Vishvyapar Jan Issue

7/29/2019 Vishvyapar Jan Issue

1/22


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Dear Readers,

We hope you enjoyed the last issue of Vishvavyapar. Yet another new

issue of Vishvavyapar is out with new talks of the global family. The

esteemed Professor of economics, Mr. S.K.Singh, has provided us with

some insights of this much talked about issue through his article

Downgrade of US Debt: an Analysis. Corporate bites in this issue are

provided by Mr.Kinjal Pandey, General Manager at A.P Moller-MaersklineGroup.

This edition comes with a new column of interview summaries of our senoir

batch to give an isight of interviews.

Lastly you would also not want to miss the crossword puzzle of the month

do solve it.

Enjoy Reading!

F r o m e d i t o r s d e s k

In this issueDowngrade of US Debt: An

analysis

Doing international business:

ethically

Interview Experience

FDI in retail in India

IB News

Crossword

(Mail your views with name

and topic to

[email protected])

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mailto:[email protected]:[email protected]:[email protected]


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The newsletter is envisaged as an attempt to form a link with the latest happenings in

the dynamic world of international business- as a platform for the authors to bring

across to the readers their perspectives on what moves the wheels of the corporate

world in the international arena.

V i s i o n

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Doing International Business: ethically

Doing business in the global marketplace

requires exhibiting overseas. Participating in

international shows helps establish your

companys presence as a global player, and is

perhaps the single most valuable tool in forging

new, valuable relationships with your foreign

counterparts.

But there is an element of risk in international

exhibiting. While the United States enjoys a

relatively high level of political stability, the

same is not true around the world. Riots

happen, terrorism happens, strikes happen,

even natural disasters happen. Obviously, these

events cannot be predicted, but there are

certainly things you can do to minimize your

companys exposure to risk. It is not realistic to

simply avoid any location that might be

potentially dangerous. One must weigh the

perceived risk against the possible rewards and

make a reasoned judgment call. To do that, use

the MAP formula that can be stated as

following:

M: Maintain Awareness: Keep abreast of

current events in your destination country. The

media can be your ally in this task, although it is

good to remember that the camera crews dont

arrive until there is something to film. A crisis

may have been brewing for a while before

something sets it off and you want to be

aware of whats brewing.

Pay attention to local media. Do not rely solely

on American television or print media to give

you a perspective on whats happening. Youll

get a clearer, more authentic version of events

from either the country itself or that of nearby

neighbours. Getting accurate information out of

some countries is notoriously difficult former

Soviet Bloc countries, China, Korea, and some

African dictatorships for example so youll be

forced to be more proactive in your research.

Additionally, the State Department regularly

issues reports updating conditions in various

locations for Americans abroad. They will also,

when conditions merit, urge travellers to leave

or avoid a particular destination. Make sure you

check this information regularly, and take any

warnings issued by the Government.

C o r o ra te Ar t i c le

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A: Ally Yourself: Partner with local vendors,

suppliers, and customers. These people will be

your eyes and ears on the ground in your

destination country. After all, they live thereevery day, and will have valuable firsthand

knowledge of what is going on. This can be

more valuable than any information gleaned

from news reports, as local residents will be

able to place things in perspective. Theyll know

if the rumblings between Faction A and Faction

B are elevated or are just at a regular level but

in the spotlight. While it is important to view

media sceptically, as they have a tendency

toward sensationalism, it is also important notto rely too much on the advice of any one

foreign ally. Some cultures are structured in

such a way that people will go to elaborate

lengths to avoid saying no or having to deliver

unpleasant news. This can be misleading, and

give you the impression that things are perhaps

better than they really are or seem to be.

One last caveat: The majority of your allies have

a financial stake in your show participation.Remember that they will be making judgments

and giving advice with one eye on their own

interests. Additionally they may assess risk

differently. People who live with the daily

threat of car bombs and drive-by shootings

learn to take these things in stride, while a

visitor may find themselves terrified. That is

why it is important to combine your allies

reports with objective media information.

