...WTO ACCESSION CHALLENGES: CUSTOMS UNION OF RUSSIA, BELARUS AND KAZAKHSTAN AS THE STEP TOWARDS THIS “DREAM” EXECUTIVE SUMMARY WORLD TRADE ORGANIZATION We live in the twentieth century – a time of dynamic changes in the Global Economy, associated with globalization. In International Trade Arena, the vast majority of the countries choose the free trade policy, which develops step by step: from Free Trade Area, a Custom Union into Common Market and Monetary and Economic Union. Politicians and scientists believe that in 20-30 years Trade World will be subdivided into 2-3 intercontinental preferential zones with its own rules and free trade between the parties, but with external custom barriers in relation to other blocks or still will open the ways for mixing of regionalism and multilateralism based on common objectives and principles. Obviously, the development of the World economy and trade will lead to the formation of a single Global Free Market with the agreed rules and disciplines, which will be applicable to all countries. The dominant position is such a direction takes the World Trade Organization (WTO). It was established on December 8, 1994 and began operating on 1 January, 1995 and is known to be a successor of the General Agreement on Tariffs and Trade (GATT). Here, a distinctive feature and the goal of WTO is the creation of international trade rules and disciplinary measures to ensure the conditions of a free international trade, based on mutually beneficial conditions...
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...To what extent do organizations like the IMF, WTO, and World Bank challenge the nation state’s ability to shape domestic economic and social policy? The World Trade Organization welcomed with open arms Russia in 2012. This would open up trade possibilities for many countries in Asia, Europe and even the US. Some US companies, like Caterpillar, are already exporting a substantial amount to Russia. However, many in Congress do not want to grant Russia permanent normal trade status because of the way Russia has handled many political situations. As Andrew Kramer brought out in his NY Times article, “Congress has balked at the Obama administration’s request to grant Russia permanent normal trade relation status”. This could lead to retaliation by Russia against US companies by applying higher tariffs on their imported goods. According to Mr. Kramer’s article, the US company Caterpillar has sold 2 billion dollars worth of equipment to Russia in the last 5 years. However, President Obama’s administration, as well as his predecessors, has pushed to open up more trade with Russia. The WTO requires that all member nations have applied the same trade rules. Therefore, since the US is the largest financial contributor to the WTO, it would seem to be expected that it would play by the rules. So the WTO certainly has an effect on how the US constructs it trade policy with Russia. The pressure from inside the country, especially from those who think that Congress’ inaction could cost US...
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...World Trade Organization CASE ANALYSIS Table of Contents 1. Review the articles and explain what the core of the disputes is.................. 1 2. Find and present at least three other disputes, which are at the agenda of the Dispute Settlement Committee of WTO. ........................................................ 2 a) Russian Federation- Measures on the importation of live pigs, pork and other pig products from the European Union .................................................. 3 b) Brazil- Certain measures concerning taxation and charges ...................... 4 c) Anti-dumping duties on light commercial vehicles (LCV) from Germany and Italy ............................................................................................................... 5 3. Explain the term “dumping prices”. ................................................................. 6 4. Which other commodities are object of protectionist measures? ................ 7 References ............................................................................................................. 9 1. Review the articles and explain what the core of the disputes is. The four investigated articles deal with the influence of governments on particular industries and how they try to strengthen and on the same time protect the competitiveness of domestic players. Three of the four articles highlight China’s protectionism on its market for cultural products. Protectionism can be defined as certain government...
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...Problems of the Russian agriculture Difficulties in the development of domestic agriculture have been and remain a consequence of underestimating the state's role in the formation of a national agricultural policy, the lack of the necessary logistical and financial support for the industry. This led to a skewed when domestic food in relation to the subsidized import was uncompetitive. It has become more expensive imported and widely displaced from the Russian market. Production of high-quality and productive agricultural machinery is also not well developed in Russia. Farmers choose the best and buy the imported tractors and seeders. Russia has also developed the production of high quality and productive agricultural machinery; farmers choose the best and buy the imported tractors and seeders. Is it possible to change the situation? It is already changed. Prospects for the development of agriculture in Russia A powerful impetus for renewing the country's economy, its improvement and promotion of economic development have become the priority national projects, including "Development of agriculture (agriculture)", which in a short time had to solve the most pressing problems of the village. In recognition of this country's agro-industrial complex national priority should be seen as a turning point for farmers to labor, agriculture, as a confirmation that it is one of the main sectors of the economy, ensuring the stability of the lives of citizens and the country's food security...
