Index – Fundamentals of International Business

Index

A

Access limit, 210

Accommodating flows, 230

Acculturation, 44

Acquired advantages, 57

Acquisition, 133

Ad valorem duty, 82

Ad valorem tariff, 84

Ad valorem, 82

Adjustment loans, 212

Administrative delays, 87

Advantage(s)

acquired, 57

natural, 57

theory of absolute, 57

theory of comparative, 59

Advertising, 241

Aesthetics, 50

Age distribution, 33

Aggregate measurement of support (AMS), 100

Agreement on subsidies and countervailing measures (ASCM), 95

Agreement on textiles and clothing (ATC), 100

Agreement on trade-related aspects of intellectual property rights (TRIPS), 101

Agreement on trade-related investment measures (TRIMS), 101

Agriculture, 106

Aid and loans, 84

Aid for trade initiative, 107

American quote, 179

Anti-dumping actions, 105

Appreciation, 177, 192

Approach

classical, 57

ethnocentric, 249

geocentric, 250

hybrid, 239

polycentric, 250

regiocentric, 250

Arbitrage, 180

ASEAN agreement on services (ASAS), 171

ASEAN comprehensive investment agreement (ACIA), 171

ASEAN trade in goods agreement (ATIGA), 170

Ask, 179

Association of Southeast Asian nations (ASEAN), 51, 169

achievements, 171

evolution, 170

growth, 170

objectives of, 170

Attitudes, 49

Automation, 313

B

Back-to-back l/CS, 116

Backward vertical FDI, 133

Balance of payments, 31

Balance of payments (BOP) account, 216

Balance of payments accounting, 216

Balance of payments effect, 140

Balance of payments position, 81

Balance of trade, 219

Bank customers, 178

Bank guarantee, 119

Bank line of credit, 119

Banker’s acceptance (BA), 120

Banking, financial services and insurance (BFSISI) sector, 135

Bargaining power of the TNC, 39

Bargaining, 38

Barter, 16

Basics of foreign exchange, 190

Bid, 179

Bid–ask spread, 179

Bill of lading (B/L), 117

Bill of lading guarantee, 119

Body shopping, 316

Bond(s), 185

bulldog, 185

kangaroo, 185

samurai, 185

Yankee, 185

BOP in totality, 229

Born global firm, 6

BPO industry, 319

Branch office, 136

Brand management, 239

Bretton woods conference, 211

Bretton woods system, 199

BRICS, 207

Brownfield investment, 133

Buddhism, 46, 47

Build-operate-transfer (BOT), 20

Bulldog bonds, 185

Business activity, 133

Business cycles, 31

Business environment, 26

introduction, 26

Business negotiation, 38

Business process outsourcing (BPOs), 147

Business-to-business (B2B), 283

Business-to-business (B2B) e-commerce, 283

Business-to-consumer (B2C), 283

Business-to-consumer (B2C) e-commerce, 284

Business-to-government (B2G), 283

Business-to-government (B2G) e-commerce, 285

Buy American–legislation, 86

Buy local–legislation, 86

Buyback, 17

Buyer credit, 119

C

Capital account convertibility, 193

Capital account, 220

Capital market, 183

Capital-intensive goods, 63

Capitalist system, 27

Capitalist, 27

Captive offshoring, 311

Captive onshore outsourcing, 311

Carbon credit, 306

Carbon market, 305

Caribbean community and common market (CARICOM), 158

Cash compensatory support (CCS), 124

Cash in advance, 114

Central American common market (CACM), 157

Central bank, 178

Central bank reputations, 195

Centrally planned economy, 28

Change in political leadership, 37

Channel length, 241

Civil disorder, 37

Civil law, 51

Classical approach, 57

Clean development mechanism (CDM), 305

Clean float, 200

Clean L/CS, 115

Client market, 178

Climate change, 299

Coal and steel treaty, 162

Codified legal system, 51

Collectivism, 34

Command based economic system, 27

Command economy, 28

Commercial policy instruments, 7993

introduction, 80

Commodities, 56

Commodity boards, 123

Common currency, 163

Common effective preferential tariff (CEPT), 170

Common law, 50

Common market, 159

Common passport, 163

Common policy framework, 163

Commonwealth of independent states (CIS), 74

Communication, 45

non-verbal, 46

Communism, 34, 36

Competition, 28, 140

Composition of world trade, 73

Compound duty, 82

Concentration on core competency, 312

Confirmed L/CS, 116

Confucianism, 46