Have your allies brief you on the area before you

arrive. Where are the safe areas, and what

sections of town are to be avoided? Are there

local customs that you need to know? There can

be regional differences within a country

metropolitan areas may be far more liberal than

the rural countryside. You want your people to

fit in as much as possible. Being noticed on the

show floor is a good thing being noticed as a

potential target by an angry crowd outside, notso good situation to be in at all.

P: Plan: Have a worst-case scenario plan in

place. Where will you go if the convention

centre is attacked? It is prudent to have an off-

site go-to spot designated, even if youll never

use it. Airports, municipal buildings, embassies

or an unaffiliated hotel are all good choices for

this task. Decide on a meeting spot to regroup if

your party gets separated during chaotic events.

Each member of your team should have their

own travel documents with them at all times.

Make sure everyone has everyone elses contact

information. A phone list may seem like one

more bit of paper to manage, but it could come

in invaluable if one or more individuals get lost.

Have a code of behaviour in place for your

booth staff. Now, more than ever, they are acting

as your companys ambassadors. People are

often highly aware of the strangers in their midst who they are, and how they conduct

themselves. Its tempting to kick up your heels

and have a wild time, especially in a strange,

exotic locale but acting like the Ugly

American can be bad for business. Worse, wild

times can have fatal results. Visitors who are

obviously out of their elementand intoxicated

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and intoxicated are easy pickings for the

criminal element that lurks in every city.

Using the MAP formula doesnt ensure that

nothing bad will ever happen. However, it will

help your team be prepared for what might

happen during your next overseas exhibit.

For small and medium sized enterprises in the

business or professional services industry,

expanding to a foreign market can be a daunting

proposition. Many such companies limit their

growth by not taking the chance, while others

proceed with insufficient preparation and then

wonder why they didnt succeed. The following

is a brief outline of the key steps that should be

undertaken prior to launching into an

international venture, and some of the issues to

consider.

Article by:

Kinjal Pande

General Manager , A.P. Moller - Maerskline Group

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7/22

Downgrade of US Debt: An Analysis

(Article Continued from December issue)

Shrawan Kumar Singh,

Professor of Economics and Director,

School of Social Sciences, IGNOU, (Retd.)

Impact on India:

How will this rating downgrade pan out in

India? In this context, three questions are

important: First, how severe is the US debtdowngrade in general and what are the

implications for Indias own debt? Second,

what has been the impact of this downgrade

on money, forex, government securities, and

equity and bond markets. And third, what is

the likely impact on Indias growth prospects

and the implication for policy perspectives in

the current context? A related question is:

how serious is the downgrading for Indias

own position? India is rated seven noticesbelow AA, at BBB-, with a stable outlook by

S&P. This reflects the lowest investment

grade ratings for India, only one notch above

the junk category. Goldman Sachs recently

upgraded Indian equities to market weight

from underweight. Even with its high debt

and deficit levels, the country is in a relatively

comfortable position compared to the US and

other advanced countries. Even as the

countries in Europe seem to be facing credit

rating cuts, India is rightly pressing rating

agencies to secure an upgrade.

The finance ministry has asked all the financial

sector regulators to look at measures to

improve credit rating.

Except for the foreign exchange market and

the equity markets, the impact of the US debt

downgrade was muted on all fixed income

markets including the money market, with the

exception of the corporate bond market

which witnessed some pressure on bond

spreads. The nexus between the stock marketindices, foreign institutional investment (FII)

flows and the rupee exchange rate became

evident during this period. Significant FII

outflows were noticed post-US downgrade,

starting 5 August 2011.

