vishvyapar jan issue
TRANSCRIPT
-
7/29/2019 Vishvyapar Jan Issue
1/22
-
7/29/2019 Vishvyapar Jan Issue
2/22
Dear Readers,
We hope you enjoyed the last issue of Vishvavyapar. Yet another new
issue of Vishvavyapar is out with new talks of the global family. The
esteemed Professor of economics, Mr. S.K.Singh, has provided us with
some insights of this much talked about issue through his article
Downgrade of US Debt: an Analysis. Corporate bites in this issue are
provided by Mr.Kinjal Pandey, General Manager at A.P Moller-MaersklineGroup.
This edition comes with a new column of interview summaries of our senoir
batch to give an isight of interviews.
Lastly you would also not want to miss the crossword puzzle of the month
do solve it.
Enjoy Reading!
F r o m e d i t o r s d e s k
In this issueDowngrade of US Debt: An
analysis
Doing international business:
ethically
Interview Experience
FDI in retail in India
IB News
Crossword
(Mail your views with name
and topic to
01
mailto:[email protected]:[email protected]:[email protected] -
7/29/2019 Vishvyapar Jan Issue
3/22
The newsletter is envisaged as an attempt to form a link with the latest happenings in
the dynamic world of international business- as a platform for the authors to bring
across to the readers their perspectives on what moves the wheels of the corporate
world in the international arena.
V i s i o n
02
-
7/29/2019 Vishvyapar Jan Issue
4/22
Doing International Business: ethically
Doing business in the global marketplace
requires exhibiting overseas. Participating in
international shows helps establish your
companys presence as a global player, and is
perhaps the single most valuable tool in forging
new, valuable relationships with your foreign
counterparts.
But there is an element of risk in international
exhibiting. While the United States enjoys a
relatively high level of political stability, the
same is not true around the world. Riots
happen, terrorism happens, strikes happen,
even natural disasters happen. Obviously, these
events cannot be predicted, but there are
certainly things you can do to minimize your
companys exposure to risk. It is not realistic to
simply avoid any location that might be
potentially dangerous. One must weigh the
perceived risk against the possible rewards and
make a reasoned judgment call. To do that, use
the MAP formula that can be stated as
following:
M: Maintain Awareness: Keep abreast of
current events in your destination country. The
media can be your ally in this task, although it is
good to remember that the camera crews dont
arrive until there is something to film. A crisis
may have been brewing for a while before
something sets it off and you want to be
aware of whats brewing.
Pay attention to local media. Do not rely solely
on American television or print media to give
you a perspective on whats happening. Youll
get a clearer, more authentic version of events
from either the country itself or that of nearby
neighbours. Getting accurate information out of
some countries is notoriously difficult former
Soviet Bloc countries, China, Korea, and some
African dictatorships for example so youll be
forced to be more proactive in your research.
Additionally, the State Department regularly
issues reports updating conditions in various
locations for Americans abroad. They will also,
when conditions merit, urge travellers to leave
or avoid a particular destination. Make sure you
check this information regularly, and take any
warnings issued by the Government.
C o r o ra te Ar t i c le
03
-
7/29/2019 Vishvyapar Jan Issue
5/22
A: Ally Yourself: Partner with local vendors,
suppliers, and customers. These people will be
your eyes and ears on the ground in your
destination country. After all, they live thereevery day, and will have valuable firsthand
knowledge of what is going on. This can be
more valuable than any information gleaned
from news reports, as local residents will be
able to place things in perspective. Theyll know
if the rumblings between Faction A and Faction
B are elevated or are just at a regular level but
in the spotlight. While it is important to view
media sceptically, as they have a tendency
toward sensationalism, it is also important notto rely too much on the advice of any one
foreign ally. Some cultures are structured in
such a way that people will go to elaborate
lengths to avoid saying no or having to deliver
unpleasant news. This can be misleading, and
give you the impression that things are perhaps
better than they really are or seem to be.
One last caveat: The majority of your allies have
a financial stake in your show participation.Remember that they will be making judgments
and giving advice with one eye on their own
interests. Additionally they may assess risk
differently. People who live with the daily
threat of car bombs and drive-by shootings
learn to take these things in stride, while a
visitor may find themselves terrified. That is
why it is important to combine your allies
reports with objective media information.