Conglomerate FDI, 134

Consumer goods, 64, 237

luxury, 64

necessary, 64

Consumer price index (CPI), 31

Consumer products, 237

Consumer rights, 81

Consumer sovereignty, 28

Consumer-to-business (C2B) e-commerce, 285

Consumer-to-consumer (C2C), 283

Consumer-to-consumer (C2C) e-commerce, 285

Consumption abroad, 100

Contemporary exchange rate systems, 200

Continental capital market, 166

Contractual entry modes, 17

Contractual joint venture, 136

Convention on biological diversity, 303

Convention on climate change, 303

Convertibility, 192

capital account, 193

current account, 192

Cooperative joint venture, 136

Core competency, 312

Corporate guarantee, 120

Cost and freight (CFR), 118

Cost of transportation, 275

Cost reduction, 262

Cost, insurance and freight (CIF), 118

Council for mutual economic assistance (CMEA), 71

Council of the European Union, 164

Counter purchase, 16

Countertrade, 16, 87

Crawling peg, 201

Credit

bank line of, 119

buyer, 119

carbon, 306

post-shipment, 122

pre-shipment, 122

Credit unions, 183

Cross docking, 266

Cross exchange rate quotation, 179

Cross-border supply, 100

Cross-cultural training, 251

Cultural environment, 27

Cultural globalization, 4

Culture, 44

characteristics of, 44

elements of, 4450

Currency

convertibility, 192

demand for, 190

fixing of, 178

pegging of, 178

reference, 190

supply of, 191

Currency board arrangement, 201

Currency convertibility, 192

Currency values, 195

Current account, 219

Current account balance, 220

Current account convertibility, 192

Current rate method, 183

Current-non-current method, 183

Customer service levels, 269

Customer sophistication, 241

Customs union, 158

Customs, 49

Cutting costs, 45

D

De facto, 96

Decisions

inventory, 268

location, 267

production, 267

purchasing, 268

transportation, 272

Defence procurement policy (DPP), 17

Defensive motives, 12

Delivered at frontier (DAF), 118

Demand conditions, 68

Demand for a currency, 190

Democracy, 35

Demographic dividend, 33

Demographic environment, 3233

Depreciation, 177, 192

Derived demand, 190

Devaluation, 192

Developing country issues, 105

Development policy loans, 212

Developments in technology, 312

Developments in transportation, 9

Developments in world trade, 70

Digital trade, 76

Direct investment, 222

Direct mail, 242

Direct price influences, 84

Direct quote, 178

Direction of FDI, 143

Direction of world trade, 74

Dirty float, 192, 202

Discount, 179

Dispute resolution mechanism, 105

Distraint guarantee, 119

Distribution, 243244

Diverse business environments, 11

Documentary collection, 116

Documentary L/Cs, 115

Documents against acceptance (D/A), 116

Documents against payment (D/P), 116

Doha development agenda (DDA), 106

Domestic business, 11

Domestic outsourcing, 311

Domestic strategies, 13

Double entry bookkeeping of BOP, 218

Draft, 117

sight, 117

time, 117

Dragon TNC, 6

Drawback scheme, 124

Dunkel draft, 97

Duty exemption, 124

Duty, 82

ad valorem, 82

compound, 82

specific, 82

E

Early supplier involvement (ESI), 263

E-commerce versus e-business, 283

E-commerce, 282

advantages, 286288

business-to-business, 283

business-to-consumer, 284

business-to-government, 285

consumer-to-business, 285

consumer-to-consumer, 285

disadvantages, 288289

drivers of, 289293

evaluation, 286289

types of, 283

Economic and monetary union (EMU), 159

Economic development, 31

Economic environment, 27

Economic exposure, 182

Economic factors, 80

Economic forces, 7

Economic globalization, 34

Economic growth, 31, 140

Economic indicators, 30

Economic integration, 157, 161

Economic liberalization in developing nations, 7

Economic rationale, 80

Economic risk, 194

Economic system, 7, 27

command based, 27

state-owned, 27

Economic union, 159

Economies of scale, 67, 161

Economy

centrally planned, 28

command, 28

free market, 27

Laissezfaire, 28

mixed, 29

sharing, 26

transition, 30

Effects of integration, 160162

Efficiency-seeking FDI, 135

Efficient customer response (ECR), 263