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W o r d s f r o m F a c u l t


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It is clear that except for the capital market

and the foreign exchange market, the impact

of the US debt downgrade was muted in all

other fixed income markets. Hence, apart

from the transmission effect of the policy rate

hikes, any fear of additional impact of the

debt downgrade is not well-founded. Any

liquidity concerns in either the money or forex

a market as fallout of the US debt downgrade

has been quenched in time by the RBIs

assurance that adequate rupee and forexliquidity will be sustained to prevent any

excessive volatility in interest rates or in the

rupee exchange rate. India, by virtue of its

modest openness and its track record of

prudential policies, may not face any serious

disruption of a lasting nature. There could be

some hiccups, like the hardening of

government securities and bond yields,

combined with some stock market correction,

but the near and medium-term outlook for

growth as also for financial stability should

remain intact.

The accommodative policy of the US and

other advanced economies to preventrecessionary trends will contribute to further

augmentation of global liquidity seeking

better returns.

Given the interest rate differential, the

current resilience of the Indian economy and

medium-term growth prospects, the country

is bound to remain one of the best

destinations for foreign investment. Hence, it

is expected that the inward capital flow will

regain its buoyancy in the coming months.

The current growth momentum is intact. At

best, there could be only a slight moderation

in growth, but definitely not a slowdown.

Fiscal position is another soft spot in theeconomy. Prospects of increase in subsidy

payments, there is the risk that this years

budget may put additional demand pressures

stoking inflation. The domestic currency may

harden in case of a pronounced slowdown in

developed economies, but the slowdown in

the global growth is also expected to bring

commodity prices to more affordable levels.

This trend is amply reflected in moderating

crude oil and metal prices. The other side of

this story is that growth may not suffer if

public sector demand increases. Given the

persistent demand pressures from the

private, public and export sectors, and the

downside risks to sustenance of capital flows,

the appropriate policy stance for the central

bank would be to persevere with its anti-

inflationary stance and continue tightening

rates if needed. It is commendable that both

the government and the RBI have chosen this

path so far (Economic and Political Weekly,

August 20, 2011).

Near-term confidence notwithstanding, the

Indian IT industry is somewhat guarded on the

long-term impact. ``The lag effect will show

up some two quarters down the line''. But the

retail Indian BPO could be hurt straightaway

as the impact of the rating downgrade

manifests in higher interest rate on home

mortgage, declining travel, drop in spending

on non-essentials and the like in the U.S.

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9/22

The rating downgrade will also have definite

consequences for trade. The immediate worry

is that how will the dollar move. Any

depreciation in dollar is going to hurt Indian

exports. Any fall in dollar will make Indian

exports uncompetitive. Export-driven

industries such as garments, handicrafts,

leather, gems and jewellerycould come under

severe stress because of changes in dollar-

rupee parity likely in the wake of rating

downgrade. There is a positive aspect to it,

however. The imports (especially the oil bill)

could turn cheaper should dollar depreciate.

Though the macro numbers in India are still

encouraging, the deceleration concerns have

already started assuming vocal expressionthese days. The latest series of actions on the

U.S. front are bound to force the monetary

and fiscal managers in India to re-adjust their

policy prescriptions in a dynamic global

environment, which is set for a major

metamorphosis in the wake of Standard &

Poor's decision to push America out of the

risk-free borrowers' list.

The central bank may continue to follow the

policy ofleaving the rupee alone. The RBI does

not have any target rate or band. Intervention

is resorted to only when the market is volatile.

The appreciation of the rupee helps in

bringing down the cost of imports of raw

materials including oil. Export industries

dependent on imports have benefited greatly

by the decline in prices. Export of gold and

diamond-studded jewellery is a good example

since nearly 80-90 of the raw material is

imported. In all the discussions on exchange

rates one rarely comes across such concepts

as income and price elasticitys of imports andexports and Marshall-Lerner Conditions, etc.

Whether Indian exports will be out priced in

international markets depends on the relative

strength or weakness of other currencies.

One reason for the good performance of

Indian exports despite the rupee appreciation

is the fact that the currencies of some

competing countries have appreciated even

more, providing a net advantage to the rupee.

