Effect of the Global Financial Crisis on the BPO Sector
Like other sectors in the corporate world, the BPO sector has been affected by the ongoing global economic crisis. For instance, there has been a twin movement that has manifested itself in the way the BPO sector has been impacted. On one hand, many companies in the West (US and Europe) have trimmed their budgets […]
Behavioural Models for Project Managers
There are several models of behaviour that the project manager can draw upon in his or her work. These include Maslow’s need hierarchy theory, Herzberg’s Hygiene theory and McGregor’s theory X and theory Y as applied to project management. All these behavioural models point to the ability of the project manager to motivate the people […]
Six Sigma as a Strategic Tool
As mentioned in the earlier articles, Six Sigma helps the organization develop at various levels viz. operational, tactical and strategic. While the operational and tactical goals of cost reduction and increased customer satisfaction are well understood and appreciated, the strategic intent behind Six Sigma is not well recognized. It is the pivotal factor, however in […]
Why Jet Airway’s Problems are Symptomatic of the Troubles in the Indian Aviation Sector
The Never Ending Problems of Jet Airways Not a day goes by without some news or the other about the beleaguered airline, Jet Airways and its never ending saga of seeking bailouts and restructuring its massive debt. What was once a pioneer and a premium airline in the Indian Skies is now facing humiliation on […]
Finished Goods Supply Chain Operations
FG Supply Chain consists of all activities involved in movement, storage and distribution of Finished Goods from the Delivery point of Plant to the Point of Sale. In the case of global supply chains, supply chain management gets more complicated with the variations arising out of different countries regulations and logistical practices. Computer Hardware supply […]
Any student or professional wanting to understand more about Imports and Exports would have to understand the history and economic principles that have chartered the course of international trade to its current regime.
In the backdrop of the countries economic policies and financial conditions such as its balance of payments situation, the governments formulate rules and regulations that govern the countries trade with other countries.
World Trade Organization or WTO as it is called is the International Organization that deals with the global rules of trade between nations.
Its primary function and goal is to facilitate smooth and free flow of trade between countries.
WTO came into being on 1st January 1995 and is Head Quartered in Geneva, Switzerland. The Organization was created at the Uruguay Round Negotiations and consists of 153 member countries.
A Director General and functions with a Secretariat Staff of 637 heads WTO.
WTO functions primarily as the Forum for trade negotiations between countries. Its main functions include Administering WTO Trade Agreements, Handling Disputes, Monitoring National Trade policies of member countries, Technical assistance to Member Countries.
Considered to be one of the youngest of International Organizations, the WTO is regarded as a Successor to the GATT agreement that came into being in the after warmth of Second World War.
Historically treaties have been the agreements that ruled between two countries.
Post Second World War and creation of WTO and other organizations have paved way for more and more of international co-operations in the field of politico economic environment, with the result there have come to existence many regional, intra regional and global super nations groups engaging in regional trade agreements.
Creation of The European Union is one of the most important events in the History of our Civilization. EU, known as European Union was formed by Masstricht Treaty in 1991 and laid foundation for an economic and monetary union that included creation of one single currency across member nations.
The European Free Trade Association was setup in 1960 with one of the main aims to establish multilateral associations between the member countries to abolish customs barriers and creating a single free market across European Union.
Some of the other associations and agreements that have come into being are The North American Free Trade Agreement (NAFTA) signed by Canada, Mexico and US in 1994.The Association of Southeast Asian Nations (ASEAN)
Complexities arise in International Trade due to the nature of economies of the countries all over the world. Less Developed Countries and Developing Countries economies are agriculture based and seasonal and their reliance on export markets is very high.
They in turn import manufactured goods from developed countries where in the cost of imports is fairly stabilized.
With the variation in export earnings and high or stabilized imports, the countries stand to face huge fluctuations in terms of international trade which in turn effects their domestic economy.
However amongst the developed countries the international trade has always been beneficial. In fact most of the EU member countries have managed to increase their incomes due to the removal of trade barriers within the EU.
But the trade relations between developed and under developed countries have always been the bone of contention and controversies.
The business orientations of the Multi National Companies who establish manufacturing as well as selling in countries where labor and resources are cheaper is seen as a form of exploitation.
WTO meetings and conferences are used as a platform by various interest groups to bring to the table various issues concerning public health and safety, environmental impact and other evils arising out of international trade.
We are slowly seeing the new shades of moral and ethical values as well as other issues that impact our environment and global concerns featuring in and affecting the international trade.
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