e-frastructure, 284

Electronic commerce, 282

Electronic data interchange (EDI), 263

Electronic hardware technology parks (EHTPS), 127

Elements of globalization, 34

E-markets, 284

Embargo, 86

Emergence of regional trading blocs, 8

Emissions trading, 305

Employment, 80

English speaking work force, 317

Enhanced integrated framework, 107

Entry mode choices, 15

Entry mode, 15

choices, 15

contractual, 17

investment-related, 15, 20

trade-related, 15

transfer-related, 15

Environment, 26

business, 26

cultural, 27

demographic, 3233

economic, 27

legal, 5052

physical, 244

political, 3337

political–legal, 27

regulatory, 313

Environmental degradation, 10

Environmental goods agreement, 107

Environmental issues, 298

EPRG framework, 13

Equity joint venture, 136

Ethics in international business, 52

Ethnocentric approach, 249

Ethnocentric orientation, 13

Ethnocentrism, 13

EU characteristics, 163

Euro, 163, 165

Euro–deutschemark issue, 185

European atomic energy community (EURATOM), 163

European central bank (ECB), 164

European coal and steel community (ECSC), 163

European commission, 164

European community, 163

European court of justice, 164

European parliament, 164

European quote, 179

European system of central banks (ESCB), 164

European union (EU), 4, 81, 162

Euro–yen issue, 185

Eurozone, 164

Exchange rate determination, 189204

Exchange rate, 190

factors affecting, 193195

Exchange rate, 32

Expatriates, 248

Experience curve, 243

Exploitative work practices, 10

Export, 15, 56

Export credit guarantee corporation (ECGC), 125

Export credits insurance corporation (ECIC), 121

Export development authority, 123

Export factoring, 119

Export houses, 127

Export incentives, 124

Export inspection council, 123

Export orientation, 183

Export potential, 39

Export processing zones (EPZ), 126

Export promotion councils, 123

Export quota, 85

Export risk insurance, 125

Export tariff, 82

Export–import bank financing, 120

Export-oriented units (EOUS), 126

External commercial borrowings (ECBS), 145

External debt, 32

External relations, 37

F

Factor endowments, 68

Factor proportions theory, 62

Factor-intensity reversal, 64

Factors affecting the exchange rate, 193195

Farm subsidies, 105

Fast-moving consumer goods (FMCGs), 33

FDI policy changes, 147

Federation of Indian export organizations (FIEO), 124

Fiat money, 195

Financial account, 221

Financial assets, 218

Financial derivatives, 222

Financial institutions and public sector undertakings (PSUS), 145

Financial institutions, 183

Financier, 212

Firm, 12

Firm strategy, 69

Firm structure, 69

First mover advantage, 67

Fisher effect, 197

Fixed exchange rate, 191

Fixed exchange rate system, 200

Fixing of currency, 178

Flexible exchange rate, 191

Floating arrangements, 202

Flood in–feature, 316

Flood out–feature, 316

Forces, 8

economic, 7

political, 8

technological, 8

Foreign credit insurance, 121

Foreign direct investment (FDI), 20, 131

asset-based view, 132134

backward vertical, 133

classification, 132

conglomerate, 134

direction of, 143

efficiency-seeking, 135

entry, 136

evaluation, 139

FDI patterns, 141

forward vertical, 134

home-country perspective, 141

horizontal, 133

host-country perspective, 139140

introduction, 132133

market-seeking, 134

motive-based view, 134136

outflows, 143

policy changes, 147

resource-seeking, 134

sectoral dimensions of, 146

strategic asset-seeking, 135

trends in, 142

vertical, 133

Foreign exchange, 125, 177, 190

basics, 190

brokers, 178

controls, 87

exposure, 181

rate, 177

rate quotations, 178

risk, 181

transaction, 177

Foreign exchange market, 176, 177

functioning of, 177

functions of, 180181

Foreign investment in India, 144151

policy perspective, 145

Foreign portfolio investment (FPI), 20, 145

Forfait market, 119

Forfaiting, 119

Forward expectations parity (FEP), 197

Forward transaction, 179

Forward vertical FDI, 134

Franchising, 18

Free alongside ship (FAS), 118

Free float, 202

Free market, 29

Free market economy, 27

