International Archives - GUJRAT INDIA

Indian Furniture Exporters: Going Strong in the International Market

The Indian furniture exporter are making huge profits in their business owing to the increasing demands of Indian hand crafted wooden furniture in the global markets. The furniture exporters of the country are heading towards a brighter future with enormous export orders of ethnic Indian furnishings made with contemporary designs and exclusive woods like Sheesham, Sandalwood, Teak, Rosewood, Oak, etc. Export of furnishings is an age old business and the success of the industry lies in its strength to cater to the varying demands of the global market. Besides making a landmark in the international trading contexts, this industry has also made substantial additions to the Indian economy.

Having handcrafted real wood furniture built in the contemporary styles in your house is a matter of pride for the owner. There is nothing quite like exclusive hand crafted rustic furniture that would add a touch of traditional and royal styling to the house. Remember that wood is a natural material, and hence make sure that the one you are going to buy does react suitably to your country’s environment. Before placing an order with the Indian furniture exporter you must ensure that you are buying quality product that is best as per your knowledge. Within India, Rajasthan is known to have the best furniture exporters and manufacturer, operating in cities like Jaisalmer, Udaipur Jodhpur and Jaipur.

The demand and supply for antique Indian wood furnishings all over the world has increased manifolds in the recent decade. The Indian furniture exporters are enjoying their position of being the leading suppliers in the world. Over a period of time the country has established a chain of leading furniture manufacturing brands like Godrej & Boyce, Furniturewala, Zuari, Yantra, Renaissance, N R Jasani & Company, Furniture Concepts, Durian, Kian, Millenium Lifestyles etc. According to the statistics of a recently conducted survey, it has been revealed that the industry is generating an approximate turnover of Rupees 3,500 crore annually and is expected to grow by 20 percent in the years to come.

The furniture importer of numerous foreign countries like USA, Jordan, Djibouti, UK, Mauritius, Canada, Italy, Germany, Greece, Kuwait, and so on are always on the look out for genuine furniture exporters from India. Different kinds of furniture including all those required for residential, contractual or institutional purposes are exported in bulk quantities every year from. The international furniture importers can easily track the details of Indian furniture exporters and importers data with the help of online database companies like Infodrive India. These companies provide authentic records of exporters and importers data related to the trade with useful fields like Company’s Names, Address, Telephone, Fax Numbers, Product description, Quantity, Price, Duty, Date of Shipment, HS Codes, etc.

Where Has International Commercial Arbitration Come From?

If we are to understand fully the present role of international commercial arbitration, and what shape it is likely to take in the future, it is important to look at past developments that are the basis for our current system of arbitration. In short, to understand the future you need to understand the past.

Arbitration is a system of justice, born of merchants. In one form or another, it has been in existence for thousands of years.

The earliest law dedicated to arbitration in England was in 1697. In France, the French Revolution considered arbitration as a droit naturel and the Constitution of 1791 proclaimed the constitutional right of citizens to resort to arbitration. It was also included in the Code of Civil Procedure in 1806. The origins of the concept of arbitration in France go back to the ancient courts of Pie Poudre (from the French pied poudreux, meaning vagabond), set up by boroughs to settle disputes between merchants on market days.. The origins of arbitration go back to dispute settlement usages in ancient times, in Europe, in Greece and Rome, including Roman law, and in Asia.

Up until the 20th century, the national courts lagged behind in recognising the decisions of arbitrators. This may be because the courts saw arbitration as a rival, as well as being suspicious about the standards being applied in arbitrations at the time. Even in England, for long a centre for international commercial arbitration due to its pivotal position as the centre for shipping, insurance, commodity and financing businesses, arbitration was initially closely controlled by the English courts.

In 1883 the Court of Common Council of the City of London set up a committee to consider the establishment of a tribunal for the arbitration of trans-national commercial disputes arising within the ambit of the City. The initiative came from the London business community, which was becoming increasingly dissatisfied with the slow and expensive process of litigating in the English courts. As The Law Quarterly Review was to report at the inauguration of the tribunal a few years later:

“This Chamber is to have all the virtues which the law lacks. It is to be expeditious where the law is slow, cheap where the law is costly, simple where the law is technical, a peacemaker instead of a stirrer-up of strife”

In 1919 the world’s business community established the International Chamber of Commerce (“the ICC”). The ICC has been the voice of the international business community and has been a major driving force in the promotion of both arbitration as a mechanism for the resolution of international commercial disputes and the need for international regulations to uphold and support the arbitration process.

As world trade expanded, the need to create a mechanism for international recognition and enforcement of both arbitration agreements and awards in relation to international commercial agreements was regarded as essential.

