International Trade and Policies
-by
 Dr. Shradha Malhotra Banga
 Web blog: drshradhabanga.jimdo.com
 Mail id: shrdha.malhotra@sharda.ac.in
About the Instructor
Shradha M Banga
 Academic Qualification
 Ph.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 Course
 6 units covering:
 Introduction of international trade,
 theories,
 trade trends,
 policies,
 organizations and
 impact on economy
glbn.flv
Objective of Session
 To define globalization and international business and
show how they affect each other
 To discuss the major advantages and disadvantages of
globalization
 To understand why companies engage in international
business
The Globe
 Continents: 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 relationships
 Between different nations
 Globalization related relations…
 Aid to a poor country
 Fashion show paegent
 Football match
 Leisure trip
How Globalized are you
Globalization_ You're living
IT_(360p).flv
Global
brands in
India
Globalization:
Indian
brands in
global
business
Factors contributing to
Globalization
 Increased used of technology
 Liberalization of cross-border trade and resource





movements
Development of services that support international
business
Growing consumer pressures
Increased global competition
Changing political situations
Expanded cross-national cooperation
The Criticisms of Globalization
 Threats to national sovereignty
 Growth and environmental stress
 Growing income inequality
 Pros and Cons of Globalization_(360p).flv
Advantages
 Access to multiple markets
 Collaborative decision making
 Cultural awareness
 Swift spread of information
 Tolerance upgradation
Disadvantages of Globalization
 Inequality of income
 Americanization
 Socially unequal distribution of world resources
 Commodification of labor
 Less accountability for rich countries in name of
development
 Spread of deadly diseases
 Inhumane use of PoW and child labor
 Human 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 sales
 Acquiring resources
 Minimizing risk
Modes of Operation in
International Business
 Merchandise exports and imports
 Service exports and imports
 Tourism and Transportation
 Service Performance: banking, insurance, engineering,
management, interest and dividend
 Asset Use
 Investments: FDI(controlling interest) and FII(non
controlling interest)
Types of International
Organizations
 Collaborative arrangements
 Strategic Alliance
 Multinational Enterprise (MNE)
Collaborative Arrangements
 Used to define:
 Companies that work as joint ventures, licensing
agreements, management contracts, minority
ownership and long term contractual arrangements
 New alliance
Strategic Alliance
 Same 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.