Free on board (FOB), 117

value, 124

Free ports, 126

Free trade area (FTA), 157

Free trade zones (FTZ), 126

Free zones (FZ), 126

Freedom of enterprise, 28

Fundamentals of balance of payments accounting, 217

Future challenges for WTO, 105106

G

GDP deflator, 30

General agreement on tariffs and trade (GATT), 70, 96

agriculture, 99

evaluation, 9798

objectives, 96

principles, 96

General agreement on trade in services (GATS), 97, 100, 109

Generalized system of preferences (GSP), 108

Geocentric approach, 250

Geocentric orientation, 14

Global brands, 39

Global e-commerce, 281294

Global FDI patterns, 141

Global governance, 9

emergence of, 9

Global legal systems, 50

Global marketplace, 9

Global monetary system, 197

Bretton woods system, 199

evolution of, 197200

gold standard, 197

inter-war years and world war II, 199

post-Bretton woods system, 200

Global outsourcing, 309321

cost minimization, 314

drivers of, 311313

factors behind a decision to outsource, 313315

forms of, 311

future threats, 320

introduction, 310

location advantage, 317

managerial costs, 314

market size, 315

production costs, 314

standardization and automation, 313

time advantage, 317

Global supply chain decisions, 265

Global system of trade preferences (GSTP), 109

Global value chain, 9

Globalization, 2, 4

and national culture, 10

cultural, 4

demand, 8

economic, 34

elements of, 3

impact of, 910

introduction, 23

of supply chains, 7

political, 4

Gold standard, 197

Goods, 219

consumer, 237

perishable, 288

producer, 237

returning, 289

Government intervention in trade, 8081

Government sources of trade finance, 120

Government–government, 38

Government–TNC, 38

Gradual elimination, 170

Grants, 212

Greenfield investment, 132, 138

Greenhouse gases, 299

Gross domestic product (GDP), 30

Gross national income (GNI), 30

Growth drivers of India’s ITES–BPO sector, 318319

Growth, 12

H

Hard peg, 201

Heckscher–Ohlin (H–O) theorem, 62

Hedger, 180

Hedging, 180

High-quality ‘luxury’ consumer goods, 64

Hinduism, 47

H–O theorem, 62

Home country, 20

Home-based policy, 253

Horizontal FDI, 133

Host country, 20

Host-based policy, 254

Host-country nationals (HCNS), 253

Human development index (HDI), 31

Human rights, 81

Hybrid approach, 239

Hybrid compensation policy, 254

Hybrid organization, 163

Hyperglobalists, 2

I

ICT-enabled services, 76

Ida long-term loans, 212

Imitator, 65

Impact of tariff barriers, 83

Implications of a new agreement, 168

Import, 15, 56

Import licence, 87

Import prices, 161

Import quota, 85

Import replenishment (REP) licences, 124

Import tariff, 82

Importance of NAFTA, 167168

Incentives and facilities offered to the SEZs, 127

Incoterms, 117

Independent float system, 200

India’s foreign trade, 88

analysis of, 8892

composition of, 8990

direction of, 9192

volume of, 8889

Indian council of arbitration, 124

Indian institute of foreign trade, 123

Indian institute of packaging, 123

Indian rupee (INR), 177

Indian trade promotion organization (ITPO), 125

Indirect quote, 178

Individualism, 35

Industrial estates (IE), 126

Industrial products, 237

Industrialization, 80

Inflation, 31

Information technology (IT), 72

Infrastructural development, 313

Innovator, 65

Institutional development, 313

Institutions of the EU, 164

Instruments of trade control, 82

Integration, 160

Intellectual property, 106

Interbank market, 178

Interest rate parity, 195

Interest, 184

Internal economies of scale, 161

International balance of payments, 215231

introduction, 216

International bank for reconstruction and development (IBRD), 211

International banks, 178

International bond markets, 185

International business negotiation, 38

ethics in, 52

government’s viewpoint, 39

objectives of, 38

International business, 5, 11

growth of, 79

International capital market, 176, 183

International centre for settlement of investment disputes (ICSID), 211

International chamber of commerce (ICC), 117

International development association (IDA), 211