In 1958 the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“the NYC”) was adopted. The NYC provides for international recognition and enforcement of arbitration agreements and awards by national courts. Since it was adopted, the NYC has been the cornerstone of international commercial arbitration and has represented a quantum leap forward for international arbitration. Lord Mustill described the NYC as a convention which: “perhaps could lay claim to be the most effective instance of international legislation in the entire history of commercial law”. The success of the NYC is illustrated by 3 factors:

144 countries are signatories to the NYC;
A body of international case law has developed in applying the NYC which has had a direct influence on international arbitration practice and law;
It is accepted that agreements to arbitrate and arbitration awards will be enforced by the courts of the countries that are party to the NYC.;

As international arbitration increased and the influence and benefits of the NYC became apparent new arbitration institutions began to be created as a supplement to ad hoc arbitrations. Each institution has its own arbitration rules and procedures and offers arbitration services that were initially influenced considerably by its own national environment. Whilst there are a large number of arbitral institutions, the major institutions are:

London Court of International Arbitration (“LCIA”), based in London (established in 1892);
Stockholm Chamber of Commerce (“SCC”), based in Stockholm (established in 1917);
International Chamber of Commerce (“ICC”), based in Paris (established in 1919);
American Arbitration Association, based in New York (established in 1926);
China International Economic and Trade Arbitration Commission (“CIETAC”), based in Beijing (established in 1956);
Hong Kong International Arbitration Centre (“HKIAC”), based in Hong Kong (established in 1985);
Singapore International Arbitration Centre (“SIAC”), based in Singapore (established in 1991).

In the early 1970s there was an increasing need for a neutral set of arbitration rules suitable for use in ad hoc arbitration. Under the auspices of the United Nations, arbitration rules were prepared by the United Nations Commission on International Trade Law (“UNICTRAL”). The UNCITRAL Rules cover all aspects of the arbitral process, providing a model arbitration clause, setting out procedural rules regarding the appointment of arbitrators and establishing rules in relation to the form, effect and interpretation of the award.

The UNICTRAL Rules were intended to be acceptable in both capitalist and socialist countries, in developed and developing countries, and in common law as well as civil law jurisdictions. The UNICTRAL Rules have achieved international recognition and are now widely used. Since 2006, UNCITRAL has engaged its Working Group II in the revision of the Rules which is now in a late stage of completion. The revised Rules are expected to be adopted by UNCITRAL in the summer of 2010.

A further historical landmark came in 1985 with the UNCITRAL Model Law on Arbitration, which is accepted by an increasing number of countries throughout the world; and many other countries (where they have not adopted it outright) have based their arbitration laws upon it. As the authors of Redfern and Hunter on International Arbitration (5th Edition) state at p. 76:

“If the New York Convention propelled international arbitration onto the world stage, the Model Law made it a star, with appearances in States across the world.”

Whilst accepting the significant advance brought by the Model Law, it soon fell behind the pace of the fast-moving world of international arbitration in at least two respects. Firstly, the requirement for an arbitration agreement to be in writing, if it is to be enforceable; and secondly, the provisions of Article 17 governing the power of an arbitral tribunal to order interim measures of relief. This resulted in the Revised Model Law, which was approved by the United Nations in December 2006. The Revised Model Law allows for the “writing requirement” to be defined in very wide terms, and recommends that an arbitral tribunal should have the power to issue interim measures.

In the last 25 or so years there has been an increase in the number of institutions providing arbitration services. In particular, in 1985 the Hong Kong International Arbitration Centre (“HKIAC”) was established; and in 1991 the Singapore International Arbitration Centre (“SIAC”) was established. More recently, in 2008 the ICC set up a branch of its Secretariat in Hong Kong and in Singapore. Also, in 2008, the LCIA established (together with the Dubai International Financial Centre) a centre in Dubai, known as DIFC-LCIA. And, in April 2009, the LCIA set up a satellite branch in India, known as LCIA India.

This brief summary of the history of international commercial arbitration shows that, throughout history, international trade has led to the creation of arbitration machineries and legal frameworks. In looking to the future of arbitration, one similarly has to look at the current and future needs of international business practice to consider what future developments will occur in the field of international commercial arbitration.

International Trade

International trade can be broadly termed as exchange of goods and services between two countries or across two international boundaries. Trade between nations existed from ancient times. International trade often had a significant influence in determining the socio-economic, political and cultural scenario of a country.

International trade between two countries is heavily influenced by the existing bilateral relations between the nations. During the early times, international trade was strictly regulated and was under the influence of high tariffs. During this period, countries mainly adopted the policy of mercantilism where the inflow of capital determined the prosperity of the nation. However, with the advent of globalization and industrialization during 19th century, these regulations have been relaxed and the concept of free trade has been adopted. In this model, the trade is not regulated by any government-imposed restrictions which include taxes and tariffs. All the developed and economically powerful nations including United States, United Kingdom and the entire Europe have been the strongest advocates of this policy.