Have your allies brief you on the area before you
arrive. Where are the safe areas, and what
sections of town are to be avoided? Are there
local customs that you need to know? There can
be regional differences within a country
metropolitan areas may be far more liberal than
the rural countryside. You want your people to
fit in as much as possible. Being noticed on the
show floor is a good thing being noticed as a
potential target by an angry crowd outside, notso good situation to be in at all.
P: Plan: Have a worst-case scenario plan in
place. Where will you go if the convention
centre is attacked? It is prudent to have an off-
site go-to spot designated, even if youll never
use it. Airports, municipal buildings, embassies
or an unaffiliated hotel are all good choices for
this task. Decide on a meeting spot to regroup if
your party gets separated during chaotic events.
Each member of your team should have their
own travel documents with them at all times.
Make sure everyone has everyone elses contact
information. A phone list may seem like one
more bit of paper to manage, but it could come
in invaluable if one or more individuals get lost.
Have a code of behaviour in place for your
booth staff. Now, more than ever, they are acting
as your companys ambassadors. People are
often highly aware of the strangers in their midst who they are, and how they conduct
themselves. Its tempting to kick up your heels
and have a wild time, especially in a strange,
exotic locale but acting like the Ugly
American can be bad for business. Worse, wild
times can have fatal results. Visitors who are
obviously out of their elementand intoxicated
04
-
7/29/2019 Vishvyapar Jan Issue
6/22
and intoxicated are easy pickings for the
criminal element that lurks in every city.
Using the MAP formula doesnt ensure that
nothing bad will ever happen. However, it will
help your team be prepared for what might
happen during your next overseas exhibit.
For small and medium sized enterprises in the
business or professional services industry,
expanding to a foreign market can be a daunting
proposition. Many such companies limit their
growth by not taking the chance, while others
proceed with insufficient preparation and then
wonder why they didnt succeed. The following
is a brief outline of the key steps that should be
undertaken prior to launching into an
international venture, and some of the issues to
consider.
Article by:
Kinjal Pande
General Manager , A.P. Moller - Maerskline Group
05
-
7/29/2019 Vishvyapar Jan Issue
7/22
Downgrade of US Debt: An Analysis
(Article Continued from December issue)
Shrawan Kumar Singh,
Professor of Economics and Director,
School of Social Sciences, IGNOU, (Retd.)
Impact on India:
How will this rating downgrade pan out in
India? In this context, three questions are
important: First, how severe is the US debtdowngrade in general and what are the
implications for Indias own debt? Second,
what has been the impact of this downgrade
on money, forex, government securities, and
equity and bond markets. And third, what is
the likely impact on Indias growth prospects
and the implication for policy perspectives in
the current context? A related question is:
how serious is the downgrading for Indias
own position? India is rated seven noticesbelow AA, at BBB-, with a stable outlook by
S&P. This reflects the lowest investment
grade ratings for India, only one notch above
the junk category. Goldman Sachs recently
upgraded Indian equities to market weight
from underweight. Even with its high debt
and deficit levels, the country is in a relatively
comfortable position compared to the US and
other advanced countries. Even as the
countries in Europe seem to be facing credit
rating cuts, India is rightly pressing rating
agencies to secure an upgrade.
The finance ministry has asked all the financial
sector regulators to look at measures to
improve credit rating.
Except for the foreign exchange market and
the equity markets, the impact of the US debt
downgrade was muted on all fixed income
markets including the money market, with the
exception of the corporate bond market
which witnessed some pressure on bond
spreads. The nexus between the stock marketindices, foreign institutional investment (FII)
flows and the rupee exchange rate became
evident during this period. Significant FII
outflows were noticed post-US downgrade,
starting 5 August 2011.