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...the economic theory, the change was for government to consider the ways to set economic purpose and use their strength to direct the economy to try achieving those objectives. The government also followed the trend of selling off business enterprises to private firms in the anticipation that competition and the profit motive will increase their success achieved in the performance. Lastly, it’s the globalization. The increased of international trade and investment have decreased the gap of cultures, technologies and economic decision making. As the globalization carried on, the economies had also become more very much alike. Body The intention of this essay is test the benefits and failures of Russia's transition. The change of Russia shifting from planned to market system has brought many benefits. The graph below shows that the Russia’s GDP has increased throughoutly since 2000. Source : www.tradingeconomics.com (world bank) On the other hand, the productivity was also increasing. It is also a major factor for economic growth. There were evidence to it since middle of 19th century. The economic growth was mushrooming in the 20th century. It was because of the substracted inputs of labor, energy, materials, and land of economic output, and also the broader markets for various outputs. (Dr. Jean-Paul Rodrigue, 1998) The graph below shows the level of productivity has increased. Source : www.tradingeconomics.com...
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...SATAKUNNAN AMMATTIKORKEAKOULU SATAKUNTA UNIVERSITY OF APPLIED SCIENCES Anna Tulinen FACING THE CHALLENGES IN EXPORTING TO RUSSIA SCHOOL OF BUSINESS RAUMA Degree Programme in International Business and Marketing Logistics 2007 TIIVISTELMÄ VENÄJÄN VIENNIN HAASTEIDEN KOHTAAMINEN Tulinen, Anna Satakunnan ammattikorkeakoulu International Business and Marketing Logistics Liiketalouden Rauman yksikkö Tammikuu 2007 Tanhua, Daniela Sivumäärä: 85 Avainsanat: kansainvälinen kauppa, vienti, Venäjä Opinnäytetyön aiheena on Venäjän viennin ongelmien tutkiminen. Työ pitää sisällään teoreettisen osuuden, jonka pohjalta empiirinen tutkimus on tehty. Tarkoituksena oli selvittää minkälaisia ongelmia pienet ja keskisuuret suomalaiset yritykset kohtaavat viedessään tuotteitaan Venäjälle. Venäjän WTO-jäsenyysneuvottelut ovat loppuvaiheessaan ja työn tarkoituksena on myös eritellä niitä etuja, joita tuo jäsenyys saattaa tuoda mukanaan Venäjän kauppaa käyville yrityksille. Teoreettinen osuus kuvailee kansainvälistä kauppaa ja vientiä. Osassa, joka käsittelee kansainvälistä kauppaa, kuvaillaan lyhyesti kansainvälistä markkinointi ympäristöä sekä luetellaan kansainvälisen kaupan esteet ja ne syyt, joiden mukaan valtiot pyrkivät estämään kansainvälistä kauppaa. Kappaleen loppu keskittyy käsittelemään logistiikan tärkeyttä ja ongelmia kansainvälisessä kaupassa. Viennin osuudessa käsitellään viennin peruskäsitteitä sekä kansainvälisen kaupan dokumentaatiota ja tullin roolia. Viitekehys yhdistää...
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...Implications of the Ukrainian Crisis for Trade Relationships of the EU with Russia Economic Policies of the European Union Gartnar Marko | 19486522 | Marmai Martina | 19131311 | Mladenović Kosta | 19821606 | Executive Summary The aim of this research assignment is to provide an assessment of the effects on trade relationships between the EU and Russia stemming from the so-called “Ukrainian crisis.” The term points at the Russian military intervention in Ukraine, and the public response that this event generated. In particular, the analysis will regard the repercussions on Euro-Russian trade due to the Council’s diplomatic reply to the violent annexation of the Crimean peninsula by the Russian Federation. Since March 16th, when - with the unconditional support of Russia - the referendum for the independence of Crimea took place, the events in Ukraine escalated, giving rise to a number of restrictive provisions which, increasing in scope and gravity, aimed on one side to discourage military intervention by Russia, while on the other punished illegal misappropriation of Ukrainian public property. Such sanctions may not have played an important role, were it not for the current shaky state of the Russian economy. Nevertheless, that of sanctions is a two-sided sword, and the European Union, barely stepping on the road to recovery, can’t exactly afford being too picky when it comes to deciding who to do business with. The high level of interconnectedness and dependence...