There are several theories in practice for the purpose of determining the tariffs and patterns of international trade. These include the Ricardian model, Heckscher-Ohlin model, Specific factors and the Gravity model. However, the gravity model of trade presents a more detailed analysis regarding the trading patterns around the globe. In this model, the geographical distance between the countries and their economic sizes are considered while making the analysis.

In the current scenario, international trade is mostly regulated through the guidelines established by World Trade Organization. But, the trade between two countries is also influenced by the economic treaties between the countries. Some of these agreements include NAFTA between US, Canada and Mexico, European Union between 27 countries in Europe and MERCOSUR in South America.

Inspite of all the regulations involved in the process, international trade still offers several potential risks at the economic and political fronts. Some of these include cancellation of international export or import licenses, risks involved due to war, risk of imposing a ban on imported products after the shipment of the consignment and currency exchange controls.

The Challenges Faced by International Business

This article examines how the environment affects and creates conditions for either the success or failure of business organizations and how it operates to demand effective strategic thinking on the part of decision-makers if businesses are to survive and thrive.

Take the classic example of Mark & Spencer PLC, which began in 1894 as a single high street store owned by two men, selling all items said to be costing no more than a penny to the customer. Over the years it conquered the retail sector with branches in prime locations all over the UK, and in overseas territories, totalling more than 885 stores. Not only did Marks & Spencer evolve into the giant corporation which it is today by reading the changes in the environment well, and meeting the growing needs of more and more affluent consumers, it also influenced the shopping habits of its clients. The business firm is not a faceless entity; at best, it can be an icon of social and economic progress, and at worst become vanquished by its inability to read the environment, Woolworths and MFI being two recent examples of such failure.

How the environment impacts on the fortunes of the business firm is nowhere more evident than in the collapse of many business enterprises including financial institutions (e.g.banks) in the current worldwide economic downturn. Even starker is the effect of continuing bad weather either in the form of floods or snow on the viability of a whole range of firms in the UK. Had the environment represented by the UK government not provided a lifeline to some of the major banks in the form of taxpayer subsidies, or buy-outs, they would not have survived. Different political ideologies at different times affect the business enterprise in different ways. The collapse of communism and the breaking down of the Berlin wall in 1989, coupled with the Internet phenomenon resulted in the abolition of legislation preventing global communication and industrialisation. Since then there has been a plethora of international mergers, acquisitions and alliances which saw transnational corporations (TNCs) grow in size and economic power as never seen before. Denning (1993) has identified the interaction between ownership advantage (OA) brought by the TNC and the location advantage (LA) of the countries where TNCs seek to invest. Researchera identified synergies sought by TNCs in foreign direct investment (FDI) as being motivated by strategies for market seeking (MA), efficiency seeking (ES), and knowledge seeking (KS) respectively, depending on their reading of the business environment.

Before going any deeper, it is necessary to take stock of what is meant by the business firm, and what its objectives are, and proceed to analyse the process and effects of this rapid globalisation. A business firm is a legal entity. Unlike a sole trader, or partnership, it is required to be incorporated with rules and objectives that are documented. It may be capitalised with borrowings or by shareholder contributions. While the shareholders own the enterprise and have claims to sharing the profits, it may be managed day-to-day by paid employees. The objective of the firm is ‘to maximise its value to its shareholders’ (Van Horne, 1974). Historically, ‘maximisation of profits is regarded as the proper objective of the firm, but it is not as inclusive a goal as that of maximising shareholder wealth’ (op. cit.). There are difficulties even in this conceptualization where ‘maximising market price per share’ is preferred by some to ‘maximisation of earnings per share’ (op. cit.).

A business firm currently in the news is Blacks Leisure, which was on the verge of bankruptcy, when the current adverse weather conditions improved its fortunes by providing a market for its thermal wear products. Now it is planning to expand further. Meanwhile the adverse economic environment has encouraged Poundland offering cheap goods to fill the gap left by Woolworth’s demise. The British salt manufacturing firm Ineos Enterprises chose to cancel a 12, 000 ton shipment of industrial salt promised to Germany, diverting the stock to local authorities in the UK in dire need of supplies to grit roads covered by snow. It is a good example of the environment influencing decision makers of private firms to act in a socially responsible manner. This upholds Van Horne’s (1974) assertion that even at the risk of not maximising shareholder wealth in the short term, management of business firms ought not to ignore the need for ‘social responsibility’ which brings long term benefits although perhaps not immediately apparent.

As related to business firms, social responsibility concerns such things as protecting the consumer, paying fair wages to employees, maintaining fair hiring practices, supporting education, and becoming actively involved in environmental issues like clean air and water… However, the criteria for social responsibility are not clearly defined, making formulation of a consistent objective function difficult’ (op. cit.).