06
W o r d s f r o m F a c u l t
-
7/29/2019 Vishvyapar Jan Issue
8/22
It is clear that except for the capital market
and the foreign exchange market, the impact
of the US debt downgrade was muted in all
other fixed income markets. Hence, apart
from the transmission effect of the policy rate
hikes, any fear of additional impact of the
debt downgrade is not well-founded. Any
liquidity concerns in either the money or forex
a market as fallout of the US debt downgrade
has been quenched in time by the RBIs
assurance that adequate rupee and forexliquidity will be sustained to prevent any
excessive volatility in interest rates or in the
rupee exchange rate. India, by virtue of its
modest openness and its track record of
prudential policies, may not face any serious
disruption of a lasting nature. There could be
some hiccups, like the hardening of
government securities and bond yields,
combined with some stock market correction,
but the near and medium-term outlook for
growth as also for financial stability should
remain intact.
The accommodative policy of the US and
other advanced economies to preventrecessionary trends will contribute to further
augmentation of global liquidity seeking
better returns.
Given the interest rate differential, the
current resilience of the Indian economy and
medium-term growth prospects, the country
is bound to remain one of the best
destinations for foreign investment. Hence, it
is expected that the inward capital flow will
regain its buoyancy in the coming months.
The current growth momentum is intact. At
best, there could be only a slight moderation
in growth, but definitely not a slowdown.
Fiscal position is another soft spot in theeconomy. Prospects of increase in subsidy
payments, there is the risk that this years
budget may put additional demand pressures
stoking inflation. The domestic currency may
harden in case of a pronounced slowdown in
developed economies, but the slowdown in
the global growth is also expected to bring
commodity prices to more affordable levels.
This trend is amply reflected in moderating
crude oil and metal prices. The other side of
this story is that growth may not suffer if
public sector demand increases. Given the
persistent demand pressures from the
private, public and export sectors, and the
downside risks to sustenance of capital flows,
the appropriate policy stance for the central
bank would be to persevere with its anti-
inflationary stance and continue tightening
rates if needed. It is commendable that both
the government and the RBI have chosen this
path so far (Economic and Political Weekly,
August 20, 2011).
Near-term confidence notwithstanding, the
Indian IT industry is somewhat guarded on the
long-term impact. ``The lag effect will show
up some two quarters down the line''. But the
retail Indian BPO could be hurt straightaway
as the impact of the rating downgrade
manifests in higher interest rate on home
mortgage, declining travel, drop in spending
on non-essentials and the like in the U.S.
07
-
7/29/2019 Vishvyapar Jan Issue
9/22
The rating downgrade will also have definite
consequences for trade. The immediate worry
is that how will the dollar move. Any
depreciation in dollar is going to hurt Indian
exports. Any fall in dollar will make Indian
exports uncompetitive. Export-driven
industries such as garments, handicrafts,
leather, gems and jewellerycould come under
severe stress because of changes in dollar-
rupee parity likely in the wake of rating
downgrade. There is a positive aspect to it,
however. The imports (especially the oil bill)
could turn cheaper should dollar depreciate.
Though the macro numbers in India are still
encouraging, the deceleration concerns have
already started assuming vocal expressionthese days. The latest series of actions on the
U.S. front are bound to force the monetary
and fiscal managers in India to re-adjust their
policy prescriptions in a dynamic global
environment, which is set for a major
metamorphosis in the wake of Standard &
Poor's decision to push America out of the
risk-free borrowers' list.
The central bank may continue to follow the
policy ofleaving the rupee alone. The RBI does
not have any target rate or band. Intervention
is resorted to only when the market is volatile.
The appreciation of the rupee helps in
bringing down the cost of imports of raw
materials including oil. Export industries
dependent on imports have benefited greatly
by the decline in prices. Export of gold and
diamond-studded jewellery is a good example
since nearly 80-90 of the raw material is
imported. In all the discussions on exchange
rates one rarely comes across such concepts
as income and price elasticitys of imports andexports and Marshall-Lerner Conditions, etc.
Whether Indian exports will be out priced in
international markets depends on the relative
strength or weakness of other currencies.
One reason for the good performance of
Indian exports despite the rupee appreciation
is the fact that the currencies of some
competing countries have appreciated even
more, providing a net advantage to the rupee.
