...successful economic changes. Barack Obama’s policies: Barack Obama re-established the Strategic Economic Dialogue (SED) and resurrected the Joint committee on Commerce and Trade (JCCT) aimed at resolving a wide range of economic issues. Obama’s administration is likely to make necessary amendments in trade policies with China in the best interests of the country, which can strengthen its position in 2012 elections. US China Interdependency: Firstly US view China as a major market for its exports and needs cheap labour for its multinational global chains. Also requires China’s credit to brook its deficit in trade whereas China needs US for its exports and investments across various industries. Violation of Policies by China: Some of the Chinese policies that curb the sustainable and balanced growth of US are: * Improper incorporation of Intellectual Property Right Laws * Excessive undervaluation of Renminbi. * Maximum subsidization offered to Green Industries * Export control on rare earth minerals. * Bid rigging in government procurement contracts. * Barriers to investment in telecommunication and financial services. * Frequent harassment of US based China companies. Chinese trade...
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...International Trade and Finance Speech ECO/372 International Trade and Finance Speech Macroeconomics consists of the large scale economic factors such as interest rates and national productivity. International trade, finance and exchange rates are a large part of this study. Today, we will dive into the basic definitions and descriptions of simple terms and concepts as they relate to macroeconomics. “The trade balance is the difference between a country’s exports and imports” (Colander, 2010). When a country is exporting more than they are importing a surplus is created, so there is more production than consumption. The opposite is true for a trade deficit. A country that imports more than it exports is running in a deficit; consumption is more than production. An example of a product in the United States with a surplus is oil. Seven years ago the U.S. imported about two-thirds of their oil consumption. By 2014 it is expected that the U.S. will only import 6 billion barrels of crude oil per day; this is about one-third of what the country uses and by 2020 U.S. oil production will exceed Saudi Arabia’s (Phillips, 2010). The problem is that the oil produced in the U.S. is high-quality crude and the oil imported is heavy, sour oil. Since the refineries are currently equipped to refine the heavier oil the U.S. has a surplus of the high-quality crude. One would expect lower oil prices with the surplus, but as the current gas prices reflect this is not the case. While the process...
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...Good afternoon everyone, my name is Han pu. I’m glad to present my current event today. When speak of trade between United States and China, the first that comes into our mind might be the big trade deficit from China to United States. However, have you ever think about the other side, what does America export to its third largest foreign market China? Last Tuesday I read an article from Chinabusinessview’ website, named What America exports to china. In this article, the author list the top 10 exports from America to China with the facts and numbers related. These products could be divided these products into three types. Type one are agriculture products including Soybean, cotton and corn. Type two is aircrafts and vehicles including Civilian aircraft, Passenger vehicles with small engines, and Passenger vehicles with large engines. Type three is scrap including Copper materials, Aluminum Materials Electronic integrated circuits. Then I draw of pie graph for the top ten exports. You’ll find that the agriculture product ranked absolute first among them, with nearly half of the share. Yes, it is the agriculture products, not the iphone, or ipod, not the cars or industrial materials, that China import most form America. Until now, you may be wondering why does China, as a big former agriculture country, import so many agricultural products from America? And Is there any potential concerns about this situation? Next I would analyze these two questions. First of all, as...
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...Globally, gelatin is largely manufactured from bovine and porcine hides, porcine hides being the more preferred lot(typically about 45% of the global gelatin produce is manufactured from pig skin), on account of the lower costs and time associated. Also, pig skin doesn’t have to contend with the leather industry on account of its low quality, making it a simpler bargain for gelatin makers. Gelatin is a vital component in the manufacture of capsules, and the Indian pharmaceutical industry is currently faced with a conundrum – a shortage of this excipient. The Indian demand for the consumption of gelatin is estimated to be around 10,000 tons in 2011, and the demand is expected to grow at a CAGR of 3-4%. However, there is a severe shortfall in raw materials necessary for the manufacture of the same – bones and ossein. The Indian gelatin industry differs from the rest of the world, in the process followed for manufacture of gelatin: while most of the gelatin manufactured globally uses hides for the manufacture of gelatin, the Indian scenario makes use of crushed bones and ossein for producing gelatin. This is due to the virtual non availability of porcine hides for manufacturing gelatin in India. The porcine industry in India is a highly unorganized segment, making the hide collection process a hard proposition; and most of the bovine hides in India are taken up by the leather industry. Ergo, the Indian gelatin industry makes use of crushed bones and ossein resulting from the...