It is now generally understood that a business does not, and cannot function in a vacuum. It has to react to events occurring outside its factory and office walls. The very first concern should be a close awareness of competitors’ strengths and weaknesses vis-a-vis its products and services. Additionally, most analysts require awareness of the environment in terms of political, social, economic and technological factors which impinge on the business firm.

Other analysts have expanded these to: Political – how changes in government policy could affect decision making in the firm. For example, the UK government’s concern over clean energy has resulted in a decision to invite foreign firms to bid for the supply of offshore windmills over the next several years. Not only do the windmill suppliers but also a host of firms required to supply ancillary products and services could take advantage of this decision. Social – how consumers beliefs and interests change over time. An example is the changing demography of many more senior citizens being present in the population and concerns over their health. Economic – how taxation, (e.g. tax holidays), interest rates, exchange rates, and the ‘credit crunch’ affect individual firms. Technological – how product innovations, and new technology like the proliferation of mobile phones, (iPads), change consumer preferences. Legal – how changes in law, enforcing of minimum wages, and regulating working hours, affect business. Last, but not least are the Ethical concerns that underpin social responsibility issues. An example is the refusal to trade with regimes known to contravene human rights legislation. All these factors influence to change markets which businesses need to take into account and respond to, if they are not to lose market share and jeopardise their long term viability.

A business firm, although incorporated by law as an entity is by no means monolithic. More than its shareholders, it has other stakeholders with different, if not competing objectives and interests within its ambit. Starting with the managers, there are other employees who may, or may not be trades union members, along with the community where it is situated, and which it serves, having to take into account local authority strictures on waste disposal and other similar regulations.

Discussing foreign direct investment (FDI) of transnational corporations, Robert Pearce defines the global business environment as ‘the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making in resource use and capabilities. This includes social, political, economic, regulatory, tax, cultural, legal and technological environments’. Pearce accepts that business firms do not have any direct control over this environment, but that their success depends on how well they adapt to this environment. As seen earlier in the case of Blacks Leisure and Poundland, a firm’s ‘ability to design and adjust its internal variables to take advantage of opportunities offered by the external environment, and its ability to control threats posed by the same environment determine its success’ (op. cit.).

Firms also take advantage of savings offered by outsourcing. Careful consideration of the variables of communication networks, cultural compatibility and reliability, needs to be addressed. There are offshore development centres which offer call centre provision and other web related customised professional services with appropriate infrastructure support.

How an American firm adapted to cultural diversity in France is discussed by Daniel Workman (2008). He says that the Euro Disneyland, a ‘transplanted American theme park’ near Paris had lost $34 million over the first six months since it opened in April 1992. Even before it opened there was strong local opposition that it threatened French cultural sensitivities. A strict employee dress code and the outlawing of wine in the park, among other things, angered the Parisians. Eisner, the CEO of the parent company in Florida commented: “What we have created in France is the biggest private investment in a foreign country by an American company ever. And it’s going to pay off”. Workman avers that ‘Eisner has since learned to recognize French cultural traditions and quality of life, rather than focus exclusively on American business interests, revenues and earnings at the expense of the underlying French culture'(op. cit.).

Disney found that the first American CEO of Euro Disneyland even with the capacity to speak fluent French, with a French wife, and a recipient of awards from the French government was still unable to make it a going concern. It was only after Disney replaced him and 23 American-born senior managers with local staff, that Euro Disneyland began to make profits.

Banning wine in a country which believes that ‘a meal without wine is like a day without sunshine’, made Euro Disneyland an unwelcome proposition even before it started. American-style hot dog carts were not attractive to a populace famed for its culinary and gastronomic sophistication. Later deciding to use French language rather than English, was also a more than reasonable accommodation made by Disney. It was one of the essential components of its later success.

Cultural encoding also requires that the Americans respect the more feminine French culture’s dominant need for a friendly atmosphere, cooperation, low stress levels and group decision-making instead of focusing exclusively on money and materialistic success (Workman, 2008).

Another aspect of business life is the support (or its absence) from the state as an unavoidable component of the business environment. Like most developed countries, Canada provides government funding to business firms seeking to expand into international markets. The government body responsible is the Small Business Finance Centre (SBFC). The funding is in the form of grants and loans which could be between $1500 and $10 million. Success stories abound. A $34,500 grant enabled a Winnipeg firm, K9 Storm Limited to export body armour for police dogs to 12 countries, in North America and Europe. Another Winnipeg company, Airport Technologies received $12, 500 to develop a snow plough called ‘Snow Mauler’ now being exported to the USA. The most successful has been the Garrison Guitar Works of St. John’s, Newfoundland, which received a grant of $250,000 to develop five guitar prototypes, and now, as a multi-million dollar company exports 20,000 guitars a year to 29 countries. They also own 350 retail stores in North America.