Any appreciation of the rupee should be

treated as a correction for its undervaluation

in relation to the dollar. Although the US

share in our exports is about 16 per cent,

nearly two-thirds of the total is invoiced in

dollars. The real problem will arise in case

there is a double dip recession in US and

Europe. The extent of intervention can be

only marginal since the total volume of forex

transactions either in India or in the worldmarkets is huge. It is possible that a few

industries may suffer due to rupee

appreciation. The remedy is in taking fiscal

measures to provide relief as was done during

the recent crisis. Information technology is

likely to be one of the sectors that may be

adversely affected. There is a difference

between the crisis of 2008 and the event of

2011. The initial position in 2011 for India is

different from [that in] 2008.

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Our fiscal position is weaker both in quantity

and quality. The external sector position is

weaker both in terms of stock of assets and

liabilities, be it quantity-wise or quality-wise,and flows in terms of current account deficits.

Domestically, both public and private

investments seem to be somewhat subdued,

while supply inelasticitys have set in. Above

all, in 2008, we entered the crisis with

confidence in terms of both growth and

inflation, while the sentiment today is less

confident than before. The redeeming

feature, perhaps, is that the events in 2011

may not indicate a serious crisis, but would

indicate uncertainties, volatilities, divergent

growth paths, divergent policies, etc. The

challenges for policymakers are different, way

forward (Y.V. Reddy, The Hindu, August 18,

2011).

Indian economy was largely insulated from

the global financial turmoil that had resulted

from downgrading of US credit rating and the

sovereign debt crisis in the Euro zone. Firstchallenge for India is to start thinking in terms

of a nimble strategy, not just cautious policy,

to handle a divergent world. There is a

divergence between the real sector and the

financial sector; there is a divergence between

policy and the markets. First is to have a

strategy, second is to be nimble. The next

question is how are the other emerging

markets going to do is an issue. Most other

Emerging Market Economies (EMEs),

particularly in Asia, are stronger than India.

Given the robustness of US bonds,

India need not worry overtly about the

downgrade. As it happens, valuations are

now attractive for investors. And so long as

the Indian economy grows and if policy

becomes more assertive, India will remain a

destination for both portfolio and direct

investments in a world with shrinking options,

beating back any ill-winds from S&P-type

ratings. The global event is a matter of

concern, but not a matter of alarm, because

the long-run story remains more or less intact.

The Indian political class must realise the

dangers of partisanship sans concern for the

collective good. India, therefore, would do

well to get its domestic political house in

order and move forward on the policy front.

The government must now summon the

requisite initiative.

********

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11/22

The following is a short summary of the ICICI

bank interview of Udit Gupta.

I was invited in the room where the panel

consisted of two panellists, one was the HR, and

the other was the Functional Expert (FE).

HR: So Udit, tell us about yourself.

Me: I mentioned the normal rattofied stuff:

Cricket, Travelling, Chinese, and Social Work.

HR: Why did you leave cricket if you played at the

University level.

Me: I had a really nasty injury in which I broke my

nose, so I told them about it, and how I am really

scared to even hold the bat now while facing

the ball after that accident. I made sure I was

very candid and did not try to hide my weakness

that I gave up on something in which I was good

at.

FE: You did your internship in Bank of Tokyo. Tell

us about that

Me: I told them about it. Pretty standard stuff.

FE: So you love travelling, ehh? Your CV shows

you even went to Sikkim for one month for some

internship in an NGO.

Me: Told them about my internship, my work,and the difficulties I faced there, the new culture,

the new people, living amongst tribals etc.

FE: What do you think these NGOs get their

funding from?

Me: Corporate, donations, sponsor events etc.

HR: Tell us about your family.

Me: Told them the exact thing.

FE: You have so many things in your resume. Tell

us about your daily schedule.

Me: Sir, I wake up at 5:00 for jogging (I

mentioned in my CV that I do long distancerunning). I come back at 6:00. I leave my home at

7:00 for my Chinese classes. I attend my class

from 8:00 to 10:00. I come to the college and

attend classes which generally finish by 3:30. I

stay back till 6:00 for the Placement committee

work and leave for home after that.