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...Export Documentation In Pakistan Now a days export license is no MORE required to export. Only the following initial documents are required to export: -- National Tax Number Certificate, which is issued by the Income Tax Department on filing of application form accompanied with one attested photocopy of NIC. Commercial exporter is not required to register with sales tax department. But if you pay the sales tax on purchasing the goods from local market it will be better for you to get yourself register with sales tax department so that you may claim refund of your input tax deducting on your purchases. Once you are registered in sales tax department you will be obliged to file monthly sales tax return irrespective of the fact that you have been involved in any sales tax activity or not. Current bank account is required for export proceedings and docuemnts. Membership certificate of Chamber of Commerce and Industries or any relevent trade association. Once the consignment, to be exported arrives at the port, usually a clearing agent's services are sought. The following documents are required to provide to clearing agent to clear the consignment: -- Packing list Commercial invoice Letter of Credit (LC) Certificate of origin which is issued by the chamber of commerce National Tax Number Certificate Form "E" [pic][pic](State bank form): All exports from Pakistan which are subject to Foreign Exchange Regulations are required to be declared on form...
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...mineral extraction) and to help find new export markets" The Political Environment - rules and regulations to protect the host country "as a reflection of political and economic policies which seek to plan and balance overseas trade" "to gain a competitive advantage over competing suppliers." .Money - some people cannot pay in the currency you want "to enable trade to take place in markets which are unable to pay for imports. This can occur as a result of a non-convertible currency, a lack of commercial credit or a shortage of foreign exchange" The Political Environment - local jobs and industry "to protect or stimulate the output of domestic industries (including agriculture and mineral extraction) and to help find new export markets" The Political Environment - rules and regulations to protect the host country "as a reflection of political and economic policies which seek to plan and balance overseas trade" "to gain a competitive advantage over competing suppliers." .Money - some people cannot pay in the currency you want "to enable trade to take place in markets which are unable to pay for imports. This can occur as a result of a non-convertible currency, a lack of commercial credit or a shortage of foreign exchange" The Political Environment - local jobs and industry "to protect or stimulate the output of domestic industries (including agriculture and mineral extraction) and to help find new export markets" The Political...
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...What should be the role of government in international business relations? Government and business are interdependent, and when it comes to international business, this interdependence has grown even further by the globalization of economy. Government often intervene in trade by strongly supporting their domestic companies’ exporting activities. But the more emotionally charged trade intervention occurs when a nation’s economy is underperforming. At this point, government role will be protecting from imports that are reducing work and eliminating jobs in the domestic market, preserve national security and protecting consumers. Protecting jobs and Industries One of the government roles in international business will be protecting jobs and industries from foreign competition. Trade flows can cause major structural shift in employment. Links between industries spread these effects throughout the economy. Such as low domestically produced product will affect the industry that linked to the firm. To protect from foreign competition government can use TARRIFFS AND QUOTAS. Tariffs protects domestic producers of a product because import tariffs raise the effective cost of an imported good, domestically produced goods can appear more attractive to buyers. Also by Quotas protect its domestic producers by placing a limit on the amount of goods allowed to enter the country. This helps domestic producers maintain their market shares and prices because competitive forces are restrained...
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...States runs a trade surplus, this can cause an Italian clothing company to shut down because the company will not be producing the goods that the United States needs. GDP GDP is a measurement of the total size and output of the economy. The effects that the United States deficit, surplus, and debt have on the GDP are that if the public debt to GDP ratio is high, it can slow economic growth. If the debt ratio increases the exchange value of the dollar will drop. When paying back debt with cheaper currency, this could cause most investors to ask for higher interest rates if they anticipate further dollar depreciation. A higher interest rate could slow domestic United States growth. A short deficit period may cause an increase in debt. “Exports affect GDP through their influence on how the world beyond the United States demands goods and services produced in the United States” (O’Sullivan, pg. 586). “On the other hand, an increase in imports means that there’s an increase in foreign goods purchased by the U.S. residents” (O’Sullivan, pg. 586). References: O’Sullivan, Arthur. (2006). Economics: principles and tools. (4th Ed.). Upper Saddle River, New Jersey. United States public debt. Retrieved from...