An interest free loan of $8700 enabled Keith Longmire (Nova Scotia) to develop his hand-painted birdhouses enterprise to establish itself in the US marketplace, while Domaine Pinnacle (Quebec) received a $300,000 loan to fund equipment to ferment high-quality apple cider and achieve sales of over $1 million a year. Meanwhile, Agribiotics of Cambridge, Ontario, was awarded a $44,570 loan to develop a vaccine to protect corn from pests and win a contract from the University of Wisconsin. The Canadian government also helps individual firms with their business plans as a precursor to obtaining a grant or loan (Workman, 2008).

In an earlier paragraph this essay introduced the idea of foreign direct investment (FDI). This stood at $14 billion in 1970 ‘but increased over 140 times to almost $2,000 billion by 2007. A large part of the upsurge in global FDI has been due to mergers and acquisitions (M&As). It is these cross-border mergers and acquisitions which have deepened the economic integration of developing Asia with the global economy. Researchers investigating the increasing M&A activity in this region decided that financial variables in terms of liquidity in the source country and the perception of risk (environment) influenced the level of cross-border transactions. They also conclude that the ongoing global financial crisis is likely to sharply curtail the extent of cross-border M&A transactions although this is not entirely proven.

Analysts hypothesised five ‘waves’ of M&A activity in the past. These waves occurred during periods of economic downturn. Currently, a ‘sixth wave’ is recognised with China, India and Brazil emerging as global players in trade and industry. One of the main reasons for M&A activity to be at its height in a recession could be the rapid drop in the stock value of target companies. A major factor in the increase in global outward foreign direct investment (FDI) stock increasing from $150 million in the early 1990s to $1200 million in 2000 may have been due to the above factor. However, it is not possible to generalise when one saw the attempts at a hostile takeover of the UK firm Cadburys by the US firm Krafts and its final, more amicable outcome. Cadburys was far from being a struggling firm. Its share price was holding up and its asset value had not in any way decreased before the takeover attempt.

A recent United Nations Conference on Trade and Industry (UNCTAD) report stated that 29 of the world’s largest economic giants are transnational corporations (TNCs). The annual value-added business performance of the 100 biggest TNCs exceeded that of some nation states. How the rise of TNCs transformed world trade over the last 30 years can be seen from the following statistics. In 1970 there were about 7000 non-financial TNCs investing directly in other developed or developing countries. By 1992 there were 37,000 with 170,000 foreign affiliates. The latter accounted for $11 trillion worth of output. Against this, the total world trade amounted to only $7 trillion.

An important variable in the success of transnational corporations, mergers and acquisitions is the facility with which managers, employees and customers with differing linguistic backgrounds communicate with each other. The total number of languages spoken around the world has been estimated at 6913. This is the reality of the language environment. However, there are two ways by which the language problem has been addressed. One can establish a common language for business, the most widely spoken international language being English. Although numerically more people in the world speak Chinese (Mandarin), it is confined to the People’s Republic of China whereas English is used in countries as far apart as New Zealand, Australia, South Africa, USA, Canada, UK and almost all Commonwealth countries.

Increasingly however, there are language intermediaries who could be engaged to conduct business in the local language. The volume of the global language service industry is estimated to be somewhere around $12 billion and handling around 500 million pages of translation and localization every year. An example of a language services provider of this type is Lionbridge with ’50 offices, $375 million revenue and about 4000 people on its payroll’. Specialised software products such as ‘recycling the translators’ knowledge-base (called translation memory)’ are among many new developments in the language translation industry (op. cit.).

Another reason for keeping up to date with changes in the environment is that a business firm’s operational effectiveness can be jeopardised by not paying heed to such changes. ‘Due to the rapid diffusion of best practice, a productivity barrier is soon reached… Japanese car firms… dominated in the 1970s and 1980s… Lack of a strategic perspective has since held them back while other Japanese businesses like Sony and Cannon flourish (because they) did not sit back with a ready formulated strategy that worked in the past, but revised their strategic thinking taking into account the changing realities of world trade. Obviously, their resource base and mix would have had to alter, and continue to change in the light of changing circumstances.

Writing about mergers and acquisitions Robert Heller contends that buying another business is the easiest task for management in most businesses. However, more things can go wrong in hasty acquisitions as has been proved in the literature. Here too, it is strategy and continuous scanning of the environment and competition which can ensure success. Heller talks of the need to achieve ‘superior organic growth’ once the merger has been accomplished. His answer to how this is to be achieved is to have a ‘visionary’ at the helm. Neither the conservative who wants to retain the status quo, nor the pragmatist who wants change but relies only on those tried and tested somewhere else, can succeed. Only the visionary, often battling against the odds, (could) drive the company into the future.

Heller explains why the Silicon Valley companies have enjoyed acquisition success far beyond the norm.The buys, have been slotted into a receptive culture, in which new ideas are the currency and visionaries dominate -led by a visionary chief executive who has delegated all operating duties to others.