HR: Any location issues?

Me: No.

FE: Any questions from us.

Me: I asked them about their office in Shanghai,

and since I am interested to work in that

Geography, would I be able to get a chance to

handle ICICI's operation there?

FE: Its really small. Only two people are handling

it so most probably no. But maybe Singapore and

Malaysia, after a few years only, though.

Me: Thanks Sir.

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I nte r vi ew E x e ri e nc e

Udit Gupta

Master of International Business

Delhi University


12/22

PLACEMENT.guys being honest to oneself,

mind my words, it is one that thing for which

we are in the campus.

I was very clear from the beginning about the

sector I wantto pursue my career in, it wasthe IB sector. I worked on my skill set required

to work in this sector especially in ITPD &

SCM.

And finally that moment came, 26thDec2011

was the D-day when STC was scheduled to

arrive. It was a two day process, first day was

for GD and the next was for interview. GDs

were scheduled in small groups of seven

students each, mine was the last GD and Imust concur, it was not at all a typical fish-

market like GD. People were very well

behaved and we actually discussed the case

rather than tearing each other apart. At the

end of the GD the moderators specifically

pointed out me and asked the question- I

have a question for you..You are a Doctor?

(My answer- Yes sir)If we select you in STC

will you continue your clinical practice? (I

replied that how being in Fortis I got

interested in managerial aspect of corporate

Hospitals and why have I fit in the STC), a

terse replied came from one of the moderator

who was an IIM-L alumnus.You have not

answered the Question, will you practice or

not?.....I replied , No sir. Chief moderator

wrote something on a paper and asked us to

leave. After 30-40 minutes result came out

and I was shortlisted.

27th

December2011, 11:30 am.

We welcomed seven people from STC of

whom four were directors from different

verticals and three were GMs. I should have

felt intimidated but strangely I was very calm

and had perfect control over my breath. My

number for interview was seventh; I had a cup

of tea at JP and started looking my notes for

finer details. Then came the call of

Ramteke..next are you Kapil!

I knocked the door and asked for the

permission to come in, they replied.oh yes

yes please come.then I asked to sitthey

again replied in affirmation.

Q1. Hmmmso you are Dr. Goswami?

Ans. Yes sir.

Q2. Doctor.then MBA and now a PSU?

Ans. I was waiting for this question, the

moment it bombarded on me, I felt

gotcha..!!!!...I explained them the whole

supply chain of the question with specific

emphasis on my vision of working in STC.

(People must take their discretion in finding

out their purpose of joining a company like

STC according to respective profile and

experience).

Dr. Kapil Goswami


Delhi University

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13/22

Q3. OkDr. Goswami .you have worked with

Tata Motors as summer intern; tell us about

the problem Tata Motors is facing in case of

Nano?

Ans. I gave the relevant answer.

Q4.Device a market strategy for it?

Ans. I gave the relevant answer.

After 3-4 such questions, question started

coming from another corner

Q5. Do a market segmentation for Medical

appliance manufacturing company, which is inexport of such items.

Ans. I expected these kind of questions and

really want to thank RTL and its Journals on

Marketing for my fine preparation of these

questions.

Q6. Which are the Hospitals involved in tele-

medicine in India?

Ans. I never expected such medical jargons

from themalthough I gave the answer

but I knew what is waiting for me when they

will start questioning from their own field i.e.

IB.

Question again changed the position and

started coming from a different direction.

Q7. What are regional trade blocks?

Ans. I answered with lots of examples.

Q8. What is the trade-off between RTA &

WTO?

Q9. Why WTO came into existence and how is

it different from GATT?

Q10. Do you believe that WTO has achieved

its objectives (this question was germinated

because my answer to previous question).

Q11. Which round of talks is going on in WTO

and why talks are not concluding?