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...MODES OF ENTRY USED BY INTERNATIONAL FIRMS TO ENTER INTO NEW MARKETS. TERMPAPER SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENTS OF THE COURSE GLOBAL STRATEGIC MANAGEMENT, DEPARTMENT OF BUSINESS ADMINISTRATION, AND UNIVERSITY OF NAIROBI. DATE17TH MARCH 2012 Modes of entry used by international firms to enter into new markets. Introduction A mode of entry into an international market is the channel which an organization employs to gain entry to a new international market. International firms use several entry modes to expand their businesses globally, and to enter into new markets, there are some basic decisions that the firm must takes before foreign expansion like: first they determine which markets to enter, when to enter those markets, and on what scale. The decision on which foreign markets to enteris based on the nation’s long run profit potential.-The international firm looks in detail at economic and political factors which influence foreign markets.-Long run benefits of doing business in a country depends on following factors:- Size of market (in terms of demographics)- The present wealth of consumer markets (purchasing power)- Nature of competition. By considering such factors firm can rank countries in terms of their attractiveness andlong-run profit. The time of entry is an important factor to be considered. Entry is early when an international business enters a foreign market before other foreign firms and late when it enters after other international businesses...
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...fulfill the unsaturated field of Export & Import by providing its best of the best knowledge and experience by its dedicated expertise for preparing good quality Exporter and Importer in the International Market and hence contributing to build up an asset pool for the country and the Industry. IIIEM believes in the field of International Business only a strong knowledge base coupled with conceptual clarity and execution skills can ensure desired results as required by the Industry. The Key drivers always tries to enhance teaching module by giving careful attention to each of the individuals relating technical, regulatory and practical issues. Therefore IIIEM Team makes an effort to enhance and expand the global opportunity to all individual by way of providing "Diploma in Import & Export Management Course (DEIM)" in regular courses but has also started initiative by Launching "Distance Learning Module (DLM)". Diploma in Export & Import Management (DEIM) - Regular CourseIIIEM is a renowned name in providing the whole cycle of Import & Export with researched innovative Practical Training and Port Visit. The curriculum of Diploma in Export Import Management includes the following: Topic 1: Basics of International Trade & Export Marketing | * International Trade Basis Selection of Product for Export * Export Pricing * Packaging and Promotion * Distribution Export Correspondence * Negotiation * Setting up of your own export business-Trade Cycles * Market...
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...CHAPTER - 7 Export procedure and documentation Export business occurs between two independent nations for expanding business there are some rules that have to follow. Accepting orders from abroad the sellers send their products with a traditional system under this rule. In this case the sellers are treated as exporter. There are various persons, government or non government organizations are involved with export business at present. These persons or organizations are divided into two criteria based on their nature and functions. Such as direct and indirect export. The direct exporters send their manufacturing products abroad themselves. Some companies run their export management system by setting dealers in abroad. In export business the intermediaries are treated as indirect exporters. These classes of exporters do not manufacture any product but export. Most of them complete the direct export exporting by buying products from home market after receiving orders. They are known as export merchant. Again many exporters work as a percent agent. Many intermediaries export product by making contract with manufacturers. They seek for foreign buyer on behalf of the exporters and take orders. They are known as manufacturers export agent. These kinds of exporters also take commission from buyers if they get chance. It is not the matter the exporters are treated in which name they have to do business of course under the international rule and regulations....
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...separate streams of technology related to information gathering and processing and also related to information transmission. 9. An example is IBM’s agreements with STET, Italy’s state owned Telecommunication Company and Nippon Telegraph and Telephone to develop computer communications services and a joint research venture with Ericson (Sweden) to explore the linking of data-management technology with digital switching technology. 10. It is also observed that within the service sector strategic alliances are less common, but those between hotels, airlines and tour operator’s and between accountants and management consultants are increasing. COUNTERTRADE: Countertrade is a form of international trade in which certain export...