International economic transactions, 217

International emissions trading, 305306

International finance corporation (IFC), 211

International financial environment, 175186

introduction, 176

International financial institutions, 207213

financial assistance, 209

grants, 212

introduction, 208

loans, 212

surveillance, 210

technical assistance, 210211

International financial system, 176

International fisher effect, 197

International franchising, 19

International human resource management (IHRM), 247258

compensation, 253

cross-cultural training, 251

development, 251

home-based policy, 253

host-based policy, 254

hybrid compensation policy, 254

international labor organization (ILO), 255

international labor relations, 254

international labor standards, 255

introduction, 248

language training, 252

recruitment, 249

selection, 249

specific skills training, 252

tax equalization, 253

training, 251

International labor organization (ILO), 255

International labor relations, 254, 255

International leasing, 17

International legal frameworks for environmental protection, 302303

International licensing, 18

International logistics, 263

International marketing, 233245

brand management, 239

international market assessment, 234

introduction, 234

market growth, 235

market intensity, 235

market segmentation, 236

market size, 234

marketing mix, 235

new product development, 240

pricing strategy, 243

product, 237

promotion strategy, 240

sales promotion, 242

International monetary fund (IMF), 4, 208

functions of, 209

International money markets, 184

International orientations, 13

International packaging issues, 270

International price reimbursement scheme (IPRS), 124

International stock markets, 185

International storage issues, 271

International trade, 56

International trade credit, 121

International trade finance, 118

bank sources, 118

private sources, 118

International trade organization (ITO), 96

International trade payment, 114

International trade theories, 5577

introduction, 56

Inter-related negotiation, 38

Inter-war years and world war II, 199

Inventory decisions, 268

Investment assets, 222

Investment loans, 212

Investment offered, 39

Investment related entry mode, 15, 20

Investors, 183

Invisibles trade, 219

Irrevocable L/CS, 116

Islam, 48

Islamic law, 51

ITES industry, 319

J

Jainism, 46

Joint float system, 203

Joint implementation (JI), 305

Joint ventures, 139

Judeo–Christian tradition, 46

Justin-time (JIT) delivery, 263

K

Kaizen, 265

Kangaroo bonds, 185

Karma, 46

Kitting, 266

Kyoto mechanisms, 305

Kyoto protocol, 303, 305

L

Labor practices, 105

Laissez-faire capitalism, 28

Laissezfaire economy, 28

Language training, 252

Language, 45

Latin American association of integration (ALADI), 157

Latin American free trade area (LAFTA), 157

Least developed countries (LDCS), 108

Legal environment, 5052

Legal jurisdiction, 51

Leontief paradox, 63

Lessee, 17

Lessor, 17

Letter of credit (L/C), 115

back-to-back, 116

clean, 115

confirmed, 116

documentary, 115

irrevocable, 116

revocable, 116

revolving, 116

transferable, 116

types of, 115

unconfirmed, 116

Levels of economic integration, 157

Liabilities, 222

Liberalization of foreign trade, 122

Licence, 87

Licensee, 18

Licensor, 18

Life cycle model, 65

Lighter aboard ship (LASH), 273

Linder’s income-preference similarity theory, 64

Loan guarantee, 119

Loans, 212

development policy, 212

IDA long-term, 212

investment, 212

Loans, 84

Local outsourcing, 311

Location decisions, 267

Long position, 179

Loss of national sovereignty, 10

Lost decade, 109

Low quality, ‘necessity’ consumer goods, 64

Low-cost manpower, 312

Luxury consumer goods, 64

M

Maastricht criteria, 165

Maastricht treaty, 162, 163

Macroeconomic discipline, 166

Managed float, 202

Managerial costs, 314

Manpower, 312

low-cost, 312

skilled, 312

Manufacturing, 267

Maquiladoras, 169

Marine products export development authority (MPEDA), 123

Market access initiative, 125

Market development assistance (MDA), 125