Any appreciation of the rupee should be
treated as a correction for its undervaluation
in relation to the dollar. Although the US
share in our exports is about 16 per cent,
nearly two-thirds of the total is invoiced in
dollars. The real problem will arise in case
there is a double dip recession in US and
Europe. The extent of intervention can be
only marginal since the total volume of forex
transactions either in India or in the worldmarkets is huge. It is possible that a few
industries may suffer due to rupee
appreciation. The remedy is in taking fiscal
measures to provide relief as was done during
the recent crisis. Information technology is
likely to be one of the sectors that may be
adversely affected. There is a difference
between the crisis of 2008 and the event of
2011. The initial position in 2011 for India is
different from [that in] 2008.
08
-
7/29/2019 Vishvyapar Jan Issue
10/22
Our fiscal position is weaker both in quantity
and quality. The external sector position is
weaker both in terms of stock of assets and
liabilities, be it quantity-wise or quality-wise,and flows in terms of current account deficits.
Domestically, both public and private
investments seem to be somewhat subdued,
while supply inelasticitys have set in. Above
all, in 2008, we entered the crisis with
confidence in terms of both growth and
inflation, while the sentiment today is less
confident than before. The redeeming
feature, perhaps, is that the events in 2011
may not indicate a serious crisis, but would
indicate uncertainties, volatilities, divergent
growth paths, divergent policies, etc. The
challenges for policymakers are different, way
forward (Y.V. Reddy, The Hindu, August 18,
2011).
Indian economy was largely insulated from
the global financial turmoil that had resulted
from downgrading of US credit rating and the
sovereign debt crisis in the Euro zone. Firstchallenge for India is to start thinking in terms
of a nimble strategy, not just cautious policy,
to handle a divergent world. There is a
divergence between the real sector and the
financial sector; there is a divergence between
policy and the markets. First is to have a
strategy, second is to be nimble. The next
question is how are the other emerging
markets going to do is an issue. Most other
Emerging Market Economies (EMEs),
particularly in Asia, are stronger than India.
Given the robustness of US bonds,
India need not worry overtly about the
downgrade. As it happens, valuations are
now attractive for investors. And so long as
the Indian economy grows and if policy
becomes more assertive, India will remain a
destination for both portfolio and direct
investments in a world with shrinking options,
beating back any ill-winds from S&P-type
ratings. The global event is a matter of
concern, but not a matter of alarm, because
the long-run story remains more or less intact.
The Indian political class must realise the
dangers of partisanship sans concern for the
collective good. India, therefore, would do
well to get its domestic political house in
order and move forward on the policy front.
The government must now summon the
requisite initiative.
********
09
-
7/29/2019 Vishvyapar Jan Issue
11/22
The following is a short summary of the ICICI
bank interview of Udit Gupta.
I was invited in the room where the panel
consisted of two panellists, one was the HR, and
the other was the Functional Expert (FE).
HR: So Udit, tell us about yourself.
Me: I mentioned the normal rattofied stuff:
Cricket, Travelling, Chinese, and Social Work.
HR: Why did you leave cricket if you played at the
University level.
Me: I had a really nasty injury in which I broke my
nose, so I told them about it, and how I am really
scared to even hold the bat now while facing
the ball after that accident. I made sure I was
very candid and did not try to hide my weakness
that I gave up on something in which I was good
at.
FE: You did your internship in Bank of Tokyo. Tell
us about that
Me: I told them about it. Pretty standard stuff.
FE: So you love travelling, ehh? Your CV shows
you even went to Sikkim for one month for some
internship in an NGO.
Me: Told them about my internship, my work,and the difficulties I faced there, the new culture,
the new people, living amongst tribals etc.
FE: What do you think these NGOs get their
funding from?
Me: Corporate, donations, sponsor events etc.
HR: Tell us about your family.
Me: Told them the exact thing.
FE: You have so many things in your resume. Tell
us about your daily schedule.
Me: Sir, I wake up at 5:00 for jogging (I
mentioned in my CV that I do long distancerunning). I come back at 6:00. I leave my home at
7:00 for my Chinese classes. I attend my class
from 8:00 to 10:00. I come to the college and
attend classes which generally finish by 3:30. I
stay back till 6:00 for the Placement committee
work and leave for home after that.
