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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 just

happened “US debt downgrade” topic was the hot topic of the newspapers.

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”.

We received an overwhelming response from B- School students all across

the country for the “Students’ Article column and Pratik Singal from FMS,

Delhi has won the article of the month award.

Sandeep Mann, COO, Remorphing and Board Member for Institute of

Competitiveness writes about how cities can leverage their competitive

position to attract investment and what a long path Indian cities need to

tread to really interest investors.

The food of the soul is also served with the hope of providing more meaning

to your reading and time. And you would also not want to miss thecrossword 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 th is issue…

Google Motorola Mobility

Deal: A patent-conscious M

Downgrade of US Debt: An

analysis

FDI, cities and competitive

Food for Soul

IB News

Crossword

( Mail your views with and topic

[email protected])

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The newsletter is envisaged as an attempt to form a link with the latesthappenings 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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Prateek Singal

MBA-FT 2011-13

Faculty of Management Studies

Google – Motorol

On 15th August 20

announced the acquisition o

Mobility. The search and onlin

company is buying the co

approximately $12.5 billion (or $4

in cash. The price represents a pr

percent to the closing price

Mobility shares. The deal is said t

synergies for Google in the sense

thing that makes Google take a

front of Apple is Apple’s

manufacturing facility. The ‘power

tag had been annoying for Googl

time and this deal marks Google’s

entirely new segment of mobile h

another important aspect of the

17000 patents which Google gets

And according to this analysis, th

inside this mega deal is one o

reasons of the deal.

Google - Microsoft - Apple Patent

a Mobility Deal: A patent-Conscious

1, Google

f Motorola

advertising

mpany for

0 per share),

emium of 63

f Motorola

o have great

that the only

back step in

wn mobile

d by Google’

le for a long

entry into an

andsets. But

deal was the

ith this deal.

patent deal

f the major

ar

Every Corporation, espec

belonging to the technology

importance of Intellectual

ready to fight for it. In this te

never-ending battles to

intellectual property, techn

Microsoft and Apple had b

against Google. Ever since

its Android mobile operating

come under the co

of Microsoft and Apple, as th

directly rivals Apple's iOS

Windows. Microsoft and Appl

at each other's throats, but

are coming together to attack

David Drummond, senior vi

chief legal officer, Google h

mention to this in his blog.

the two titans — plus

companies — have bought N

old patents “to make sure

0

5000

10000

15000

20000

Number of

S T U D E N T A R T I C L E

Move

ially the ones

domain know the

roperty and are

chnology world of

manage their

ology giants like

een standing tall

Google launched

system, it had

petitive radar

search giant's OS

and Microsoft's

e had always been

ow it seems they

Google.

ce president and

d given a special

ccording to him,

racle and other

ovell and Nortel’s

Google didn’t get

atents

0



them,” he says, and are seeking $15 for every

Android device. The licensing fee makes it more

expensive for phone makers to license Android

(which is free) than Windows Mobile. “Patents

are meant to encourage innovation,”

Drummond writes, “but lately they are being

used as a weapon to stop it.” According to him,

Microsoft and Apple inflated the price of

Nortel’s patent portfolio, which according to

him, must draw legal scrutiny. “We’re not naive;

technology is a tough and ever-changing

industry and we work very hard to stay focused

on our own business and make better

products,” Drummond writes. “But in this

instance we thought it was important to speak

out and make it clear that we’re determined to

preserve Android as a competitive choice for

consumers, by stopping those who are trying to

strangle it.”

Infringement Lawsuits

It’s not only the purchase of patents where

Google had been failing but also the lawsuits

where Google had failed drastically.

Google had lost a Texas lawsuit that claimed

the core of Linux infringes on a privately held

patent, raising fears of similar claims against

other users of the open source operating

system.

The ruling is believed to be the first patent

infringement award over the Linux kernel,

which is used in all versions of the operating

system, including the Android smartphone

software.

A federal jury awarded Bedrock Computer

Technologies $5m from Google April, 2011.