Ans. My advice to aspirants is that they

should focus on the welfare of India, ratherthan giving a balance view on such policy

questions, as I discussed AoA and Subsidy

issue, Non Tariff barriers etc. but

unfortunately pointed out the concern of

developed nations also viz-a-viz to India.

Q12. How do countries solve their issues in

WTO?

Ans. I explained them DSB, countervailingduties and antidumping duties etc. before my

answer concluded another question came.

Q13. What exactly is the difference between

countervailing and antidumping duties?

Ans. My advice to aspirants is to take such

Lolly-pop questions with open hands and

explain them in detail.

Questions again changed the direction

Q14. Does anything strike in your mind with

alphabets ABC w.r.t analysis of an

organization?

Ans. I enumerated all the models that are in

abbreviated form like SWOT, BCG matrix,

Porters five force model etc. but in no vain

then they gave a clue that something related

to inventory management and I explained

them activity based costing (ABC).

Q15. Which all subjects have you studied so

far?

Ans. This is again a very expected question

and key to answer this is to lead the

interviewer towards your subject of strength,

in my case it was ITPD.

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14/22

Q 16.How an Importer opens an LC?

Q17. Who are primary, secondary and tertiary

parties to LC?

Ans. I could answer primary and secondary

comfortably but had no clue about tertiary.

They gave a clue although after I surrendered.

Q18. Who can countersign the documents

involved in international trade?

Ans. I again explained them the whole flow of

documents but they laughed and said no this

is not the answer. This was third time I was

not giving a proper answer, I asked them to

give me a few seconds to recollect my thought

process and finally answer that it is CHA who

can verify the documents on behalf of

exporter or importer but doesnt have signing

authority.

These were my last words of that interview

and even today I dont know whether my last

answer was correct or not (Whole interview

last for around 35-40 min). Five more

students went for interview after me and

after around three hours came the result that

I am an Assistant Manager with STC along

with five other MIBians.

13


15/22

FDI in retail in India

FDI in retail has always been an issue of

concern and towards subjectivity from the

various sections of the industry. From

governments approval to oppositions

intervention let us try to analyze the scenarios

and its implications.

FDI in Retail a myth or a mystery..?

An analysis conducted by researchers from

Michigan State University and the

International Food Policy Research Institute

on developments in Asia from 2001 to 2009

observed that while domestic conglomerates

had played a role in the rapid growth of

organized retail in China, Indonesia, Malaysia

and Thailand, the presence of foreign firms

had grown substantially. Moreover, evidence

from developed countries shows that such

growth is followed by a process of

consolidation in which a few global retail

chains tend to be the winners.

India: A Lucrative destination

Why FDI in retail in India becomes a lucrative

destination for the Foreign Retailing giants is

that their Foreign sales have been a major

contributing source of revenue for them,

amounting in 2007 to as much as 74 per cent

in the case of a hold of the Netherlands, 52

per cent for Carrefour of France, 53 per cent

for Metro of Germany, 22 per cent for Tesco

of United Kingdom and 20 per cent for Wal-

Mart of the United States. Wal-Marts 20 per

cent too has to be seen in context: with $379

billion of revenues in 2007, it stood way

ahead of Carrefour, which came in second

with $123 billion in the global league table for

revenues.

Concerns with FDI in retail

It is of course true that agriculture is not a

homogenous sector, with farmers of different

types and sizes engaged in production. The

larger farmers with accumulated surpluses or

easier access to official credit may benefit

from the transformation in retail. What it

does is that it raises selective exposure of

Microfinance as a nonbanking financial credit

to Farmers. It is the experience of farmers

such as these that are often reported when

the case is made out that farmers do favour

FDI-led large retail. But they are by no means

the majority, and not all of them are likely to

experience an improvement in their lives once

the transformation occurs. The farmers would

tend to gain and benefit as a whole but it

would be a more skewed growth distribution.