The permeability of the firm to the increasingly global business environment has been demonstrated with examples, throughout this essay. Vision and strategic choice determine the ever changing nature of viable and successful enterprises. A final example below should convince even the most sceptical of the truth of the above conclusion.

United Technologies Corporation is America’s 20th largest manufacturer and the 43rd largest US Corporation according to Fortune 500 list (2006) with 215,000 employees. UTC makes Otis lifts, Carrier heating and air conditioning, Hamilton Sunstrand aerospace and industrial systems, Sikorsky helicopters, Pratt and Whitney jet engines, and Chubb security systems. UTC has thousands of branch offices throughout the world. Internet and IT is the key to UTC’s success. It is obvious that the UTC chief executive’s command over the organization’s resources around the world accounts for its superior productivity and competitive advantage. But it is equally clear that his control over resources is the result of well-thought out strategic decision-making of someone in close touch with the realities of business in the 21st century.

References

Denning, J. (1993) Multinational Enterprises and the Global Economy. Wokingham, Addison-Wesley.

Van Horne J.C. (1974) Financial Management and Policy. Prentice-Hall.

Workman, D. (2008) Disneyland Resort Paris Lessons; American Management Adapts to Cultural Diversity in France.quoted in ‘Boss is the King of Cool’ (The Sunday Times, 18th March 2009).

Economic Basis for International Trade!

Trade is the exchange of commodity and services. International trade represents business transactions taking place at the global level, and it is fundamentally different from domestic trade. Trade at international level demands huge investments, network of franchisees and proficient people to run the show. Many corporate giants are trying to capture Asian markets, especially Indian market, which has become the industrial hub for such economic activities. Economic liberalization has been the focus of many developing countries for the past two decades and this has allowed multinational companies with huge investment potential to enrich the weaker economies.

International trade tries to generate more foreign exchange, which is always good for the economy. Say, if a country has rich resources of petroleum, naturally it will try to sell the surplus to countries not endowed with such natural resources. That is why Middle East nations are prosperous and economically independent. The diversity in productive possibilities in different countries is due to the presence of limited natural resources. When a country gets a head start in a particular product, it can become the high volume, low cost producer. The economies of scale give it a significant advantage over other countries, which find it cheaper to buy from the leading producers than to make the product themselves.

Every nation must try to specialize in the production and export of those commodities, which are available in plenty and must import such products in the production of which they have a resource deficiency. It should be remembered that there are severe man made barriers in international trade such as, export duties, quotas, exchange restrictions etc.,that hinder the free movement of products. Nevertheless, it is not also possible for a country to produce domestically every kind of product. In spite of all these restraining factors, global trade is thriving, thanks to the advanced technological aspects introduced in communication and faster means of transportation. Distance is no more a constraint and the world has become one small global village.

All domestic transactions, say in a country like India take place in rupees, which is the legal tender in the country. However, in its trade with other countries like USA, Germany, Japan, France and Britain, the payments have to be made in terms of dollars, marks, yens, francs and pound sterling respectively. The mechanism through which payments are effected between two countries having different currency systems is called foreign exchange. It may be also defined as the exchange of money or credit in one country for money or credit in another.

Foreign exchange rates can affect relative prices and net exports. A rise in the a nation’s foreign exchange will depress that nation’s net exports and output, while a fall in the foreign exchange rate will increase net exports and output. Because of the significant impact of exchange rates on national economies, countries have entered into agreements on international monetary agreements.

An Ardyss International Review

There is quite a bit of information floating around on the internet about Ardyss International. Most of it is about the famous reshaping garment, the “Body Magic”. But, what really is Ardyss International?

Ardyss International is a health and wellness company that manufactures reshaping garments, skin care and nutritional products to help a person restore their health inside and out.

The Garments

The garments were designed by an Orthopedic Surgeon and Engineer to provide the best results possible. These garments are medical grade and use a material called power net. Plastic surgeons use the garments to help redefine a person’s shape after surgery by compressing the loose skin during the healing process.

Each one of the garments has a specific purpose. Whether it is for back support, lower back support, decreasing the waistline, or enhancing the bust, you will begin to see the benefits immediately.

The Nutritional Products

Ardyss International has been known for the Body Magic 2 Step System. The system is one of the garments plus the nutritional products. The flagship product is the Le’Vive Juice which contains the top 5 antioxidant fruits – Acai, Mangosteen, Noni, Goji, and Pomegranate. There are now three formulas of Le’Vive. The Le’Vive Plus contains Cranberries and the Le’Vive Green has artichoke, milk thistle, licorice, ginger, and alfalfa among other ingredients.

