Trade crosses every border and touches every wallet in every nation
Businessline. Chennai: Jun 9, 2005. pg. 1
By: Lavi, MOHAN R, Tricker, Bob
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Abstract (Document Summary)
The chapter on foreign direct investment highlights 'cost of resources' as one of the
determinants of fund flow. "The continuing barrier to the dismissal of unwanted workers
in Indian establishments with 100 or more employees paralyses firms," observes the
author when searching for why India remains "an unattractive base for labour-intensive
manufacturing". If looking for a primer on foreign exchange, the chapters on global
monetary system, forex market, FEMA, Euro vs Dollar, and currency crisis can provide
you with the inputs. Two key indicators for close monitoring, as Paul prescribes, are
'short-term debt as a percentage of forex reserves' and 'net forex assets-currency or
NFA-C' ratio.
There are interesting interludes in the form of cases.You'd read in the Kalyana
Mandapam case how the Madras High Court interpreted the meaning of 'mandap
keeper'. [MOHAN R. Lavi] cites CBEC's notification exempting taxable services provided
by a hotel as mandap keeper; there, 'food' is defined as "a substantial and satisfying
meal".
To follow what's happening about directors, catch up with Bob Tricker's Pocket Director,
from Viva (www.vivagroupindia.com). Every director needs 'helicopter vision', says
Tricker. It is the ability to perceive issues at different levels of abstraction, he explains.
Full Text (731 words)
(Copyright 2005. Financial Times Information Limited - Asia AfricaIntelligence Wire. All
Material Subject to Copyright.)
ART is like a border of flowers along the course of civilisation, said Lincoln Steffens, the
author of The Shame of the Cities. Artful traders crossed borders long ago, and business
now is anything but local.
The gamut of global trade has its own special jargon, for a good grounding on which you
may find quite apt Justin Paul's International Business from Prentice-Hall of India
(www.phindia.com).
The book begins with 'globalisation' and moves on to WTO, TRIPS, GATS and FDI. The
author analyses India's Foreign Trade Policy (2004- 2009) and opines that, like the US,
we may be able to dispense with EXIM policy but only after achieving critical mass.
Removal of import restrictions threatens the existence of small- scale units, points out
Paul, and notes that even to achieve 10 per cent annual export growth rate, we have to
rely on small scale industries.
The chapter on foreign direct investment highlights 'cost of resources' as one of the
determinants of fund flow. "The continuing barrier to the dismissal of unwanted workers
in Indian establishments with 100 or more employees paralyses firms," observes the
author when searching for why India remains "an unattractive base for labour-intensive
manufacturing". If looking for a primer on foreign exchange, the chapters on global
monetary system, forex market, FEMA, Euro vs Dollar, and currency crisis can provide
you with the inputs. Two key indicators for close monitoring, as Paul prescribes, are
'short-term debt as a percentage of forex reserves' and 'net forex assets-currency or
NFA-C' ratio.
Part IV of the book devotes attention to 'strategy of international business' through case
studies. 'Justin's Globe-Hex model' offers you six strategies for success - infrastructure
development, export led growth policy, proactive and planned participation, agriculture
promotion, import of raw materials, and safeguards against unrealistic imports.
"Faith crosses every border and touches every heart in every nation," said George W.
Bush. Trade crosses every border and touches every wallet in every nation. Useful read
to demystify international business.
Food is a substantial and satisfying meal
MOHAN R. Lavi's new book Service Tax, from Bharat Law House
(www.bharatlaws.com) is about concept, practice and procedure of a growing fiscal
leverage.
"The administration of service tax requires a separate comprehensive legislation along
with distinct administrative machinery," argues Lavi. "Service tax is envisaged as the tax
of the future. Well synchronised taxation on manufacturing, trade (domestic and
international) and service without giving rise to cascading effect of taxation would be an
ideal worth pursuing in the immediate future," he adds.
There are interesting interludes in the form of cases.You'd read in the Kalyana
Mandapam case how the Madras High Court interpreted the meaning of 'mandap
keeper'. Lavi cites CBEC's notification exempting taxable services provided by a hotel as
mandap keeper; there, 'food' is defined as "a substantial and satisfying meal".
A substantial and satisfying read, I'd say of Lavi's work, especially if you're hungry for
knowledge on service tax.
Helicopter vision
ALMOST every director on the board is in somebody's pocket, it is said. So Irani has
thought of giving one more push to independent director.
To follow what's happening about directors, catch up with Bob Tricker's Pocket Director,
from Viva (www.vivagroupindia.com). Every director needs 'helicopter vision', says
Tricker. It is the ability to perceive issues at different levels of abstraction, he explains.
"When a helicopter is on the ground the pilot can see every blade of grass but cannot
see very far. As the helicopter rises, more and more comes into the pilot's vision, but in
less and less detail. At a considerable height it is possible to see to the distant horizon
and scan all the ground in between, but the detail of individual elements has not been
lost."
How does such a vision help a director? It helps him or her to think at the level of the
personalities involved in a situation, at the level of a department, company, industry and
so on.
You can achieve helicopter vision with some training, but what is more challenging for
directors is to decide which level is appropriate to the matter at hand, notes Tricker.
"Far too many decisions are made at an inappropriate level. Perhaps a decision is
treated as an operational matter, failing to recognise the managerial or strategic aspects;
or the reverse, the decision is treated as strategic, failing to recognise the operational
implications."
A book for your pocket!
BooksOfAccount@TheHindu.co.in