HR: Any location issues?
Me: No.
FE: Any questions from us.
Me: I asked them about their office in Shanghai,
and since I am interested to work in that
Geography, would I be able to get a chance to
handle ICICI's operation there?
FE: Its really small. Only two people are handling
it so most probably no. But maybe Singapore and
Malaysia, after a few years only, though.
Me: Thanks Sir.
10
I nte r vi ew E x e ri e nc e
Udit Gupta
Master of International Business
Delhi University
-
7/29/2019 Vishvyapar Jan Issue
12/22
PLACEMENT.guys being honest to oneself,
mind my words, it is one that thing for which
we are in the campus.
I was very clear from the beginning about the
sector I wantto pursue my career in, it wasthe IB sector. I worked on my skill set required
to work in this sector especially in ITPD &
SCM.
And finally that moment came, 26thDec2011
was the D-day when STC was scheduled to
arrive. It was a two day process, first day was
for GD and the next was for interview. GDs
were scheduled in small groups of seven
students each, mine was the last GD and Imust concur, it was not at all a typical fish-
market like GD. People were very well
behaved and we actually discussed the case
rather than tearing each other apart. At the
end of the GD the moderators specifically
pointed out me and asked the question- I
have a question for you..You are a Doctor?
(My answer- Yes sir)If we select you in STC
will you continue your clinical practice? (I
replied that how being in Fortis I got
interested in managerial aspect of corporate
Hospitals and why have I fit in the STC), a
terse replied came from one of the moderator
who was an IIM-L alumnus.You have not
answered the Question, will you practice or
not?.....I replied , No sir. Chief moderator
wrote something on a paper and asked us to
leave. After 30-40 minutes result came out
and I was shortlisted.
27th
December2011, 11:30 am.
We welcomed seven people from STC of
whom four were directors from different
verticals and three were GMs. I should have
felt intimidated but strangely I was very calm
and had perfect control over my breath. My
number for interview was seventh; I had a cup
of tea at JP and started looking my notes for
finer details. Then came the call of
Ramteke..next are you Kapil!
I knocked the door and asked for the
permission to come in, they replied.oh yes
yes please come.then I asked to sitthey
again replied in affirmation.
Q1. Hmmmso you are Dr. Goswami?
Ans. Yes sir.
Q2. Doctor.then MBA and now a PSU?
Ans. I was waiting for this question, the
moment it bombarded on me, I felt
gotcha..!!!!...I explained them the whole
supply chain of the question with specific
emphasis on my vision of working in STC.
(People must take their discretion in finding
out their purpose of joining a company like
STC according to respective profile and
experience).
Dr. Kapil Goswami
Master of International Business
Delhi University
11
-
7/29/2019 Vishvyapar Jan Issue
13/22
Q3. OkDr. Goswami .you have worked with
Tata Motors as summer intern; tell us about
the problem Tata Motors is facing in case of
Nano?
Ans. I gave the relevant answer.
Q4.Device a market strategy for it?
Ans. I gave the relevant answer.
After 3-4 such questions, question started
coming from another corner
Q5. Do a market segmentation for Medical
appliance manufacturing company, which is inexport of such items.
Ans. I expected these kind of questions and
really want to thank RTL and its Journals on
Marketing for my fine preparation of these
questions.
Q6. Which are the Hospitals involved in tele-
medicine in India?
Ans. I never expected such medical jargons
from themalthough I gave the answer
but I knew what is waiting for me when they
will start questioning from their own field i.e.
IB.
Question again changed the position and
started coming from a different direction.
Q7. What are regional trade blocks?
Ans. I answered with lots of examples.
Q8. What is the trade-off between RTA &
WTO?
Q9. Why WTO came into existence and how is
it different from GATT?
Q10. Do you believe that WTO has achieved
its objectives (this question was germinated
because my answer to previous question).
Q11. Which round of talks is going on in WTO
and why talks are not concluding?
Ans. My advice to aspirants is that they
should focus on the welfare of India, ratherthan giving a balance view on such policy
questions, as I discussed AoA and Subsidy
issue, Non Tariff barriers etc. but
unfortunately pointed out the concern of
developed nations also viz-a-viz to India.