The other nutritional supplements include liquid multivitamins that are easily absorbed into the body at the cellular level. Ardyss also has a detox system, fiber supplements, omega 3-6-9 supplement, meal replacement shake, and digestion support just to name a few. All of Ardyss International’s products work together to provide maximum results in weight loss or wealth maintenance.

The Skin Care System

Most people are not aware of the skin care system from Ardyss. It is made by the same company that makes another name brand line of cosmetics. The system includes detergent free exfoliating face wash, toner, moisturizer, and mask. The main ingredients include jasmine, aloe vera, green tea, vitamin A, and vitamin C.

The Compensation Plan

Ardyss International has a very generous compensation plan. They offer their Distributors a total of 10 ways to get paid. Some of the bonuses include the retail commissions, generational bonus, and the Power Start matching bonus. This compensation plan has given the opportunity for many new distributors to earn five figures within their first six months and advance in rank.

Recently, Ardyss International has added a Mercedes- Benz car program, health insurance, and an updated replicated website and an executive training program for new distributors.

The Marketing

Ardyss International has been around more than twenty years. They are opening new markets all over the world. This company is expanding by leaps and bounds and is also updating their training programs. The launch of the new executive training with Ardyss University will have the Ardyss International team ready to take their business to the next level.

Ardyss International has been featured in Success from Home magazine and has their own magazine called Vive. Their marketing journal, the Ardyss Journal, tells the story of Ardyss and their products. The Reshape, Revive, Restore DVD features testimonies of some of the Platinum Presidents within the company.

The Opportunity

Ardyss International has three ways to start your business. You could become a preferred customer by just paying the membership cost and purchasing your products at a discount. You may also join with their Autoship program where your products will be delivered to you on a monthly basis and you can also build a business under this option. The Power Pack is what allows you to participate in all ten forms of compensation including the Power Start program.

No matter what option you choose, you will be able to upgrade your membership. If you want to upgrade to Power Pack, it is advised to do so within the first 90 days of starting your business.

Giving Back

The Ardyss Cares program provides meals to malnourished children in areas that have a high starvation rate. Each distributor is eligible to purchase a package to help a child in need.

If you are looking for a network marketing company that has the products, compensation, and marketing available to assist you in achieving success, then I have no doubt that Ardyss International could be the company for you.

GDI – Global Domains International Inc Review

If you have been on the internet for any length of time looking at business options you will eventually come across someone promoting GDI to you. So this article is to answer some of the basic questions about GDI. Is this Business opportunity a scam? Do they have a product or service that is worthwhile? What is the potential of this opportunity? I will seek to answer these questions as objectively as possible.

Scam!?

If you have come to this article you are probably already considering whether GDI is a serious business opportunity or a scam! To determine if GDI is a scam the first question one must ask is are they marketing a worthwhile product or service or are they just another MLM or pyramid designed to take your money without giving you anything other than promises of great rewards and riches? The answer yes they have a genuine product/ service. In this case web hosting.

The Service Outlined

They provide a web hosting service. It is true you can get free website hosting on the net, in fact this very article is an example of a free web host and you can get good results from them, but there are a number of things you sacrifice.

Firstly if you are using a free web host provider there is always some form of cost, normally they require you to carry free ads on your site. (web1000 is an exception but you can’t even put banners on it and its editor is painful to use).

While having ads on your website at first this may not seem to be a problem, consider this, if you want this site to be your main business portal and hub, you may end up advertising your biggest competitor, not a smart move. You don’t have ownership of your site. You may own the intellectual material but if the free web hoster changes their rules, goes out of business or just updates the way their system works there is not a thing you can do about it. Even with blogger you have to share your AdSense revenue with them 50-50. That’s why I recommend if you are serious about having an online business your main site be one that you own and that means paying for it. Also after I lost 48 blogs overnight because blogger felt they didn’t all fit with their terms of service you learn – you get what you pay for.

In the case of GDI this means $10 a month. That’s US Dollars, so if you are in Australia like me, thats not so good, if you operate in Euro’s or pounds, that’s great for you. For that you get a web site, 10 pages (plus a feedback and guest page 12 total), 10 e-mail addresses and a domain name, its also includes a domain/site builder, domain and e-mail forwarding, use your own web builder, parking service. However each page can have a huge amount of data. The 10 e-mail address means if you have 10 different businesses, affiliates programs or whatever you can devote an individual e-mail to each one and can with the forward even arrange to have them forwarded to a single box.

The other great advantage is the ability to choose a domain name. Most of the good .com names are long since gone. Further in the case of many of the other endings like .au, .us, .uk, etc many companies exist solely in buying up the best domain names to make a killing selling them to someone else at highly inflated prices. GDI with the .ws avoids this pitfall by ensuring the domain name is not sold as a separate entity, but only with the web hosting service. This stops domain name hording in its tracks. .ws is still new and now is the time to get the domain name you want. No additional $20 yearly fee for just the domain name registration.

