Contemporary issues in International Trade Presenters : Anil Gupta Ankit Khandelwal Konark Gupta Pranshu Chanana Saurav Agrawal

Various issues occur in international trade which cannot be overseen Issues may be categorized in – Economic issues Technical issues Social issues Cultural issues Environmental issues

Economy structure differences Different rules and regulations Policies, taxes, duties and freedom differences ECONOMIC ISSUES

Economies of Scale Spread total cost over greater range of out put that result in lower unit cost. Internal: Technical, Commercial, Financial, Managerial, Risk Bearing. External: Reputation, Infrastructure, Supply of skilled labor, Training facilities.

Competition Existing players in the market Product and Pricing structure Goodwill and Reputation level Strategies to kill new enterance Regulatory Reforms Different policies for different nations

Non-Tariffs Barriers Quotas Import-Export license Import-Export state trading enterprises Exchange Rate Management Policies Tariffs Barriers In monetary terms Taxes, duties etc. at the time of export and import

Trade agreements Companies fall into trade agreements with other countries for their trade benefits. But it causes difficulties for non member countries to trade with the countries in contract. Eg. ATA, FTA(NAFTA, SAFTA, LAFTA), ETU.

CULTURAL ISSUES “Economic globalization doesn’t mean Cultural globalization”

Briefing Integrated system of learned behaviour patterns. Understanding culture involves understanding people. Different – different people, different – different thoughts and different culture. Large cultural differences between nations.

Major issues Language Not all people know all languages Difficult to trade with countries with less frequently spoken languages like Brazil, Mexico, Beliefs and values People of different origins have different beliefs Values differ from place to place in terms of priorities, choice of product or service etc. Difficult to alter people’s beliefs.

Demographic Location or distance barrier Barrier of natural climatic conditions Lifestyle of people Religious barriers Religion of people and their respective beliefs differ widely from place to place Impossible to trade against religious values Impossible to convince people against their religion

TECHNICAL ISSUES Intellectual Property Rights Patents and Copyrights International Standards ISI, WHO, FPO etc. Transparency Transparency of manufacturing process Technology used The use of technology for production and other processes. Policies

Social Issues Labour Law Labour rights and renumeration Child labour Barrier to trade products causing threat to human life and national security Arms and ammunition Drugs

ENVIRONMENTAL ISSUES Environment plays a very critical role in international trade. Environment protection is a major concern. Various laws and regulations have been formed for environment protection globally (Environment Protection Law, Carbon trading etc.) Trade should not adversely effect the environment.

Incorporated Environmental Standards - like Carbon Trading, GATT, Montreal Protocol on substances that deplete the ozone layer Protection of Environment - Environment friendly manufacturing process Protection of Animal and Plant Life - Biosafety Protocol 1999 & Animal Protection Act eg. Turtle Excluder Devices (TED), Dolphin Tuna Decision -Convention on International Trade in Endangered Species

Protection of human life and health Food Safety Issues -Sanitary and Phytosanitary measures by WTO -WHO standards

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