Global trade and foreign investment can provide benefits like technology transfer, efficiency gains, and market access. However, critics argue it may also lead to loss of national sovereignty, cultural erosion, unsustainable practices, debt issues, and corporate dominance. To balance these concerns, some advocate for fair trade, limiting certain imports and debt, regulating corporations, and increasing self-reliance. A survey found executives see the business environment as highly competitive due to new consumers, regional economic shifts, easier information access, and faster technological and social changes. Innovation was seen as the main driver of this accelerated pace of change.

1. GLOBAL TRADE & INVESTMENT ENVIRONMENT Deepthy Sai

2. Global Trade M any economists believe that unrestricted (free) trade between nations will raise the economic welfare of all countries that participate in a free trade system. Free trade: refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country. Trade theory: theory that explain (1) why it is beneficial for a country to engage in international trade, and (2) the pattern of international trade that is observed in the world economy.

3. International trade and foreign investment support the following objectives: Protecting local employment and labour conditions Reducing economic and political vulnerability Encouraging diversification of industry Permitting the development of local technologies Protecting the environment

4. Transferring skills and technology that is not normally available in an economy. Allowing the importation of strategic goods and services. Encouraging innovation and adoption of new practices and higher standards. Encouraging efficiency through the adoption of ‘international best practices’ and importation of technology. Giving developing countries fair opportunity to trade with developed countries.

5. Loss of national economic sovereignty with regard to employment , taxation, inflation, tariff and wages policy. A reluctance by nations to take unilateral environmental initiatives for fear that they might unduly erode a nation’s economic competitiveness. Erosion of local culture in the face of imports that have a strong cultural element such as films, electronic media, music and food. Forcing countries to adopt environmentally unsustainable or socially unjust practices which damage the global commons in order to be able to earn foreign exchange. Forcing many countries, including India, into ever-increasing foreign debt leading to spiraling overseas interest payments.

6. vi. Inducing a global increase in transport use which is both inefficient and destructive to the environment. vii. Allowing transnational corporations to increasingly dominate global trade and investment which in many cases is anti-competitive. viii. Leaving many developing countries at the mercy of IMF and World Bank required restructuring, often resulting in social polarisation. ix. Making an economy less diverse and more vulnerable through encouraging it to specialize in those industries in which it has competitive export advantage.

7. To limit trade in goods and services that are produced by methods that are environmentally unsustainable or socially unjust. To promote trade associations and participate in international trading systems in order to enhance the achievement of this goal. To increase India’s self-reliance by limiting net foreign debt and current account deficits. To promote the regulation of transnational corporations.

8. International Context Fair Trade and Reform of the WTO Transnational Corporations National Context

9. On a survey conducted with executives from around the world, three trends were identified that would affect global business and how those trends would impact their company’s profitability. The growing number of consumers in emerging economies. The shift of economic activity between and within regions. The greater ease of obtaining information and developing knowledge.

10. Increasing communication and interaction in business and social realms as a result of technological innovation. Shifting structures or emerging forms of corporate organization. More social backlash against business. 85% of the executives describe their business environment as more competitive than it was 5 years ago. Innovation in products, services and business models was identified as the main reason for the accelerating pace of change.

11. Thank you