On the contrary, On July 15, 2011 the United

States International Trade Commission (USITC)

ruled that HTC had infringed on two of the four

patents involved in its lawsuit with Apple. The

USITC also ruled that all four of Apple's patents

were valid.

So, where Google had been constantly loosing

lawsuits against Bedrock, Linux and Oracle,

Apple and Microsoft had been winning them

against other technology giants.

Conclusion

Hence, in this big intellectual property war

which is going to decide the future technology

leader, The 3 titans – Google, Microsoft and

Apple have been acquiring patents and filing

infringement lawsuits. This strategy had been

unsuccessful for Google until now but with the

acquisition of 17000 patents with Motorola

Mobility certainly sets the mood right for the

technology battle.

____________________________________

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Down

The Concept: Rating agency S

Poor's (S&P) lowered the 70-y

(prime) rating on long-term US de

(high grade). The agency had

outlook on the debt from stable t

April 2011, and had threatened a

the US government did not get

under

The inevitable has happened. The

there for long. Rating agency Stan

finally executed its threat to take

of the list of risk-free borrowers

time. The U.S. Government hit

rating agency for its mathemat

calculating the Federal debt. Whi

the error, Standard & Poor's, howe

rade of US Debt: An Analysis

Shra

ProfessDirector, School o

tandard and

ear-old AAA

bt to AA plus

lowered its

o negative in

downgrade if

its finances

control.

warning was

ard & Poor's

America out

for the first

back at the

ical flaw in

le conceding

ver, stood its

ground and stuck to the do

Other leading credit ratin

Moody's Investors Service a

have said that downgrade

lawmakers fail to enact

measures and the economy

many times has the US been d

AAA? Never. The US has be

1917 and has only faced

downgrade once. In 1995,

was president, a similar defau

credit rating agencies warne

At the time, the country had

nearly $10 trillion less th

Congress resolved that debt

the credit agencies removed t

What does a down

downgrade could scare b

foreign governments, away f

small consolation that the do

facto recognition of a de j

downgrade is both a warn

around the world to keep a l

part of an inevitable shift in

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

an Kumar Singh,

or of Economics,f Social Sciences,

IGNOU, (Retd.)

ngrade decision.

g agencies, viz.,

nd Fitch Ratings,

are possible if

debt reduction

weakens. How

owngraded below

n rated AAA since

the threat of a

when Bill Clinton

lt loomed and the

of a downgrade.

4.9 trillion in debt

an now. Once

crisis a year later,

heir warning.

grade mean? A

uyers, especially

rom US debt. It is

ngrade is only de

re situation. The

ing to politicians

lid on deficits and

he global balance

0



of economic power. A downgrade is a warning

to buyers of bonds and other debt that the

chances of not getting their money back has

increased, however slightly. In theory,

downgrades should lead to higher borrowing

costs for the issuer (in this case, the

government), since investors demand a higher

interest rate if they are taking a bigger risk. It

would also make it more expensive for state

and local governments, companies and

consumers to borrow money.

Critique of Rating Agencies: While the

downgrade itself has raised serious doubts after

the credibility of S&P, market behaviour across

the world has turned adverse. The downgrade

of the United States sovereign credit rating has

left many people speechless. Post-downgrade

announcement, Standard & Poor's, too, has

come under intense attack not just by a livid

Obama Administration but also by long-time

watchers of the rating agencies. ``It's hard to

think of anyone less qualified to pass judgment

on America than the rating agencies. The

people who rated sub-prime-backed securities

are now declaring that they are the judges of

fiscal policy,'' Surely, this will trigger a side show

of its own on the efficacy of the rating agencies.

