International Trade and Policies-byDr. Shradha Malhotra BangaWeb blog: drshradhabanga.jimdo.comMail id: shrdha.malhotra@sharda.ac.in

About the InstructorShradha M BangaAcademic QualificationPh.D.: Rajasthan University, Jaipur M.B.A. (Investments) : ICFAI University M.A. Economics: Rani Durgawati University, Jabalpur

 Mastery in :

Innovation and Commercialization: Massachusetts Institute of Technology, Cambridge, U.S.

Globalization: University of Georgetown, U.S.Statistics Inference: University of California, Berkeley,

U.S.

About the Course6 units covering:

Introduction of international trade, theories, trade trends,policies, organizations and impact on economy

Introduction to Globalization

glbn.flv

Objective of SessionTo define globalization and international

business and show how they affect each otherTo discuss the major advantages and

disadvantages of globalizationTo understand why companies engage in

international business

The GlobeContinents: Asia, Africa, N America, S

America, Europe, Oceania, Antartica..en_continents.gif

Continents are landmasses divided by oceans..

Oceans.. Pacific, Atlantic, Indian, Southern (Antarctic), and Arctic Oceans..world-oceans-map.jpg

Globalization

Definition:‘emergence of interdependent relationships among people from different parts of a world’

Set of relationshipsBetween different nations

Globalization related relations…Aid to a poor countryFashion show paegentFootball matchLeisure trip

How Globalized are youGlobalization_ You're living IT_(360p).flv

Global brands in

India

Indian brands in

global business

Globalization:

Factors contributing to GlobalizationIncreased used of technologyLiberalization of cross-border trade and

resource movementsDevelopment of services that support

international businessGrowing consumer pressuresIncreased global competitionChanging political situationsExpanded cross-national cooperation

The Criticisms of Globalization

Threats to national sovereigntyGrowth and environmental stressGrowing income inequality

Pros and Cons of Globalization_(360p).flv

AdvantagesAccess to multiple marketsCollaborative decision makingCultural awarenessSwift spread of informationTolerance upgradation

Disadvantages of GlobalizationInequality of incomeAmericanizationSocially unequal distribution of world

resourcesCommodification of laborLess accountability for rich countries in name

of developmentSpread of deadly diseasesInhumane use of PoW and child laborHuman trafficking

Definition of International Business

All commercial transactions—including sales, investments, and transportation—that take place between two or more countries

Reasons That Firms Engage in International Business

Expanding salesAcquiring resourcesMinimizing risk

Modes of Operation in International Business

Merchandise exports and importsService exports and imports

Tourism and TransportationService Performance: banking, insurance,

engineering, management, interest and dividend

Asset UseInvestments: FDI(controlling interest) and

FII(non controlling interest)

Types of International Organizations

Collaborative arrangementsStrategic AllianceMultinational Enterprise (MNE)

Collaborative ArrangementsUsed to define:Companies that work as joint ventures,

licensing agreements, management contracts, minority ownership and long term contractual arrangements

New alliance

Strategic AllianceSame as collaborative agreement but often

reserved to refer either to an agreement important to one partner

Or an agreement that does not involve joint ownership

Joint work but identity apart

Multinational Enterprise (MNE)It takes a world wide view..And is willing to consider market and

production locations anywhere in the world.