I want kick off this with some headlines making waves which I feel have true business globalization feel to them.
Lets add such to keep us all updated of happenings in the business world.
1. Rio’s Albanese Gets ‘Last Chance’ With China Bailout - Tom Albanese Rio Tinto's CEO, the world’s third-biggest mining company, are under attack from Australian politicians because the plan would hand partial ownership of some mines and plants to a state-owned Chinese firm
Comments: A Chinese state owned firm staking claim to 18% of Rio Tinto group. What better way of true globalization
MERCOSUR: Mercosur is a trading zonebetween brazil argentina, uruguay and paraguay founded in 1991 by the treaty of Ausnicion. Its main purpose is to promote free trade and the fluid movement of goods, peoples and currency.
3PL: 3rd Party Logistics is the supply chain practice whre one company can outsource its one or more logisitces functions. The 3pl provider manages and executesthese particular logisticsfunctioning using its ownassests and resourceson the behalf of the client company.
Generally accepted accountting principles commonly abbreviated as GAAP are basically accounting standards used to perpare financila statements of various public and non-public organizations. Its main objective is to help investors n making rational investing decisions in order to invest in any of the companies of his choice.
PPP- Purchasing power parity- Its means that exchange rates between curriencies are in equilibrium when their purchasing power are same in each of these two countries. The basis os PPP is "the law of one price". It means that at whtever price you are enjoying goods and services in one country then that same price should exist in the other country for the same Goods and Services.
FREE TRADE AREA- FTA is basically group of countries that have come togehter to have a common platform where they can trade freely by eliminating the tariffs and quotas system on Goods and services. Their rules and regulation are totally different from those of non-members of FTA.
FREE TRADE AREA- FTA is basically group of countries that have come togehter to have a common platform where they can trade freely by eliminating the tariffs and quotas system on Goods and services. Their rules and regulation are totally different from those of non-members of FTA.
NAFTA- North American Free Trade Agreement. On January 1, 1994, NAFTA betwwen america, canada and Mexico came into force. It has eleminated all traffis and restrictions coming on way betwwen trade. Nafta created world's largest free trade area which now account to 444million people producing $17 trillion worth of goods and services.
SAFTA- South Asian Free Trade Agreement- SAARC countries are memebers of this agreement i.e. INDIA, srilanka, pakistan,maldives,nepal,bhutan,bangladesh. The objective of this trade is to promote mutual trade and economic coperation amont contracting countries.It was signed in 2004 in Islamabad, pakistan.
LAFTA- Latin american free trade agreement- The signatories hoped to create a common market in Latin America and offered tariff rebates among member nations. LAFTA came into effect on January 2, 1962. When the trade association commenced it had seven members and the goal of the LAFTA is the creation of a free trade zone in Latin America. It should foster mutual regional trade among the member states, as well as with the U.S. and the European Union. One very important Limitation of Lafta is that it only refers to GOODS and not to SERVICEs.
AFTA- ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries. This agreement was signed on 28january ,1998 in Singapore. The primary goals of AFTA seek to: Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and Attract more foreign direct investment to ASEAN.
ASEAN- Association of South East Asian Nations. It was founded on 8th august ,1967. In staring its has 5 member countries, Malaysia, singapore, Indonesia, Thailand nad Philippines. The main purpose of setup is to advance mutual interest betwen the regions. THe interest includes economic Growth, cultural and social progress and regionl piece and security. At present the ASEAN main concrn is to make the regions competitive force on global stage. For this tey are planningi to make ASEAN region as single market production base by ASEAN free trade agreement, in short form AFTA.
4PL- 4th Party Logistics- Out sourcing is the best options for the companies suffering from economic downturn. Business outsourcing done for many reasons- increase cash flows, improve competitive advantage, reduce turnover, business transforming, reduce invetory ,turn fixed cost into variable cost and many more.3PL earned a good name in the field. Whether its transporting,warehousing or forwarding 3PL has tried to master each nad every activities. Customer alwasys wanted to reduce cost and this can only be possible from 3PL. But at some point 3PL fail to provide wht they are intented to do. International 3PLs doesnt konw how to provide domestic services and domestic ones dont know how to international standards some of them have failed to copup with the increased competition. 4Pl see the process and wht is required to make it success.4Pls has better understanding of the complexity of the customer's requirements, present viable solutions and to have customer satisfaction and retention.
Foreign EXchange RISK - I would like to explain this concept with the help of an example. Lets suppose DOW Chemicals of U.S. want to set up its production unit in China. They have to invest entire amount in terms of American dollars in starting. After setting up lets suppose that there main part of sales comes from the Chinese market only. If after some years the chinese govt. faces the devaluation of its currency as compared to U.S. dollars then in that case the DOW Chemicals will face the risk wht we call as "foreign Exchange Risk". Because they will not be able to get equivalent money of wht they have invested in the Chinese market.
CARTEL This is a group of producers who have decided on how the markets is divided between them so as to charge higher prices and make supernormal profits.
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Innovation; Strategy; Leadership; Entrepreneurship; Business in general; Recruitment; Aspirations; Resipicense; and Youthfulness.
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15 comments:
I want kick off this with some headlines making waves which I feel have true business globalization feel to them.