Q12. How do countries solve their issues in
WTO?
Ans. I explained them DSB, countervailingduties and antidumping duties etc. before my
answer concluded another question came.
Q13. What exactly is the difference between
countervailing and antidumping duties?
Ans. My advice to aspirants is to take such
Lolly-pop questions with open hands and
explain them in detail.
Questions again changed the direction
Q14. Does anything strike in your mind with
alphabets ABC w.r.t analysis of an
organization?
Ans. I enumerated all the models that are in
abbreviated form like SWOT, BCG matrix,
Porters five force model etc. but in no vain
then they gave a clue that something related
to inventory management and I explained
them activity based costing (ABC).
Q15. Which all subjects have you studied so
far?
Ans. This is again a very expected question
and key to answer this is to lead the
interviewer towards your subject of strength,
in my case it was ITPD.
12
-
7/29/2019 Vishvyapar Jan Issue
14/22
Q 16.How an Importer opens an LC?
Q17. Who are primary, secondary and tertiary
parties to LC?
Ans. I could answer primary and secondary
comfortably but had no clue about tertiary.
They gave a clue although after I surrendered.
Q18. Who can countersign the documents
involved in international trade?
Ans. I again explained them the whole flow of
documents but they laughed and said no this
is not the answer. This was third time I was
not giving a proper answer, I asked them to
give me a few seconds to recollect my thought
process and finally answer that it is CHA who
can verify the documents on behalf of
exporter or importer but doesnt have signing
authority.
These were my last words of that interview
and even today I dont know whether my last
answer was correct or not (Whole interview
last for around 35-40 min). Five more
students went for interview after me and
after around three hours came the result that
I am an Assistant Manager with STC along
with five other MIBians.
13
-
7/29/2019 Vishvyapar Jan Issue
15/22
FDI in retail in India
FDI in retail has always been an issue of
concern and towards subjectivity from the
various sections of the industry. From
governments approval to oppositions
intervention let us try to analyze the scenarios
and its implications.
FDI in Retail a myth or a mystery..?
An analysis conducted by researchers from
Michigan State University and the
International Food Policy Research Institute
on developments in Asia from 2001 to 2009
observed that while domestic conglomerates
had played a role in the rapid growth of
organized retail in China, Indonesia, Malaysia
and Thailand, the presence of foreign firms
had grown substantially. Moreover, evidence
from developed countries shows that such
growth is followed by a process of
consolidation in which a few global retail
chains tend to be the winners.
India: A Lucrative destination
Why FDI in retail in India becomes a lucrative
destination for the Foreign Retailing giants is
that their Foreign sales have been a major
contributing source of revenue for them,
amounting in 2007 to as much as 74 per cent
in the case of a hold of the Netherlands, 52
per cent for Carrefour of France, 53 per cent
for Metro of Germany, 22 per cent for Tesco
of United Kingdom and 20 per cent for Wal-
Mart of the United States. Wal-Marts 20 per
cent too has to be seen in context: with $379
billion of revenues in 2007, it stood way
ahead of Carrefour, which came in second
with $123 billion in the global league table for
revenues.
Concerns with FDI in retail
It is of course true that agriculture is not a
homogenous sector, with farmers of different
types and sizes engaged in production. The
larger farmers with accumulated surpluses or
easier access to official credit may benefit
from the transformation in retail. What it
does is that it raises selective exposure of
Microfinance as a nonbanking financial credit
to Farmers. It is the experience of farmers
such as these that are often reported when
the case is made out that farmers do favour
FDI-led large retail. But they are by no means
the majority, and not all of them are likely to
experience an improvement in their lives once
the transformation occurs. The farmers would
tend to gain and benefit as a whole but it
would be a more skewed growth distribution.
S t u d e n t A r t i c l e
14
-
7/29/2019 Vishvyapar Jan Issue
16/22
Moreover, since global chains are allowed to
and are equipped to source supplies from
anywhere in the world, these large farmers,
just as the smaller farmers, would be subject
to competition from the cheapest global
sources. They could be shut off from access toconsumers unless they accept a significant
reduction in prices. Adverse effects on
employment and earnings are, therefore, a
real possibility.