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...Master of Business Administration Paper Title: Business in Global Arena Final Examination Presented by: Mohamed Mohamed Abd-ElMeguid MBA#: Intake Number #58 Course Title: Business in Global Arena Module: Core Courses Instructor: Dr. Hein Roelfsema Course Delivery Date: November 2010 Date of Submission: 14- November -2010 Table of Contents Question 1: 3 Economic Profile and market seeking/resource seeking recommendations 3 Psychic distance that Egyptian expatriate managers are likely to face 5 Question 3: 6 Part 1: 6 Part 2: 6 Question 5: 8 Hypothesis 1: 8 Hypothesis 2: 8 Question 1: Economic Profile and market seeking/resource seeking recommendations |Indicator |Kenya |Tanzania |Uganda | |GNI |$60.27 Billion |$52.05 Billion |$36.08 Billion | |GNI per capita in PPP dollars |$1,550 |$1,260 |$1,140 | |GDP |$1,600 |$1,400 |$1,200 | |GDP Growth Rate |2.6% |6% |5.3% | |HDI ...
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...012-IBE-CaseStudies.docx Academic Year 2011-2012 International Business Environment Jean-Guillaume DITTER, PhD Groupe ESC Dijon Bourgogne – Burgundy School of Business SUPPORT DOCUMENT I - CASE STUDIES The texts making-up this document review and emphasize significant issues covered during the sessions. The questions asked at the beginning of each set of texts are meant to help students identify the issues that they should pay attention to. Students will work in teams on one single case study (see class outline for number of students per team). Each team will produce a presentation slideshow of its case study (7-10 slides per presentation, depending on the size of the case). Slideshows will be presented orally during sessions, according to the class outline (1520mn per presentation). Each team member will actively participate in his/her team presentation. Page 1 of 35 012-IBE-CaseStudies.docx CONTENTS Case Study 1. Text 1. Text 2. Text 3. Case Study 2. Text 4. Case Study 3. Text 5. Text 6. Text 7. Case Study 4. Text 8. Text 9. Text 10. Text 11. Text 12. Text 13. Case Study 5. Text 14. Text 15. Text 16. Text 17. Text 18. Text 19. Case Study 6. Text 20. Text 21. Case Study 7. Text 22. Text 23. Text 24. Text 25. Chinese Mercantilism .................................................................................................... 3 Chinese New Year ............................................................................................................
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...The continuing economic slowdown in EU, Japan and the US emphasises the role of BRICS (Brazil, Russia, India, China and South Africa) as a new global growth engine, an alternative export market, and a key sourcing hub. The economic might of BRICS can be gauged from the fact that it accounted for 42.3 per cent of global population, 18.2 per cent (25.7 per cent on PPP basis) of global GDP, 17.8 per cent of FDI and 16.3 per cent of global trade in 2010. However, despite the existence of the huge trade (and investment) potential on account of similar consumer preferences, comparable per capita income, and often complementarities of resource endowment, the intra-regional trade among BRICS nations isn't even 10 per cent of their total trade. INDIA'S TRADE When it comes to India's trade (export and import taken together) with the BRICS, it has grown from roughly US$ 9 billion in 2000-01 to US$ 106 billion in 2010-11. As a result, its share in India's merchandise trade has almost doubled (from 9.4 per cent to 17.1 per cent) in this period. This is quite in contrast to the share of India's traditional trading partners — EU-27 and North America — which has declined from 36.5 per cent in 2000-01 to 22.6 per cent in 2010-11. When it comes to India's export, this decline (in the share of EU-27 and North America) is sharper i.e. 29.3 per cent in 2010-11 from 46.3 per cent in 2000-01. This underlines the growing importance of the BRICS region as a key export market vis-à-vis the developed...
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...KEY TERM AND WHY I AM INTERESTED IN IT While studying Russia for the GBCA, it has become increasingly obvious that everyone generally feels that Russia’s main (and some may say only) contribution to global trade is in raw materials (Lally, 2012). I am curious to learn more about raw materials and what makes Russia such a heavy player in this arena. EXPLANATION OF THE KEY TERM Raw materials are “inventory items that are used in the manufacturer’s conversion process to produce components, subassemblies, or finished products” (Satterlee, 2009). These inventory items are “unfinished goods” such as “a steelmaker uses iron ore and other metals in producing steel” (Raw material, 2006). When determining whether to conduct business in a particular region, the availability and relative proximity to raw materials should be a determining factor in the decision making process. While it can be beneficial for emerging businesses when the cost of raw materials is low in a particular region, it can become financially problematic when the vast majority of a nation’s economic system is wrapped up in the production and cost of raw materials. MAJOR ARTICLE SUMMARY This article is a general overview of the Russian economy as of December 2008 that reflects on the causes for a “slowdown” the preceding October. Even though there was a “slowdown” in the economy, growth was still taking place as evidenced in the GDP. For October of that year, GDP growth was 5.9% relative to the 7.7% seen in...