Nobel laureate Paul Krugman has

likened S&P’s attitude to that of a young man

who kills his parents, then pleads for mercy

because he is an orphan. S&P and its sister

rating agencies, he says, have played a major

role in causing the current budget crisis in

America by blessing mortgage-backed assets

that later turned out to be worthless. Another

Nobel laureate, Joseph Stiglitz, has viewed

credit rating agencies as one of the key culprits

in the 2008 global financial crisis. The

bipartisan Financial Crisis Enquiry Commission

of the US Congress has concluded in its report:

“The three credit rating agencies were

key enablers of the financial meltdown … themortgage-related securities at the heart of the

crisis could not have been marketed without

their seal of approval.” Paul Krugman and

Joseph Stiglitz are not the only ones damning

the immense power that financial interests

have come to gain over governments. Voices

against financial interests now include powerful

politicians in many different countries, from

many different economic persuasions. Thomas

Birkland has called a, focusing event, in his book

titled An Introduction to the Policy Process. A

focusing event is a sudden and rare event that

0



sparks intense media and public attention

because of its sheer magnitude. Such an event

can make groups, government leaders, policy

entrepreneurs, news media and the public pay

attention to, and stay focused on, a problem till

a solution is found. The S&P downgrade may be

one such focusing event that powerful groups

may use to launch a wholesale attack on the

immense power over governments that financial

interests have gained in recent times.

Apparently irked at US rating

downgrade which has led to mayhem in global

markets in its Trade and Development Report

2011, UNCTAD said: “In light of the

irresponsible behaviour of many private

financial market actors, which has required

costly government intervention to prevent the

collapse of the financial system, public opinion

and policymakers should not trust again those

institutions, including rating agencies, to judge

what constitutes sound macroeconomic policies

and sound management of public finances”. The

sharp criticism by the UN body does not appear

misplaced as even earlier, several rating

agencies came under flak for giving high ratings

to various companies trading in U.S. mortgage

securities and which subsequently collapsed

during the financial meltdown in 2008. US

government securities are often used as

collateral by borrowers. Where sovereign debt

is concerned, credit rating agencies have a long

history of getting it wrong. That's mostly

because who do the sums have no sense of

history, politics or even culture. It has almost

become a fetish. The economic element of this

fetish is thus very new and gained ascendency

only in the last quarter of the 20th century. It is

part of what came to be known as the

Washington Consensus. The private sector

could over-borrow but not governments. [TCA

SrinivasaRaghavan, The Hindu Business Line,

August 8, 2011].

Reasons for Downgrade:The Bureau of

Economic Analysis tells that total US

government spending has risen to 37% of GDP

in 2011 from 27% in 1960.

(i) Tax Foundation reports that between

1986 and 2009, the percentage of Americans

who pay zero or negative federal income taxes

has risen to 51% from 18.5%.

(ii) All this is accompanied by increase in

the US national debt to 100% of GDP from 42%

in 1980. The US deal that broke the impasse

can, at best, be described as an interval in the

debt-ceiling pantomime. It does not solve the

government's fundamental problems — too

large fiscal deficit (about $1,000bn, or 7.5 % of GDP, in 2012) and too generous entitlement

(social welfare) programmes (relative to the

national willingness to pay taxes).

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The European Union has done a fix on

its sovereign debt crisis, and the United States

has brokered a deal with itself on its debt crisis.

The United States seems to be headed for a

double-dip recession, and house prices are

lower than they were nine years ago. But the

government finds no weapons left in its

armoury because too much public debt has

already been piled up, and the agreement with

Congress is to (of all things) cut spending, i.e the

opposite of a fiscal stimulus. US public debt in

2003 was $6.4 trillion, or about 60 per cent of

its GDP in that year. By 2008, public debt had

climbed to $10 trillion, and now it is $14.2

trillion, or about 98 per cent of current GDP.

(iii) Such trends have complex causes, but

two events occurred between 2003 and now.

One was the Iraq war, which, Joseph Stiglitz and

a co-author reckon, has cost the United States

some $3 trillion. Not all of that shows up in

public debt, but a good deal does. Then, after

the financial sector was allowed to run away

with the real economy and cause the collapse

ofLehman Brothers in 2008, the desperate

effort to prevent a second Great Depression

contributed to the addition of $4 trillion of

public debt (2008-11) in the last three years.

Among the large economies, the US now ranks

third on the debt-to-GDP ratio; only Japan and

Italy are worse off (T.N. Ninan, Business

Standard, August 6, 2011).

