Commodity Price Stabilization in International Business

Many developing nations exports are concentrated in only one or a few primary products and thus unstable export markets, worsening terms of trade, and limited access to world markets for the products can significantly reduce export revenues and seriously disrupt domestic income and employment level. In addition, many developing nations feel that developed nations tend to insist that developing nations open their markets to industrial products from the developed world, yet refuse to open their markets to agricultural goods from the developing world. For example, United States have used aggressive antidumping and countervailing duties to limit access to their markets. As noted, the export prices and revenues of developing countries can be quite volatile. In an attempt to stabilize export revenues and prices, International Commodity Agreements (ICA) have been formed by producers and consumers of primary products about matters such as commodity price stabilization, assuring adequate supplies to consumers, and Continue reading

Advantages and Disadvantages of FII Flows into a Country

Foreign Institutional Investors (FIIs) is used to denote an investor; it is mostly of the form of an institution or entity which invests money in the financial markets of a country. The term FII is most commonly used in India to refer to companies that are established or incorporated outside India, and is investing in the financial markets of India. These investors must register with the Securities and Exchange Board of India (SEBI) to take part in the market. Foreign investment refers to investments made by residents of a country in another country’s financial assets and production processes. After the opening up of the borders for capital movement, foreign investments in India have grown enormously. It affects the productivity factors of the receiver country and has the potential to create a ripple effect on the Balance of Payments of the country. In developing countries like India, foreign capital helps in Continue reading

Advertising Budget

The size of the advertising budget can have an impact upon the composition of the advertising mix. In general, a limited promotion budget may impel the management to use types of promotion that would not be employed otherwise, even though they are less effective than the others. Industrial firms generally invest a larger proportion of their budgets in personal selling than in advertising, while the reverse is true of most producers of consumer goods. Organizations with small budgets may be forced to use types of advertising that are less effective than others. Some marketers find it necessary to restrict their efforts primarily to personal selling and publicity. There are organizations with small promotion budget which take the opposite course of action. They concentrate on advertising and sales promotion, and neglect other methods. Some marketers advertise in expensive ways (through classified advertisement in newspapers and magazines) and spend virtually nothing on Continue reading

Parenting Fit Matrix

Normally multibusiness companies comprise two elements: business units, which could  theoretically be independent companies, relating directly to the capital markets; and one or more layers of other  line and staff managers above or outside the businesses, which we refer to collectively as “the parent”. The businesses are directly involved in value creation: they produce goods and services and attempt to sell them for more than their cost. But the parent is involved much less directly. Its ability to create value depends  largely on its influence on the businesses and the way it supports them. The parent acts as an intermediary between the businesses and outside investors. It clearly incurs costs, both  direct and indirect. It is therefore justified only if, through its influence, it creates more value than these costs. If  it does not, businesses and shareholders would be better off without it. This bottom-up view challenges the very  existence Continue reading

Research Variables – Dependent and Independent Variables

Research is the foundation of any science, including both hard sciences such as physics, chemistry and the social sciences such as psychology, management and education. The steps and process involved in the research can vary depending on the type of research being done and the hypothesis being tested. Research methods such as Naturalistic observation and surveys are often less structured, where as experimental methods are more structured. Depending upon what is observed or experienced, new theories are developed. There are aspects of a theory or aspects of a study that can change or vary as part of interaction within the theory, defined as variables. Variables are anything that can change of effect the results of a study. In an experimental method, the experiment is conducted by changing the value of one variable and measuring the changes in another variable while holding or assuming surroundings constant. There is no limit to Continue reading

Newspapers as an Advertising Medium

In the last nearly 200 years, newspapers have remained a very important mass media for advertising. With the appearance of radio, and subsequently television, there has been some change in the reading habits of people. TV presented a combination of some very desirable characteristics, not offered by any other media, and became a primary source of entertainment, news, and other types of information for a very large number of people. Print media has successfully met the challenge posed by television because it has certain advantages not offered by broadcast media. In spite of tremendous popularity of TV as an advertising medium, newspapers command a position of significance among advertisers. Newspapers are an important part of our everyday life and a major source of information for a large number of readers. Newspapers are available to the masses at a fraction of their cost because advertising revenues from large to small advertisers Continue reading