Professional Documents
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International Business: Dr. RKP/ IMI, Bhubaneswar
International Business: Dr. RKP/ IMI, Bhubaneswar
International Business: Dr. RKP/ IMI, Bhubaneswar
(ECO-505)
Session-11
11-2
11-3
Theory of Heckscher-Ohlin
Eli Heckscher
Bertil Ohlin
Multi-Product and Multi-Country Scenario the trade will help all participating countries
Each Country will have some advantage in producing some products Technology and Know-how Natural Resources Climatic Conditions
11-5
Trade Barriers
Tariff barriers Technical Barriers Procurement Policies International Price Fixing Cartels (OPEC) Custom Valuations Transportation Costs Non-Tariff Barriers Quota
Embargo
Subsidies to Local Goods Comparison between Quotas and Tariffs
Intra-industry Trade
11-6
UNCTAD
UNCTAD Established in 1964; Headquarter in Geneva Functions of UNCTAD:
Assisting Developing Countries in Trade negotiations Conducting Investment Policy Reviews in Different Countries Advisory Service on Technology to Developing Countries Trade Analysis and Dissemination of Information Assessing Impact of Trade and Development on Environment Macroeconomic and Development Policy Reviews for Countries Assisting Countries in Modernizing Customs Clearance Procedure Bringing Least Developed countries into the mainstream of WTO Training in Different Aspects of International Trade for Developing Nations Assisting Poor Countries in Formulating Strategies for Development and Poverty Reduction
11-7
WTO Established in 1995; based in Geneva;157 member Countries ITO was proposed in 1944 in Bretton Woods Conference GATT was established in 1947 which was considered Rich Mens Club Subsequent to GATT, UCTAD was set up and finally WTO to reiterate the
objectives of GATT
Objectives:
Promote Trade Flows by encouraging predictable trade policies Expanding Production and Optimal usage of World Resources Sustainable Development Positive steps to ensure LDCs have larger Trade Shares Procedures for Resolving Trade Disputes among Members
11-8
Functions of WTO
Administering and Implementing Multilateral and Plurilateral Trade Agreements Acting as a Forum for Multilateral Trade Negotiations Overseeing National Trade Policies Cooperating with international institutions in global policy Making Maintaining Trade Related Database Acting as a watchdog of international trade; Examining Trade Regimes of members Policy Regarding World Economic Environment Policy Regarding Contemporary Issues
11-9
11-10
Principles of WTO
Transparency MFN Treatment National Treatment: Non Discrimination within a Country
11-11
11-12
11-13
The WTO Agreement on TRIPS Protection and Enforcement of Intellectual Property Rights TRIPS came into being after intense lobbying from US, supported by EU members, Japan and other Developed nations Ratification of TRIPS is compulsory requirement for WTO membership Strict Enactment of TRIPS is a must to gain access and benefits opened up by WTO States can be disciplined - WTOs Dispute Settlement Mechanism
11-15
Requirements of TRIPS
Copyright term must extend by 50 years unless based on the life of the author Copyright must be granted automatically; not through formality Computer programs must be regarded as literary works and receive same
terms of protection
Patents must be granted for inventions in all fields of technology provided they meet all other patentability requirements Exceptions to exclusive rights must be limited
11-17
TRIMs Agreements under WTO TRIMs Rules for foreign Investors (Part of Industrial Policy)
Ban on Local Content Requirements Rules Ban on Trade Balancing Rules
Restrictions on Preference on Domestic Firms Ensure that International Firms operate smoothly in foreign Markets Trade Related Investment Measures FDI Movements to all Countries
11-18
GATS Multilateral Legally Enforceable Rules covering Services Liberalization on movement of Services to Facilitate Trade Four Modes of GATS Mode-1: Cross Border Trade: Services from the territory of one Country to another Mode-2: Consumption Abroad: Travel &Consume the service in another Country Mode-3: Commercial Presence: Covers services by setting up a professional
Establishment
Criticism of GATS
11-19
Dispute Settlement Understanding Legally Binding Disputes regarding Dumping and Grant of Subsidies Since Dumping is done by a firm, WTO can not take action against the country, but ensures that country act against a firm Imposition of Anti Dumping Duty Based on calculations on Damages caused due to Dumping Anti Dumping Measures Advantages and Disadvantages of a country Joining WTO
11-20