(iv)The S&P indicts policymaking that has

become less stable, less effective and less

predictable than what we believed. It is not

casting doubts on economic or fiscalfundamentals. American debt mounted steeply

due to the previous regimes' engagements in

Iraq and Afghanistan and the latter still figures

prominently without the rating agencies

frowning at the escalating costs of war.

(v) The health-care reform that chewed up

political capital and more than $800 billion of

stimulus spending has so far failed to deliver

the hoped-for growth in jobs. Mr Obama

inherited the in-box from hell: a financial

collapse, a prostrated economy, two wars. Bad

politics can skewer an economy through and

through, whatever its fundamentals. The US

economy is not in crisis, its politics is. According

to S&P, “difficulties in bridging the gulf between

political parties” was the major reason for the

downgrade. However, some of the problems

with US debt and taxes are structural. The US

has one of the lowest tax/GDP ratios among the

developed countries of the world: about 24% as

against an average that is ten percentage points

higher for the OECD, the club of the rich

countries, as a whole. At the same time, the US

has the most expensive healthcare system in

the world, with pharmaceutical companies,

hospitals, health insurers and lawyers

profiteering at the expense of the exchequer.

Inflated healthcare costs are, of course, a

function of politics.

(The further part of the article will be published

in the next issue)

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FDI, Cities and Competitiveness

Anand Mahindra once stated that any region

aspiring for a healthy incremental capital output

ratio (ICOR) of 4, with the usual growth rate of

8%, needed reinvestments to the tune of 32%.

Unfortunately, no region has savings matching

this figure, usually capping savings at 5-20%.

Naturally, this deficit has to be plugged with

foreign investment. All regions have to chase

higher and more sustainable planes of prosperity; falling in line with a Nietzsche kind

of directive to emerge as ‘exceptional regions’

with ‘exceptional inhabitants’. Though the

competitiveness of any region can be measured

in different ways, the enhancement of all such

levels would always be fuelled by further

investments.

The Gandhian thought that work remains so

long as there is a tear in any eye is

contemporarily matched by initiatives that seek

to provide a decent life for workers and citizensbe they from Brasilia, Vladivostok or

Hyderabad. Levels of affluence have been

correlated with quanta of foreign direct

investments (FDI) received, whether the trigger

was selfless service or ‘sacrificing one’s own

selfishness via making all prosperous.

Indeed, like any vanilla investment, FDI too is an

investment by an investor in a specific industrial

sector, which is highly linked to geographical

moorings, as in a parallel sense observed aboutinternational trade by Ghemawat’s CAGE

model. FDI would find its appearance in

industrial activity over a large

tract of land, or setting up marketing channels

or placement of offerings on buying shelves for

consumers or industrial buyers; but it

essentially resides in a city. The administrative

function of any commercial enterprise, willy-

nilly, is based in a city, maybe with production

facilities situated in the near or distant

precincts. Consequently, although FDI

influences the economy of a vast region per se,

it emphatically influences cities therein. So any

city wishing to shoot up its competitiveness has

to go gunning for FDI—for regions around it and

for its own direct upliftment. The same goes for

quasi-cities that spring up in and around SEZs.

Data over the past years would indicate that a

ranking can be developed for FDI attracted by

various cities, apportioned pro rata over their

GDP onto the state’s FDI. This shows that the

top winners are Delhi, Mumbai, Bangalore andHyderabad. However, as FDI winnings is a global

canvas battle, Indian cities are far from entering

such face-offs with other cities in the world. For

Indian cities, competitiveness via FDI still carries

a surrealist feel.

