Académique Documents
Professionnel Documents
Culture Documents
Service Performance
Asset Use
Investments
Portfolio Investment
Imports and exports are the most common mode of international business, particularly
in smaller companies even though they are less likely to export. Large companies are
more likely to engage in other modes of international business in conjunction with
importing and exporting. Companies may import and export merchandise, defined as
tangible goods brought into or out of (respectively) a country. While exports and
imports apply mainly to goods, they can also apply to services, or nonproducts.
Most service imports and exports revolve around tourism and transportation. The
revenue gained from international tourism and transportation is best seen in hotels,
airlines, travel agencies, and shipping companies. For many countries, especially in the
Caribbean and Southeast Asia, their income on foreign tourism is more important than
their income from exports. The same holds true in countries such as Norway and
Greece, who earn a considerable amount from foreign shipping.
Many companies enter into international licensing agreements, allowing other countries
around the world to use their assets (ie: trademarks, patents, copyrights, or expertise)
under contract, receiving royalty payments in return. Similarly, many companies engage
in franchising, a mode of business where the franchisor allows the franchisee to use a
trademark that is an essential part of the franchisee's business. For example, Gloria
Vanderbilt has franchised her name out to several clothing companies, forming the
Gloria Vanderbilt line. The franchisor also assists on a continuing basis in the operation
of the business-for example, by providing components, management services, and
technology.
Companies also pay fees that may be incurred on an international level for engineering
services handled through turnkey operations and management contracts. A turnkey
operation involves construction of facilities, performed under contract, which is then
transferred to the owner when the company is ready to begin operating. Management
contracts are initiated when one company supplies personnel to perform general or
specialized management functions for another company. This is most evident in
Disney's theme parks in France, Japan, and China.
Finally, international business occurs within direct and portfolio investments. By
investing in a foreign company, the investor takes ownership in a foreign property for a
financial return. A foreign direct investment (the more common of the two) gives the
investor a controlling interest in the foreign company. When two or more companies
share in an FDI, it is known as a joint venture. When a government joins a company in
an FDI, it becomes a mixed venture. Conversely, a portfolio investment is a
noncontrolling interest in a company that usually involves either taking stock in a
company or making loans to a company in the form of bonds, bills, or notes that the
investor purchases. Portfolio investments are particularly popular with multinational
enterprises as they offer a safe means towards short-term financial gain.
CULTURE
SOME DEFINITIONS
Supply chain management (SCM) is the management of the flow of goods. It includes
the movement and storage ofraw materials, work-in-process inventory, and finished
goods from point of origin to point of consumption. Interconnected or interlinked
networks, channels and node businesses are involved in the provision
of products and services required by end customers in a supply chain.[2] Supply chain
management has been defined as the "design, planning, execution, control, and
monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally." [3]
SCM draws heavily from the areas of operations management, logistics, procurement,
and information technology, and strives for an integrated approach.[4]
Here are some of the reason SCM has become important to today's
manufacturing
industry:Competitive
Edge
through Core
Competencies
Today's business climate has rapidly changed and has become more
competitive as ever in nature. Businesses now not only need to
operate at a lower cost to compete, it must also develop its own
core competencies to distinguish itself from competitors and stand
out in the market. In creating the competitive edge, companies need
to divert its resources to focus on what they do best and outsource
the process and task that is not important to the overall objective of
the company. SCM has allowed company to rethink their entire
operation and restructure it so that they can focus on its core
competencies and outsource processes that are not within the core
competencies of the company. Due to the current competitive
market, it is the only way for a company to survive. The strategy on
applying SCM will not only impact their market positioning but also
strategic decision on choosing the right partners, resources and
manpower. By focusing on core competencies also will allow the
company to create niches and specialization of core areas.
QUESTION : 7
Negotiation:
Bargaining (give and take) process between two or more parties (each with
its own aims, needs, and viewpoints) seeking to discover a common ground
and reach an agreement to settle a matter of mutual concern or resolve a
conflict. The process of negotiation includes the following stages:
Preparation
Discussion
Clarification of goals
Negotiate towards a Win-Win outcome
Agreement
Implementation of a course of action
example: Often, the employer's first compensation offer is not a company's
best offer, and the employee can negotiate for higher pay, more vacation
time, better retirement benefits and so on. Negotiating a job offer is
particularly important because all future increases in compensation will be
based on the initial offer.
When you wish to buy an item from a seller and you suggest one price, the
seller suggests another and you go back and forth on the issue several
times, this is an example of a negotiation.
WTO'
An 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. WTO have also occurred in Italy, Spain,
Canada and Switzerland. The WTO was born out of the General Agreement
on Tariffs and Trade (GATT), which was established in 1947. If a trade dispute
occurs, the WTO works to resolve it. If, for example, a country erects a trade
barrier in the form of a customs duty against a particular country or a
particular good, the WTO may issue trade sanctions against the violating
country. The WTO will also work to resolve the conflict through negotiations.
'Foreign Direct Investment - FDI'
An investment made by a company or entity based in one country, into a
company or entity based in another country. The investing company may
'Protectionism'
Government actions and policies that restrict or restrain international trade,
often done with the intent of protecting local businesses and jobs from
foreign competition. Typical methods of protectionism are import tariffs,
quotas, subsidies or tax cuts to local businesses and direct state
intervention.
A good example of this is, once again, in the U.S. agricultural industry. The
Agricultural Adjustment Act of 1933 allowed the government to pay farmers
to not grow crops or livestock, thus restricting supply and raising prices. This
subsidy helped farmers who had been devastated by the Dust Bowl.
What should
investment?
government
do
to
encourage
foreign
direct
Generally, Pakistan has reasonably good policies in almost all sectors of the
economy and governance. Its not the policy thats the issue but
implementation of the policies has been an issue. Once a decision is taken,
we must not backtrack on that. The SRO culture granting undue exemptions
should also end now. Backtracking on bold decisions sends a negative signal
abroad. We can now proudly claim to have democracy in the country and
democracy requires discipline. We are happy that the government has asked
us to give them credible names for nominations on the boards of different
state-owned enterprises and self-regulated organisations. Appointment of
competent and good people at key posts will be a big service to this country.
All we want is a level-playing field for every single act of profitmaking. All
businesses whether foreign investment or local, should be treated equally
and all the sectors of the economy should be taxed without any
discrimination. We keep on sharing tax proposals with the governments and
let me tell you that the current government listens to us.
Not all of our proposals have yet been accepted but we keep on proposing
not for the sake of favouring OICCI members only but to offer a level-playing
field to all investors, including foreigners. We also regularly highlight the
need to improve the enforcement of the laws on intellectual property rights
in the country. This issue is also a hurdle in the way of foreign investment.