Market growth, 235

Market intensity, 235

Market segmentation, 236

Market size, 234, 315

Market socialism, 29

Market, 177

client, 178

interbank, 178

retail, 178

wholesale, 178

Market-based mechanisms, 303

Market-based system, 27

Marketing adaptation, 235

Marketing mix, 235

Market-seeking FDI, 134

Marrakesh accords, 303

M-commerce, 286

Media availability, 241

Mercantilist doctrine, 56

Merchandise export from India scheme (MEIS), 113

Mercosur, 159

Merger and/or acquisition (M&A), 138

Merger, 133

Mergers and acquisitions (M&AS), 138

Mergers, 139

Micro TNC, 7

Microchip, 8

Milk runs, 266

Mixed economy, 29

Modes of entry, 15

Modes of FDI entry, 136

Modes of transport, 273

Monetary union, 165

Monetary-non-monetary method, 183

Most-favoured-nation (MFN), 81, 103

Motives, 12

defensive, 12

offensive, 12

strategic, 12

Multi fibre arrangement (MFA), 100

Multi fibre arrangement (MFA), 85

Multilateral investment guarantee agency (MIGA), 211

Multilateral regulation of trade, 95110

Multilayered bargaining, 38

Multinational corporation (MNC), 4

Multinational enterprise (MNE), 3

Multipoint pricing, 243

N

NAFTA, 4

National competitive advantage, 68

National sovereignty, 10

National treatment, 103

Natural advantages, 57

Nature of business activity, 133

Nature of product, 241

Necessity consumer goods, 64

Net errors, 223

New product development, 240

New trade theory, 67

Nirvana, 46

Non-bank dealers, 178

Non-captive offshoring, 311

Non-captive onshore outsourcing, 311

Non-economic factors, 276

Non-economic rationale, 81

Non-tariff barriers, 84

Non-verbal communication, 46

North American free trade agreement (NAFTA), 157, 166

export subsidies, 167

grade and quality standards, 167

importance of, 167168

internal support, 167

provisions, 166167

O

Offensive motives, 12

Official reserves account, 223

Offset of countertrade transaction, 87

Offset, 17, 88

Omissions, 223

Open account, 117

Operating exposure, 182

Operational complexities, 11

Operational risk, 37

Order cycle time, 269

Orderly marketing arrangements, 86

Organization of the petroleum exporting countries (OPEC), 91

Organizations for export promotion, 123

Outsourcing flexibility, 183

Outward foreign direct investment (OFDI), 141

Outward Indian FDI, 148

Ownership of technology, 39

Ownership risk, 37

P

Parent-country nationals (PNCS), 253

Pegged exchange rates, 202

Pegging of currency, 178

Perishable goods, 288

Personal digital assistants (PDA), 286

Personal selling, 241

Petroleum, oil and lubricants (POL), 90

Physical environment, 244

Political environment, 3337

Political forces, 8

Political globalization, 4

Political ideologies, 33

Political risk, 37, 194

causes of, 37

types of, 37

Political systems, 33

Political union, 159

Political–legal environment, 27

Polycentric approach, 250

Polycentric orientation, 14

Porter’s diamond, 68

Portfolio investment, 222

Post-Bretton woods system, 200

Post-shipment credit, 122

Predatory pricing, 243

Predictability, 275

Preference similarity, 64

Presence of natural persons, 100

Preservation of national identity and culture, 81

Pre-shipment credit, 122

Price index, 30

Pricing flexibility, 183

Pricing strategy, 243

Primary activities, 261

Primary income, 219

Primary products, 56

Problems and pitfalls of the ITES–BPO industry, 319321

Producer goods, 237

Product differentiation, 67

Product diversity, 39

Product life cycle theory, 65

Product quality, 262

Product, 237

adaptation, 238

consumer, 237

development, 240

industrial, 237

life cycle, 238

nature of, 241

Production costs, 314

Production decisions, 267

Production factor, 77

Production flexibility, 183

Productivity, 162

Profit, 12

Promotion strategy, 240

Promotion, 240

Protection of human rights, 81

Protection of consumer rights, 81

Pull factors, 12

Purchasing decision, 268

Purchasing power parity (PPP), 196

Purely free market, 29

Push factors, 12

Q

Quality, 265

Quantity controls, 85

Quota, 85

export, 85

import, 85

R

Rate of charge, 210

Rate(s)