S t u d e n t A r t i c l e

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16/22

Moreover, since global chains are allowed to

and are equipped to source supplies from

anywhere in the world, these large farmers,

just as the smaller farmers, would be subject

to competition from the cheapest global

sources. They could be shut off from access toconsumers unless they accept a significant

reduction in prices. Adverse effects on

employment and earnings are, therefore, a

real possibility.

The second concern is that even when

farmers' earnings are under pressure,

consumers may not benefit from the

promised reduction in prices resulting from

cost economies and the benefits of scaleaccruing to large intermediaries. Lower prices

for consumers may be the initial fallout when

existing intermediaries are being competed

out to provide space for the large retailers.

But once the retail trade is concentrated in a

few firms, retail margins themselves could

rise, with implications for prices paid by the

consumer, especially in years when domestic

supply falls short.

Employment Embroil

Wal-Mart Case

The average size of a Wal-Mart supermarket

in the US is 108000 sq.ft employing around

225 persons. In 2010, Wal-Mart sold $405

billion amount of goods through its 9800 odd

outlets 5located across 28 countries,

employing around 2.1 million (21 lakh)

persons. This implies that one Wal-Mart

supermarket can displace over 1300 Indiansmall retail stores and thereby render around

3900 persons jobless. The employment

created against this in that supermarket will

be 214 (or maximum 225, which is the

average in the US). Clearly, there will be

severe job losses if giant MNC supermarkets

are allowed entry into the Indian market

According to the National Sample Survey

Organization's survey of employment andunemployment in 2009-10, the service sector

category that includes the wholesale and

retail trade (besides the much smaller

segment of repair works for motor vehicles,

motorcycles and personal and household

goods) provided jobs for 44 million in the total

workforce of 459 million. It is no doubt true

that the impact of foreign-invested retail

would be restricted to the urban areas since

its entry as of now is permitted only in cities

with a population of more than one million.

But this is where the employment in trade

would be the highest. As many as 26 million

workers of the 44 million employed in the

service sector are located in urban areas.

Many of these workers find themselves in the

services sector (especially in the retail trade)

because of inadequate employment

opportunities in agriculture andmanufacturing. Out of the 71 million jobs in

services in the urban areas, around 36 per

cent are in the retail and wholesale trade and

repair services. In sum, from an employment

point of view, this is a sector that is central to

livelihoods, however precarious some of

those jobs may be. As an employer of last

resort, it serves as a poor substitute for the

missing social security programme.

Article by-Shonik bhasin (MIB- I year)

15


17/22

1. Iran warns Gulf countries not to replace its

oil: Mohammad Ali Khatibi

TEHRAN: Iran warned its Arab neighbours onSunday not to raise crude output to replace

Iranian oil in the event of an embargo by the

European Union; Tehran's OPEC Governor

Mohammad Ali Khatibi was quoted as saying.

"The consequences of this issue are

unpredictable. Therefore, our Arab neighbour

countries should not cooperate with these

adventurers and should adopt wise policies,.

2. Honda Motors may spend $650 million to

restore flood-hit Thai plant

TOKYO: Honda Motor Co will completely

overhaul its flood-hit factory in Thailand in a

project that could cost more than 50 billion yen

($650 million), the Nikkei business daily reported

on Sunday. Thailand's worst floods in half a

century late last year hit Honda the hardest

among Japanese automakers, with its 240,000-

cars-a-year plant in the Ayutthaya Province in

central Thailand submerged under water.

3..China knocks US sanctions on state-run firmover Iran

SHANGHAI: China has criticised the United States

for imposing sanctions on a state-run oil firm for

exporting petroleum products to Iran, saying the

move was "without reason". Washington on

Thursday slapped sanctions on China's Zhuhai

Zhenrong Co., barring it from doing business in

the United States, saying it brokered delivery of

more than $500 million worth of gasoline to Iran

from July 2010-January 2011.