Tangible realism needs to be brought forth. It

needs no vociferous proclaiming that there is a

compelling urgency for all cities to project

themselves as branded destinations for FDI.Intense soul-searching and mapping of

competitive positioning alone shall enable every

city to carve out its unique appeal as an

investment destination, rather than a faceless,

generic, monolithic we-are-open-to-all-kind of

investments pitch. Aping the leading cities by

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C o r o ra te A rc t ic l e



the laggards shall be surely a futile and counter-

productive exercise. As Professor Porter

illuminates, factor advantages are to be created

not inherited. On the value chain,

the regions that are factor-led scores lower

than the ones that are efficiency-led, which

again score lower than the innovation-led

regions. Indian cities have to discover where it

is they have and can pitch for competitive

advantages and advantages that can be

sustainable.

An integrated analytic look at the four pillars of

Porter’s Diamond Model, done carefully, sifting

realistic assessments from biases and politically-

motivated slanting of facts, shall duly brightenthe path ahead. For instance, why should

Ahmedabad January 2011 Journal of

Competitiveness 97 ask for FDI in voice-based

outsourcings, when it does not have suitable

labor pool (as large as Bengaluru, Pune or

Delhi). Instead, it should walk into showing

itself as the best destination for concept

arbitrage, a knowledge kind of outsourcing,

drawing on entrepreneurial and managerial

traditions its people are very strong on.Bengaluru can’t beat Hyderabad on cost of

living index; why doesn’t it move its IT sector

onto high-end priced services. Why can’t Jaipur

be an all-season tourist hub, conceiving

adventure sports for its harsh summers? After

all, cities in Arizona are as hot as Jaipur and still

enjoy significant tourism.

Again, we have seen that attracting FDI is

shadily managed by Indian cities and

governments. In this world of online

connectivity, no city has a decent tell-all

website. Ironically, Holland maintains a better

FDI India site than does the Indian Union

Government! There is no serious activity to

associate an FDI investor with a local alliance

partner; and how can that be done, there is no

detailed profiling of local entrepreneurs who

can thus be brought together! Which city has a

dedicated think tank tracking what

cycle industries are undergoing in various parts

of the world? The investor is nothing other than

an organized or loosely-formed think tank,

acting for a large organization, seeking optimal

or maximal returns on investment (RoI).

Is this FDI investor being reached? Some itsy-

bitsy foreign tours with ministers and their

entourage meeting small pools of the Indian

community abroad never do the trick. Is

adequate faith being won over by showing

accountability and objectivity in governance,

inspiring confidence that investments wouldn’trun into hot weather down the line? If these

questions make policy-makers squirm, the first

tentative seedlings towards shaping

competitiveness have been sowed

.

1



Loyalty (Excerpts from Intimate Seeker)

Loyalty is the way in which a mature and

integrated mind behaves. Loyalty indicates

undivided wholeness of consciousness and

shows richness of the mind. When the mind is

not integrated it is feverish, disloyal and

opportunistic.

Disloyalty comes out of opportunism.

Opportunism is being short-sighted about one’sdestiny. Integrity or wholeness is essential to be

healthy A divided mind will gradually lead to

schizophrenia and other mental and physical

disorders. Loyalty is the real strength and will

have the support of the nature in the long run.

Fear and ambitions are impediments to loyalty.

Loyalty is needed both in the material and

Spiritual plane. To destroy, create or maintain

any institution, group or society, loyalty isessential.

Loyalty means believing in the continuity of

commitment. Honoring commitment is loyalty.It takes you beyond the duality of craving and

aversion.

Responsibility, dedication and commitment are

limbs of loyalty.

A loyal mind is a “yes” mind. The purpose of

asking question is to get an answer. The

purpose of all answers is to create a “Yes!”

“Yes” is an acknowledgment of knowledge. The“yes” mind is a quiet, holistic and joyful mind.

The “no” mind is an agitated, doubting and

miserable mind. Loyalty begins with a “yes”

mind and starts to perish with a “no” mind.

1

F o o d F o r S o u l



1. Germany finds euros 55 bn after

accountancy error

BERLIN: Germany is 55.5 billion euros ($78.7

billion) richer than it thought due to an

accountancy error at the bad bank of

nationalized mortgage lender Hypo Real Estate

(HRE), the finance ministry said.

