International Business Management

Free Trade Zones – Definition and Meaning

In simple words, free trade means free international trade. The classical economists like Adam Smith, Ricardo and others strongly  favored  free trade and this doctrine held the field for nearly one hundred years. How ever later, the countries all over the world began to adhere to the policy of imposing restrictions in one form or other.

History and Development of Free Trade Zones

During the last 20 years, the labor charges in developed countries have increased substantially. According to a recent estimate, the labor cost is nearly 1 USD per hour for semi-skilled workers in most European Countries, U.S and Japan.… Read the rest

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Role of Clearing and Forwarding (C&F) Agents in Exports

Shipping is the most commonly used method of  dispatching  goods to a foreign country. Under shipment, one shall cover all the procedural aspects from the time the product meant for export leaves the factory site till it is loaded on board the ship and the relevant documents are collected from the shipping company. Since the type of work involved is somewhat  specialized   it is usually entrusted to the clearing and forwarding agents. This section focus on role of clearing and  forwarding agents in export assignment.

1. Customs Formalities

Goods can be shipped out of India only after obtaining the customs clearance.… Read the rest

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Issues of International Technology Transfers

International technology transfer is the process by which a technology, expertise, know how or facilities developed by one business organization (MNC in the case of international business) is transferred to another business organization. There are many  issues associated with the international technology transfer.  The most important international technology  transfer  issues are; ways of technology  acquisition, choice of technology, terms of technology transfer, and creating  local capability.

Modes of Foreign Technology Acquisition

One of the major issues in technology transfer relates to the mode of acquisition.  Developing new technology may conjure up visions of scientists and product  developers working in R&D laboratories.… Read the rest

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Technology Transfer in International Business

Technology is a new variable in the equation of economic relations. Traditional  theories of international business assumes that all nations have equal access to technology and, therefore,  that there is no need to transfer technology from one county to another. Recent  research findings have invalidated this assumption. In addition, they point to  technology differences as primary cause of international inequalities in  economic achievements. To reduce the inequalities, technology capabilities of  the backward nations must be strengthened. The quickest way to do so is to  transfer technology from the developed to the developing nations.

Technology is any device or process used for productive purposes.… Read the rest

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Multinational Corporations and Home Country Relations

Public attitudes toward Multinational Corporations (MNCs) are biased by a nation’s position as a home or  host country. Historically, home countries have perceived MNC activities as  desirable extensions of their domestic business systems. Conversely host  countries have viewed MNCs as agents of foreign influenced and exploitation.  This historic dichotomy is now shot through with conflicting perceptions of the  MNCs. Different segments of society, such as labor, investors, consumers,  traders, and farmers, see their interests affected in different ways. As a result, a  multi-sided controversy about the societal merits and demerits of MNCs has  grown in both host and home countries.… Read the rest

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Conflicts Between Multinational Corporations and Host Countries

Although the Multinational Corporations (MNCs) has no power over the host government, if may have  considerable power under that government. By being able to influence certain  factors, the MNC has the opportunity to help or harm national economics; in this  sense, it may be said to have power against host governments. Critics of the  MNC perceive these powers as potential perils to host societies.  The strategic aspects of a host country’s national policy that are subject to the  influence of the MNC include:

1. Planning and Direction of Industrial Growth

Host nations have viewed with concern the tendencies of many MNCs to  centralize strategic decisions in their headquarters.… Read the rest

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