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I n t e r n a t i o n a l b u s i n e s s - N E W S


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4.Japan frets over EU downgrades

TOKYO: Japanese Finance Minister Jun Azumi on

Sunday expressed worries over his nation's own

sovereign debt rating after Standard and Poor'sdowngraded nine debt-laden EU countries,

including France. "Unless Japan shows that we

are swiftly securing stable financial conditions

and rebuilding fiscal policies... it will be us next

time," Azumi told reporters.

5.France rating could go lower, but no euro zone

break up: S&P

BRUSSELS: France risks another downgrade of its

sovereign credit rating if its public debt and

budget deficit deteriorate further, Standard &

Poor's said on Saturday, a day after it cut the

country's top-notch AAA rating by one notch to

AA+. "The deficits could increase from the

relatively high levels where they are already and

reach certain thresholds in the general

government debt and deficit ratios, which might

lead to another lowering of the rating," S&Pcredit analyst Moritz Kraemer told a conference

call.

6.JPMorgan could lose $5 bn from PIIGS

exposure: Report

MILAN: JPMorgan Chase & Co could lose up to

$5 billion from its exposure to Portugal,

Ireland, Italy, Greece and Spain, Chief

Executive Jamie Dimon said in an interview

with Class CNBC, carried in Italian newspaper

Milano Finanza on Saturday. Dimon said the

bank was exposed to the five countries (PIIGS)

to the tune of around $15 billion

7.Apple reveals list of global suppliers in

supply chain audit as Tim Cook ushers in an

era of greater transparency

SAN FRANCISCO: Apple revealed its once

closely guarded list of global suppliers on

Friday, taking a dramatic and unprecedented

step in response to harsh criticism that it was

turning a blind eye to dismal working

conditions at partner factories.

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19/22

8.China forecasts 10% growth in foreign

trade: Xinhua

China is predicting sharply slower foreign

trade growth of about 10 percent year-on-

year in 2012 as officials forecast "grim" export

prospects, the official Xinhua news agency

said Saturday. The forecast growth for the

year ahead by China's top financial planning

agency is far slower than the 22.5 percent

growth achieved in 2011 when the nation's

foreign trade hit $3.64 trillion, Xinhua said,

citing customs data.

Compiled by

18

Yash Vardan Singh


Batch -2012-2013


20/22

Left to Right:

4. A right to use another person's property.

5. When a business is being shortsighted regarding the needs of its

customers, only focusing on its products or short range goals and missing

marketing opportunities.

6. Bond issued on the Japanese market in currencies other than yen.

8. A statement signed by a person authorized to take oaths certifying to

the authenticity of a document or affidavit.

C R O S S W O R D

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21/22

11. The point at which a developing country's eligibility for Generalized Systemof Preferences (GSP) is terminated for the X`reason of sufficient economic

progression.

12. The charge made for hauling freight via carts, drays or trucks.

14. Materials placed around cargo to prevent shifting or damage while in transit.

15. Fixed margin within which exchange rates are allowed to fluctuate.

16. A customs document permitting the holder to carry or send merchandise

temporarily into certain foreign countries without paying duties or posting bonds.

Up to Down:

1. The charges paid by a ship entering or remaining in certain ports.2. The arranging and packing of cargo in a vessel for shipment.3. A certificate issued by the agency of a national government indicating thatan export shipment has been inspected and is free from harmful pests and plant

diseases. This is called. Inspections.

7. Result of a transaction that increases earning per common share. Thisis..effect.9. A structure built for the purpose of mooring a vessel; also called a pier.10. A derogatory term for someone who opposes or disapproves of new

technology and/or new methods of working, often because the changes

threaten jobs.

11. A controlled temperature shipping container.

13. In international transportation, a charge for the failure to remove cargo from

a terminal within the allowed free time. Also, a charge for failure to load or

unload a ship within the allowed period

All entries should be mailed at [email protected] by 31th January, 2012 23:59 hrs

One lucky winner will receive cash prize of Rs. 500/-

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22/22

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