Europe's largest economy now expects its ratio

of debt to gross domestic product to be 81.1

per cent for 2011, 2.6 percentage points less

than previously forecast

Full report on-

http://economictimes.indiatimes.com/news/int

ernational-business/germany-finds-eur-55-bn-

after-accountancy-

error/articleshow/10533086.cms

2. Chinese Carmaker to Buy Saab for e100

million

STOCKHOLM: China's Pang Da Automobile

Trade Co and Zhejiang Youngman Lotus

Automobile Co agreed to buy struggling

carmaker Saab for 100 million euros ($141.4

million), launching a new rescue plan for the

troubled Swedish group after months of twists

and turns.

Full report on-http://economictimes.indiatimes.com/news/int

ernational-business/chinese-carmaker-to-buy-

saab-for-e100-

million/articleshow/10525746.cms

3. Japan's factory output slid 4% in

September

TOKYO: Japan's industrial production fell more

than analysts expected, an indication that the

recovery from the March earthquake may be

stalling due to a yen at a postwar high and a

global slowdown.

Factory output slid 4% in September from the

previous month, the trade ministry said in a

report in Tokyo today, the first decline since the

disaster. That was lower than all 28 forecasts of economists surveyed by Bloomberg News, who

were predicting a median drop of 2.1%.

Full report on-


ernational-business/japans-factory-output-slid-

4-in-september/articleshow/10524558.cms

4. China's foreign trade to surpass $3

trillion mark

BEIJING: China's foreign trade will surpass $3

trillion this year, accounting for 10.5 per cent of

the world's total, a senior official said on Friday.

This year marked the 10th anniversary of

China's entry to the World Trade Organization,

and the country has grown to be the world's

largest exporter and second largest importer,

said Liu Mingkang, chief of China Banking

Regulatory Commission, at a financial forum.

The country's ratio of trade surplus to its GDP is

expected to fall to lower than 3 per cent this

year from 7.5 per cent in 2007.

Full report on-


1

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



ernational-business/chinas-foreign-trade-to-

surpass-3-trillion-

mark/articleshow/10518341.cms

5. BRICS nations set to surpass Mexico in

GDP per capita

MEXICO CITY: Mexico currently ranks with Brazil

and Russia in terms of gross domestic product

per capita but it is projected to fall well behind

those nations and other BRICS members in the

coming years, according to a study published by

the Mexican Institute for Competitiveness, or

IMCO.

IMCO's assistant general director, Manuel

Molano, said that while the BRICS bloc of

emerging market economies, which also

includes India, China and South Africa, currently

accounts for 18 percent of global GDP, Mexico's

share of the total has remained stagnant at

roughly 1.6 percent since the 1970s.

Full report on-


ernational-business/brics-nations-set-to-

surpass-mexico-in-gdp-per-capita/articleshow/10516248.cms

6. China eyes creation of ASEAN Bank

BEIJING: China is considering a proposal to set

up a regional bank to help its small and medium

enterprises (SMEs) invest in Southeast Asian

neighbors, fund infrastructure projects and

promote development in southwestern China,

two independent sources said.

After approval by the State Council, or cabinet,

China would formally invite members of the

Association of Southeast Asian Nations (ASEAN),

Japan and South Korea to each take a stake in

the ASEAN Bank, said the sources, which have

direct knowledge of the proposal.

Full report on-


ernational-business/china-eyes-creation-of-

asean-bank/articleshow/10508453.cms

7. NMDC to bid for Russia's Vincy Coal

NEW DELHI: Looking to buy 2-3 properties

overseas by year-end, state-owned NMDC is

likely to put a bid for acquiring 100 per cent

stake in Russia's Vincy Coal in two or three days.

Bid for Vincy Coal, which is estimated to have

coking coal reserves of 70-100 million tones,

will be submitted by November 1 by NMDC.