exchange, 190

factors affecting the exchange, 193195

fixed exchange, 191

flexible exchange, 191

pegged exchange, 202

relative economic growth, 194

relative inflation, 193

relative interest, 194

spot exchange, 191

spot, 179

Rationale, 80

economic, 80

non-economic, 81

Real assets, 218

Reciprocal requirements, 87

Reference currency, 190

Regiocentric approach, 250

Regiocentric orientation, 14

Regional economic integration, 155173

introduction, 156

Regional trading agreements, 162

coal and steel treaty, 162

European community, 163

euro—the common currency, 163

Maastricht treaty, 163

Schengen agreement, 163

treaty of Rome, 163

Regulatory environment, 313

Related and supporting industries, 68

Relative economic growth rates, 194

Relative inflation rates, 193

Relative interest rates, 194

Religion, 46

Reserve bank of India (RBI), 145

Resource-seeking FDI, 134

Retail market, 178

Returning goods, 289

Revaluation, 192

Revocable L/CS, 116

Revolving L/CS, 116

Right-wing totalitarianism, 36

Ringgit, 192

Rio conference, 302

Rio declaration, 302

Risk, 11

economic, 194

operational, 37

ownership, 37

political risk, 194

political, 37

transfer, 37

Rivalry, 69

Roll-on-roll-off (RORO) vessels, 273

Rural–urban distribution, 33

S

Sales promotion, 242

Samurai bonds, 185

Sanitary and Phytosanitary (SPS) measures, 100, 166

Schengen agreement, 163

Secondary income, 219

Secondary products, 56

Secondary trading centres, 178

Sectoral dimensions of FDI flows, 146

Served from India scheme (SFIS), 114

Services exports from India scheme (SEIS), 113

Services, 219

Sharing economy, 26

Shintoism, 46

Short position, 179

Short-term money market, 183

Siddha, 47

Sight draft, 117

Sikhism, 46

Single market, 163

Six sigma, 265

Skilled manpower, 312

Social capitalism, 35

Social customs, 244

Social democracy, 35

Soft peg, 201

Software industry in India, 315318

Software technology parks (STPS), 127

South Asian association for regional cooperation (SAARC), 172

Special economic zone (SEZ), 126, 127

Specific duty, 82

Specific permission requirements, 87

Specific skills training, 252

Speculation, 180

Speculator, 180

Spillover effects, 139

Spot exchange rate, 191

Spot rate, 179

Standardization, 235

State-owned economic system, 27

State-owned TNC, 7

Stock markets, 185

Strategic alliances, 136

Strategic asset-seeking FDI, 135

Strategic motives, 12

Subsidies in agriculture, 105

Subsidies, 84

Sunset clause, 169

Supply of a currency, 191

Supply-chain management, 260

objectives of, 262

Support activities, 261

Surveillance, 210

SWAP, 179

Systems concept, 264

T

Taoism, 46

Target-zone arrangement, 203

Tariff barriers, 8283

Tariff, 82

ad valorem, 84

barriers, 8283

export, 82

import, 82

transit, 82

Tax equalization, 253

Technical barriers to trade (TBT), 100

Technological forces, 8

Technology, 312

Temporal method, 183

Terms of trade, 117

Tertiary products, 56

Testing standards, 86

Textiles monitoring body (TMB), 100