The second concern is that even when
farmers' earnings are under pressure,
consumers may not benefit from the
promised reduction in prices resulting from
cost economies and the benefits of scaleaccruing to large intermediaries. Lower prices
for consumers may be the initial fallout when
existing intermediaries are being competed
out to provide space for the large retailers.
But once the retail trade is concentrated in a
few firms, retail margins themselves could
rise, with implications for prices paid by the
consumer, especially in years when domestic
supply falls short.
Employment Embroil
Wal-Mart Case
The average size of a Wal-Mart supermarket
in the US is 108000 sq.ft employing around
225 persons. In 2010, Wal-Mart sold $405
billion amount of goods through its 9800 odd
outlets 5located across 28 countries,
employing around 2.1 million (21 lakh)
persons. This implies that one Wal-Mart
supermarket can displace over 1300 Indiansmall retail stores and thereby render around
3900 persons jobless. The employment
created against this in that supermarket will
be 214 (or maximum 225, which is the
average in the US). Clearly, there will be
severe job losses if giant MNC supermarkets
are allowed entry into the Indian market
According to the National Sample Survey
Organization's survey of employment andunemployment in 2009-10, the service sector
category that includes the wholesale and
retail trade (besides the much smaller
segment of repair works for motor vehicles,
motorcycles and personal and household
goods) provided jobs for 44 million in the total
workforce of 459 million. It is no doubt true
that the impact of foreign-invested retail
would be restricted to the urban areas since
its entry as of now is permitted only in cities
with a population of more than one million.
But this is where the employment in trade
would be the highest. As many as 26 million
workers of the 44 million employed in the
service sector are located in urban areas.
Many of these workers find themselves in the
services sector (especially in the retail trade)
because of inadequate employment
opportunities in agriculture andmanufacturing. Out of the 71 million jobs in
services in the urban areas, around 36 per
cent are in the retail and wholesale trade and
repair services. In sum, from an employment
point of view, this is a sector that is central to
livelihoods, however precarious some of
those jobs may be. As an employer of last
resort, it serves as a poor substitute for the
missing social security programme.
Article by-Shonik bhasin (MIB- I year)
15
-
7/29/2019 Vishvyapar Jan Issue
17/22
1. Iran warns Gulf countries not to replace its
oil: Mohammad Ali Khatibi
TEHRAN: Iran warned its Arab neighbours onSunday not to raise crude output to replace
Iranian oil in the event of an embargo by the
European Union; Tehran's OPEC Governor
Mohammad Ali Khatibi was quoted as saying.
"The consequences of this issue are
unpredictable. Therefore, our Arab neighbour
countries should not cooperate with these
adventurers and should adopt wise policies,.
2. Honda Motors may spend $650 million to
restore flood-hit Thai plant
TOKYO: Honda Motor Co will completely
overhaul its flood-hit factory in Thailand in a
project that could cost more than 50 billion yen
($650 million), the Nikkei business daily reported
on Sunday. Thailand's worst floods in half a
century late last year hit Honda the hardest
among Japanese automakers, with its 240,000-
cars-a-year plant in the Ayutthaya Province in
central Thailand submerged under water.
3..China knocks US sanctions on state-run firmover Iran
SHANGHAI: China has criticised the United States
for imposing sanctions on a state-run oil firm for
exporting petroleum products to Iran, saying the
move was "without reason". Washington on
Thursday slapped sanctions on China's Zhuhai
Zhenrong Co., barring it from doing business in
the United States, saying it brokered delivery of
more than $500 million worth of gasoline to Iran
from July 2010-January 2011.
16
I n t e r n a t i o n a l b u s i n e s s - N E W S
-
7/29/2019 Vishvyapar Jan Issue
18/22
4.Japan frets over EU downgrades
TOKYO: Japanese Finance Minister Jun Azumi on
Sunday expressed worries over his nation's own
sovereign debt rating after Standard and Poor'sdowngraded nine debt-laden EU countries,
including France. "Unless Japan shows that we
are swiftly securing stable financial conditions
and rebuilding fiscal policies... it will be us next
time," Azumi told reporters.