Full report on-http://economictimes.indiatimes.com/news/ne

ws-by-industry/indl-goods-/-svs/metals-

mining/nmdc-to-bid-for-russias-vincy-coal-in-2-

3-days/articleshow/10539620.cms

8. Reliance Industries Ltd spurts on

Valero Energy Corp takeover reports

MUMBAI: Reliance Industries may be in talks to

acquire US refiner Valero Energy Corp valuing

the latter at $27 billion, according to

international media reports. RIL may bid $48

per share for the largest US refiner, which is a

mighty 85 % premium to the Valero's current

share price of $26 per share, said UK's Daily

Mail newspaper on Wednesday.

Full report on-

http://economictimes.indiatimes.com/news/ne

ws-by-industry/energy/oil-gas/reliance-

industries-ltd-spurts-on-valero-energy-corp-takeover-reports/articleshow/10526120.cms

9. Foreign drug companies may have to

cut prices within few years of launch

NEW DELHI: Foreign drug makers may lose their

freedom to sell original drugs at exorbitant

1



prices within few years of their launch, a move

that could make them as cheap as their generic

versions.

Most original research products do not fall

under price control and global companieslaunch them at high prices saying they need to

recover the huge R&D investments made to

develop the drug.

Full report on-

http://economictimes.indiatimes.com/news/ne

ws-by-

industry/healthcare/biotech/pharmaceuticals/f

oreign-drug-companies-may-have-to-cut-prices-

within-few-years-of-

launch/articleshow/10514063.cms

10. India-EU free trade pact likely by

February

NEW DELHI: India and European Union are at an

"intense" stage of negotiations for reaching the

much-delayed free trade agreement, hoping

that a deal can be struck before their annual

summit in February.

Full report on-

http://economictimes.indiatimes.com/news/ec

onomy/foreign-trade/india-eu-free-trade-pact-

likely-by-february/articleshow/10539080.cms

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From Left to Right :

1. A commission paid by a manufacturer or supplier to encourage salespeople to sell their product

rather than a competitors’.

4. An employee of e.g. an hotel who provides a service to guests, such as handling luggage,

delivering mail and messages, making tour reservations, etc.

5. In business, to stop using pieces of Asset, for a period of time, but keep it in good condition for

when work can resume.

6. When a collective decision of committee or group is considered silly by its members individually,

this paradox is called……….

7. In property dealings, a vendor accepts the offer of the one purchaser but later it accepts another

purchaser's offer which has offered him the higher price. A term used for this situation.

9. Compensation or penalty charges instead of rent claimed by a landlord against a person illegally

occupying land or property.

11. The fee charged for, or the process of, transporting goods by lorry or truck.

12. It applies to those Bonds or convertible securities which can be bought back by the issuing

authority before maturity date and at an agreed price.

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13. The percentage charged by a bank for exchanging one form of currency or money, into another

that is more valuable.

15. A term used for a fast growing company that creates a lot of job opportunities. And also which

has grown by at least 20% in the last four years. It’s a US term.

16. The minimum number of people who must attend a meeting in order for valid business to be

conducted.

17. An added section of information in a letter or report.

18. A certificate which entitles someone to a parcel of shares. An issue of additional shares given to

existing shareholders instead of dividends.

From Up to down :

1. Profit made by a government from printing and minting banknotes and coins.

2. A contract’s clause in which contracting party is not liable if any unforeseen catastrophe happens.

3. A practice of competing till just before fall. A practice to pursue any tactic or method to the point

of danger or damage typically employed in competitive situations to cause the withdrawal of

adversary/competitor.8. A person or company who tries to avoid paying their debts

9. A high interest, usually unsecured, loan in which the lender often has the right to obtain shares in

the business which has acquired the loan. Sometimes used in management buy-outs.

10. A method, usually in manufacturing, which ensures an efficient flow of work in a production

process by taking into consideration any possible delays or problems which may occur.

12. A situation in which the price of a commodity to be delivered in the future exceeds the immediate

delivery price, often due to storage and insurance costs.

14. An annual party, dinner, or outing given by an employer for its employees.

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Ankur Dhoot (MIB -1st Year, Delhi School of Economics) has won the prize for Cross Word Solution of

August Issue.

Congratulations…………..!!!!

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C R O S S W O R D - L A S T I S S U E A N S W E R



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