Lets add such to keep us all updated of happenings in the business world.
1. Rio’s Albanese Gets ‘Last Chance’ With China Bailout - Tom Albanese Rio Tinto's CEO, the world’s third-biggest mining company, are under attack from Australian politicians because the plan would hand partial ownership of some mines and plants to a state-owned Chinese firm
Comments: A Chinese state owned firm staking claim to 18% of Rio Tinto group. What better way of true globalization
MERCOSUR:
Mercosur is a trading zonebetween brazil argentina, uruguay and paraguay founded in 1991 by the treaty of Ausnicion.
Its main purpose is to promote free trade and the fluid movement of goods, peoples and currency.
3PL:
3rd Party Logistics is the supply chain practice whre one company can outsource its one or more logisitces functions. The 3pl provider manages and executesthese particular logisticsfunctioning using its ownassests and resourceson the behalf of the client company.
Generally accepted accountting principles commonly abbreviated as GAAP are basically accounting standards used to perpare financila statements of various public and non-public organizations. Its main objective is to help investors n making rational investing decisions in order to invest in any of the companies of his choice.
PPP- Purchasing power parity- Its means that exchange rates between curriencies are in equilibrium when their purchasing power are same in each of these two countries. The basis os PPP is "the law of one price". It means that at whtever price you are enjoying goods and services in one country then that same price should exist in the other country for the same Goods and Services.
FREE TRADE AREA- FTA is basically group of countries that have come togehter to have a common platform where they can trade freely by eliminating the tariffs and quotas system on Goods and services. Their rules and regulation are totally different from those of non-members of FTA.
FREE TRADE AREA- FTA is basically group of countries that have come togehter to have a common platform where they can trade freely by eliminating the tariffs and quotas system on Goods and services. Their rules and regulation are totally different from those of non-members of FTA.
NAFTA- North American Free Trade Agreement. On January 1, 1994, NAFTA betwwen america, canada and Mexico came into force. It has eleminated all traffis and restrictions coming on way betwwen trade.
Nafta created world's largest free trade area which now account to 444million people producing $17 trillion worth of goods and services.
SAFTA- South Asian Free Trade Agreement- SAARC countries are memebers of this agreement i.e. INDIA, srilanka, pakistan,maldives,nepal,bhutan,bangladesh. The objective of this trade is to promote mutual trade and economic coperation amont contracting countries.It was signed in 2004 in Islamabad, pakistan.
LAFTA- Latin american free trade agreement- The signatories hoped to create a common market in Latin America and offered tariff rebates among member nations. LAFTA came into effect on January 2, 1962. When the trade association commenced it had seven members and the goal of the LAFTA is the creation of a free trade zone in Latin America. It should foster mutual regional trade among the member states, as well as with the U.S. and the European Union.
One very important Limitation of Lafta is that it only refers to GOODS and not to SERVICEs.
AFTA- ASEAN Free Trade Area (AFTA) is a trade bloc agreement by the Association of Southeast Asian Nations supporting local manufacturing in all ASEAN countries.
This agreement was signed on 28january ,1998 in Singapore.
The primary goals of AFTA seek to:
Increase ASEAN's competitive edge as a production base in the world market through the elimination, within ASEAN, of tariffs and non-tariff barriers; and
Attract more foreign direct investment to ASEAN.
ASEAN- Association of South East Asian Nations. It was founded on 8th august ,1967. In staring its has 5 member countries, Malaysia, singapore, Indonesia, Thailand nad Philippines. The main purpose of setup is to advance mutual interest betwen the regions. THe interest includes economic Growth, cultural and social progress and regionl piece and security.
At present the ASEAN main concrn is to make the regions competitive force on global stage. For this tey are planningi to make ASEAN region as single market production base by ASEAN free trade agreement, in short form AFTA.
4PL- 4th Party Logistics- Out sourcing is the best options for the companies suffering from economic downturn. Business outsourcing done for many reasons- increase cash flows, improve competitive advantage, reduce turnover, business transforming, reduce invetory ,turn fixed cost into variable cost and many more.3PL earned a good name in the field. Whether its transporting,warehousing or forwarding 3PL has tried to master each nad every activities. Customer alwasys wanted to reduce cost and this can only be possible from 3PL.
But at some point 3PL fail to provide wht they are intented to do. International 3PLs doesnt konw how to provide domestic services and domestic ones dont know how to international standards
some of them have failed to copup with the increased competition.
4Pl see the process and wht is required to make it success.4Pls has better understanding of the complexity of the customer's requirements, present viable solutions and to have customer satisfaction and retention.
Foreign EXchange RISK - I would like to explain this concept with the help of an example. Lets suppose DOW Chemicals of U.S. want to set up its production unit in China. They have to invest entire amount in terms of American dollars in starting. After setting up lets suppose that there main part of sales comes from the Chinese market only. If after some years the chinese govt. faces the devaluation of its currency as compared to U.S. dollars then in that case the DOW Chemicals will face the risk wht we call as "foreign Exchange Risk". Because they will not be able to get equivalent money of wht they have invested in the Chinese market.
CARTEL
This is a group of producers who have decided on how the markets is divided between them so as to charge higher prices and make supernormal profits.
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