5.France rating could go lower, but no euro zone
break up: S&P
BRUSSELS: France risks another downgrade of its
sovereign credit rating if its public debt and
budget deficit deteriorate further, Standard &
Poor's said on Saturday, a day after it cut the
country's top-notch AAA rating by one notch to
AA+. "The deficits could increase from the
relatively high levels where they are already and
reach certain thresholds in the general
government debt and deficit ratios, which might
lead to another lowering of the rating," S&Pcredit analyst Moritz Kraemer told a conference
call.
6.JPMorgan could lose $5 bn from PIIGS
exposure: Report
MILAN: JPMorgan Chase & Co could lose up to
$5 billion from its exposure to Portugal,
Ireland, Italy, Greece and Spain, Chief
Executive Jamie Dimon said in an interview
with Class CNBC, carried in Italian newspaper
Milano Finanza on Saturday. Dimon said the
bank was exposed to the five countries (PIIGS)
to the tune of around $15 billion
7.Apple reveals list of global suppliers in
supply chain audit as Tim Cook ushers in an
era of greater transparency
SAN FRANCISCO: Apple revealed its once
closely guarded list of global suppliers on
Friday, taking a dramatic and unprecedented
step in response to harsh criticism that it was
turning a blind eye to dismal working
conditions at partner factories.
17
-
7/29/2019 Vishvyapar Jan Issue
19/22
8.China forecasts 10% growth in foreign
trade: Xinhua
China is predicting sharply slower foreign
trade growth of about 10 percent year-on-
year in 2012 as officials forecast "grim" export
prospects, the official Xinhua news agency
said Saturday. The forecast growth for the
year ahead by China's top financial planning
agency is far slower than the 22.5 percent
growth achieved in 2011 when the nation's
foreign trade hit $3.64 trillion, Xinhua said,
citing customs data.
Compiled by
18
Yash Vardan Singh
Master of International Business
Batch -2012-2013
-
7/29/2019 Vishvyapar Jan Issue
20/22
Left to Right:
4. A right to use another person's property.
5. When a business is being shortsighted regarding the needs of its
customers, only focusing on its products or short range goals and missing
marketing opportunities.
6. Bond issued on the Japanese market in currencies other than yen.
8. A statement signed by a person authorized to take oaths certifying to
the authenticity of a document or affidavit.
C R O S S W O R D
19
-
7/29/2019 Vishvyapar Jan Issue
21/22
11. The point at which a developing country's eligibility for Generalized Systemof Preferences (GSP) is terminated for the X`reason of sufficient economic
progression.
12. The charge made for hauling freight via carts, drays or trucks.
14. Materials placed around cargo to prevent shifting or damage while in transit.
15. Fixed margin within which exchange rates are allowed to fluctuate.
16. A customs document permitting the holder to carry or send merchandise
temporarily into certain foreign countries without paying duties or posting bonds.
Up to Down:
1. The charges paid by a ship entering or remaining in certain ports.2. The arranging and packing of cargo in a vessel for shipment.3. A certificate issued by the agency of a national government indicating thatan export shipment has been inspected and is free from harmful pests and plant
diseases. This is called. Inspections.
7. Result of a transaction that increases earning per common share. Thisis..effect.9. A structure built for the purpose of mooring a vessel; also called a pier.10. A derogatory term for someone who opposes or disapproves of new
technology and/or new methods of working, often because the changes
threaten jobs.
11. A controlled temperature shipping container.
13. In international transportation, a charge for the failure to remove cargo from
a terminal within the allowed free time. Also, a charge for failure to load or
unload a ship within the allowed period
All entries should be mailed at [email protected] by 31th January, 2012 23:59 hrs
One lucky winner will receive cash prize of Rs. 500/-
20
-
7/29/2019 Vishvyapar Jan Issue
22/22
To subscribe our newsletter drop a mail [email protected]
Follow us on FaceBook:http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407
All rights reserved
l ll
mailto:[email protected]:[email protected]:[email protected]://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407http://www.facebook.com/pages/International-Business-Cell-MIB-Delhi-School-of-Economics/174524332610407mailto:[email protected]