Theocratic law, 51

Theocratic totalitarianism, 36

Theories of exchange rate determination interest rate parity, 195197

Theory of absolute advantage, 57

Theory of comparative advantage, 312

Theory of comparative advantage, 59

Third-country nationals (TCNS), 253

Third-party logistics (3PL), 266

Third-party logistics, 266

Tied loans, 84

Time draft, 117

TNC, 6

TNC–subsidiary/affiliate, 38

Tokyo stock exchange (TSE), 186

Total cost concept, 264

Total quality management (TQM), 265

Totalitarianism, 36

right-wing, 36

theocratic, 36

tribal, 36

Trade and competition policies, 108

Trade and sustainable development goals (SDGS), 107

Trade as a bargaining tool, 81

Trade barriers, 63

Trade control, 82

Trade creation, 160

Trade diversion, 160, 161

Trade fairs and exhibitions, 125

Trade finance, 118

Trade in services, 75

Trade in textiles, 100

Trade promotion in India, 122128

export incentives, 124

export risk insurance, 125

free ports, 126

market access initiative, 125

market development assistance, 125

marketing assistance, 124125

production assistance/facilities, 126

trade fairs and exhibitions, 125

Trade rounds, 96

Trade-off concept, 265

Trade-related aspects of intellectual property rights (TRIPS), 97

Trade-related entry modes, 15

Trade-related investment measures (TRIMS), 97

Trading relationship, 65

Tradition, 244

Traditional TNC, 6

Transaction exposure, 182

Transboundary pollution, 300302

Transfer risk, 37

Transferable L/CS, 116

Transfer-related entry mode, 15

Transformationalists, 3

Transit tariff, 82

Transit time, 274

Transition economy, 30

Translating statements, 183

Translation exposure, 183

Transnational corporation (TNC), 4

classification, 6

dragon, 6

micro TNC, 7

state-owned TNC, 7

traditional, 6

Transnationality index (TNI), 6

Transport, 273

Transportation decisions, 272

Transportation infrastructure, 276

Transportation, 9

Treaty of Rome, 163

Trends in FDI, 142

Triad countries, 143

Tribal totalitarianism, 36

Trips agreement, 107

Turnkey projects, 20

U

Umbrella holding company, 139

Uncertainty, 11

Unconfirmed L/CS, 116

United nations (UN), 51

United nations conference on trade and development (UNCTAD), 107

assessment, 108

functions of, 108

United nations environment programme (UNEP), 302

United nations framework convention on climate change (UNFCCC), 302

Urban enterprise zones, 126

Uruguay round, 97

V

Values, 49

Veblen goods, 238

Vernon’s theory, 66

Vertical FDI, 133

Visible exports, 15

Visible imports, 15

Volume of India’s foreign trade, 8889

Volume of trade, 72

Voluntary export restraint (VER), 86

W

Wholesale market, 178

Wholly owned subsidiary, 137

World bank, 211

World bank group, 211

World trade organization (WTO), 4, 98

achievements, 106107

agreements, 99

evaluation, 104

functions of, 104

future challenges for, 105106

organizational structure of, 101102

principles of, 102103

World trade, 70

composition of, 73

developments in, 70

direction of, 74

trends, 71

Y

Yankee bonds, 185