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...EXPORT PROCESS FLOW, PROCEDURE AND DOCUMENTATION Revised on November 10, 2005 Prepared By: Policy & Planning Small and Medium Enterprise Development Authority Ministry of Industries, Production & Special Initiatives Government of Pakistan www.smeda.org.pk HEAD OFFICE LAHORE REGIONAL OFFICE SINDH REGIONAL OFFICE NWFP REGIONAL OFFICE BALOCHISTAN 6th Floor, L.D.A Plaza, Egerton Road Lahore-54792 Tel: 111-111-456 Fax: (042) 6304926 helpdesk@smeda.org.pk 5th Floor, Bahria Complex 2, M.T.Khan Road, Karachi Tel: (021) 111-111-456 Fax: (021) 5610572 helpdesk-khi@smeda.org.pk Ground floor State Life Building The Mall, Peshawar Tel: (091) 9213046-47 Fax: (091) 286908 helpdesk-pew@smeda.org.pk Bungalow No. 15-A Chaman Housing Scheme Airport Road, Quetta. Tel: (081) 2831702/2831623 Fax: (081) 2831922 helpdesk-qta@smeda.org.pk Export Process Flow, Procedure & Documentation Policy & Planning INDEX 1. Introduction to SMEDA 02 2. Role of Policy and Planning 02 3. Flow Chart 03 4. Introduction 05 5. Selection of a Product 05 6. Opening of an Office 05 7. Registration for Export 05 8. Selection of Market 05 9. Quoting a Price 06 10.Signing of a Contract 06 11.Terms of Delivery 06 12.Financing for Exports 07 13.Packing 07 14.Transport 07 15.Insurance 07 16.Documentation 07 17.Post Shipment Documents 08 18.How to Claim Duty...
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...Chinese Exports Increase 46% as Demand From West Rebounds By SHARON LAFRANIERE Published: March 10, 2010 * Recommend * Twitter * Linkedin * Sign In to E-Mail * Print * ------------------------------------------------- Top of Form Bottom of Form Reprints * ShareClose * Digg * Reddit * Tumblr * Permalink * BEIJING — China announced Wednesday that its exports climbed 46 percent in February from a year earlier, a sign that economists said signaled a rebound in consumer demand from the United States and other Western markets. Enlarge This Image Joe Tan/Reuters At factories at Dongguan in Guangdong Province, where labor shortages have occurred, workers made bras for export. It was the third consecutive month of increases in Chinese exports and the fastest growth in three years. Orders from the United States, the European Union and Japan accounted for almost half of the growth, after demand from emerging markets rose in the previous two months. Chinese imports increased 45 percent over last year, led by crude oil, after factories stepped up production. Some economists said the figures indicated China’s recovery was well under way. Tao Wang, head of China research for UBS Securities, predicted that Chinese exports would rebound to the level of 2008, before China was hurt by the global financial crisis. Ms. Wang and others suggested that the robust growth could increase pressure on China to let its...
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...The paper (Thirlwall 1979) represents a model that long term growth rate of countries can be determined by the ratio of export growth and the income elasticity of demand for foreign goods. Particularly, the model uses the balance of payment as an indicator to determine counties growth rate. Base on the article, this essay is separated into three parts, first, introduces the article in relation to Thirlwall’s law. Second, demonstrates the arguments of Thirlwall’s law. Lastly, examines the weakness of the model. The present section briefly introduces the aims of Thrilwall’s paper. Firstly, the paper (Thirlwall 1979) judged the classical approaches by using productivities and factor supplies to explain the different growth rate between countries that was not satisfactory. As the result, the differences could be explained by the constraints on demand; indeed, the balance of payment is the central constraint for an open economy. Then, the paper predicts that the growth rate can be examined by the relation between foreign countries’ rate of income expansion, which are the income elasticity of demand for export and the income elasticity of demand for imports (Grullon 2011). Moreover, the paper used developed countries as evidence to approximate the growth rate by using the balance of payment constraint growth model. The first argument of Thirlwall’s law lies on the constraint on demand instead of supply side, by explaining the differences in growth rate between countries. The...
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