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...World Trade Organization: The art of a little give and take Historical Overview of the WTO The World Trade Organization (WTO) was founded in 1995 as the predecessor to the General Agreements on Tariffs and Trade (GATT). The GATT was developed in 1947 on a provisional base after World War 2; it was not started as an international organization, but rather an inter-governmental treaty. Instead of being made up of participating members, such as the WTO, the GATT consisted of contracting parties. As stated in the preamble of the GATT-1947, the objectives of the contracting parties include ‘raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand ,developing the full use of the resources of the world and expanding the production and exchange of goods’(GATT, 1994a: 486). It continues by stating that reciprocal and mutually advantageous arrangements involving a substantial reduction of tariffs and other barriers to trade as well as the elimination of discriminatory treatment in international trade will contribute to the realization of these objectives. So in short the role of the GATT, was (and still is) to facilitate the reduction of barriers of trade and ensure greater equality with respect to conditions of market access for contracting parties. Through the negotiations made by the original 23 countries of the GATT, with additions of over 50 countries, came the charter for the International Trade Organization...
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...Tiffany M. International Business BRIC – Russia Question 1 What are the current economic indicators for the assigned country that clearly demonstrate that this country is on a consistent growth path and that this will play an important role in the 21st century world economy? The financial crisis of 2008, lead to a deep recession in Russia in 2009 due to a severe decline in oil prices. “The GDP fell by 7.8 percent and the number of unemployed increased from 4 million in the summer of 2008 to 7 million (or 9.3 percent) at the beginning of 2010. Between October and December 2008, production experienced its worst drop in the history of Russia, plummeting by a record 19 percent. The official inflation rate, which reached over 14 percent in 2008, remains high at 6.1 percent.” (Weiss, 2012) Russia was hit hard by this economic crisis, however although recovery was slower than the other BRIC countries, Russia is showing much potential for further growth. Because of supply constraints, the price of Urals oil has gone past $125 USD per barrel for the first time since 2008. The high oil prices have bolstered Russia’s economy in the form of large export revenues, active fiscal revenues, and a rising stock market. “…The Central Bank of Russia has added to its stock of foreign reserves, unemployment has returned to its pre-crisis levels of around 6.5 percent, and wages have grown at double-digit rates in early 2012. In February 2012, headline inflation was 3.8 percent, which...
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...Is Russia a suitable home market for TCL? How does it compare to other emerging markets? Yes because… * New MNE expected to enter Russia on its accession to the WTO (TCL seeked to grow revenues from the enterprise segment, with stickier relationships and better margins.) * highlights commitment to extend global footprint into the emerging markets(1) Emerging market focus: Sought to position itself as the go-to provider of services when large companies sought to expand in the emerging market regions. * TLC can offer latest technology and no legacy systems to the country, it has good and modern infrastructure. (Since TCL’s infrastructure had been built in the 21st century, it could offer customers latest technologies (no legacy systems) * GDP growth 4% vs 5.5 % Telecom industry * Gravity model 2011 US billion (GDP) | Distance (kms) | India : 1887 | India/Russia : 4986 ; India/Bra:14775; India/Indone : 4485 | Russia: 1857 | T(IR)= 702.7996 | Brazil : 2474 | T (IB) = 315.9687 | Indonesia : 846 | T (II)=355.9424 | | | No because * Biggest territorial extension. Negative fact because of Telecom reachability. TLC lacks deep-in country infrastructure, making the company less competitive for networks requiring many sites in each country. Because of Russia’s extension and current infrastructure, TLC needs to consider additional investment CAPEX to target untapped international connectivity market through fiber network. * Russia...
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...The World Trade Organization (WTO) is an international body whose purpose is to promote free trade by persuading countries to abolish import tariffs and other barriers. As such, it has become closely associated with globalization. The WTO is the only international agency overseeing the rules of international trade. It polices free trade agreements, settles trade disputes between governments, and organizes trade negotiations. WTO decisions are absolute and every member must abide by its rulings. So, when the US and the European Union are in dispute over goods, it is the WTO, which acts as judge and jury. WTO members are empowered by the organization to enforce its decisions by imposing trade sanctions against countries that have breached the rules. Based in Geneva, the WTO was set up in 1995, replacing another international organization known as the General Agreement on Tariffs and Trade (Gatt). Gatt was formed in 1948 when 23 countries signed an agreement to reduce customs tariffs. The WTO has a much broader opportunity than Gatt. Whereas Gatt regulated trade in merchandise goods, the WTO also covers trade in services, such as telecommunications and banking, and other issues such as intellectual property rights. Membership of the WTO now stands at 153 countries (as at July 2008). China formally joined the body in December 2001 after a 15-year battle. Russia wants admission, but must first convince the EU and US that it has reformed business practices. (Daniels...
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