The Business Opportunity

The fact is not everyone out there needs a web host. Let’s examine why one has a website. Normally one either has a website for one of two reasons – BUSINESS or PERSONAL.

In the case of personal websites many people want their own personal e-mail addresses and have a website for a number of reasons, stay in touch with family with an open letter, express their beliefs or opinions on a world stage, to satisfied their own ego and sense of importance, create photo albums, join a community, etc. Some people will pay the $10 a month to have a website. As time progresses I think this will increase as more and more people become web aware and want to have their own address/ place on the web. With the highly transitive nature of the human population with greater movement than ever before in the history of the world one of the best ways people will be able to stay in contact with friends will be via the net. Consider how many people from school do you know twenty years later. Have you moved city, state, country, if you have you probably have lost contact with them. If you wanted to track them down how would you? I know I would do it via the web. This will be increasingly easy as people have personal web pages.

In the case of a website for Businesses most companies have a website for further advertising their company, some do have direct sales as well over the net, and some are nothing but internet based businesses, e.g. Ebay. In the case of a website for a business, I would think that what GDI offers is not big enough to meet their needs. Save for a landing page, redirect page or just the Domain name, GDI is aimed at the small internet business user. Thats not necessarily a bad thing but it is fact that has a bearing on the business opportunity. If GDI wants to grow further they will need to look at offering reasonable upgrade packages for the bigger players.

In the case of a small first time business wanting their own website with six pages GDI is not a bad option as it also gives them a source of secondary income.

It has the potential to be a good source of income as each person you bring in gets you $1 a month. Not a huge amount really, you would need 10 people just to pay for you hosting fee, but the winner here its that you get a $1 for each person they introduce down to five levels, the power to leverage the work of those below you is what appeals here. That can result in some good returns. You won’t become a millionaire over night, but you can have a great income stream.

You might be thinking, I’m too late and missed the GDI wave. No I don’t think so, not at this time this article is written. GDI members now are in the tens of thousands, not until its reaches 100’s of millions will the wave subside. I don’t think new customers will ever complete dry up either, because each year more and more tech savvy students finish school, and they brought up to believe they each need their own modern gadgets, including mobile phones, e-mailing, and even their own personal website. For kids who are spending $50 plus a month on mobile phones alone, $10 a month for their own website is nothing. I’m waiting for the day you no longer send in a resume into a prospective employer but just give them your web address and they can look up your life themselves. Thus I think the potential of GDI is long term, yes after the initial wave there will be an eventual slowing – there is no such thing as an infinite possibility – there are 6 Billion people on the planet, once the majority of them is a customer you have reach the finite limit. Any company unless they have plans to further develop a service or introduce new products knows a market does reach a saturation point where growth slows. Not so good for an MLM company as their customers are also their business partners. Any MLM that wants to succeed must either sell a product the needs replacement over time – i.e. tupperware (where did I leave that lid, oh well time to another party and order another), or offer new services or products to the same downlines.

There are numerous ways to advertise GDI online. I myself am no great salesman. I hate cold calling, I hate door knocking, I hate feeling like I am invading someone personal space or coming across as pushy. That’s why I love internet advertising. The buyer is in total control, no pushy salesman, don’t like the sales pitch go to another site. There are several program set up to advertise GDI for you, programs like turbo GDI and Hits2U, both are cost effective.

In summary, if you need a web host, GDI is a option, particularly in relation to Domain names, if you don’t need a web host and don’t know someone else who does then its probably not for you.

Importance of Language Translators in International Business

Language translation is an important aspect for companies to develop as they spread their reach overseas. There is a great potential for any business to grow rapidly when it expands its services internationally. However, growing internationally is not as easy as it seems. There are many small intricacies and minute details that may often be overlooked. One of these details, which must always go smoothly but is regularly taken for granted, is business translation.

Value of a business translation process

Business translation that is not up to scratch has the potential to break an international business negotiation. Without proper translation services to ensure that both parties are on the same page, both parties may end up facing many different legal challenges. For any business or company to be able to increase its commercial standing and reputation with all overseas partners, such details and intricacies in the negotiation process must be taken care of. To ensure that there is adequate support for all international dealings, a business needs to look for a translation service that can provide expertise, reliability, trust, professionalism and transparency.

Challenges with the process

The translation of commercial and business documents is not necessarily an easy task. The technical language used and the nature of the text that needs to be worked with can make the task a difficult one. Translators also face challenges due to the enormous potential harm that may result from any mistakes. Legal, financial and technical negotiations are always difficult to deal with. Getting past the considerations, negotiations and discussion of a commercial deal is a great relief. It is usually after this time that professional translators are hired to go over the documents. Once the discussions are finished and agreements have been reached, satisfied parties will not be keen to go back over the legal issues. Such dealings of an international nature often have large amounts of money at stake. At this stage, translators need to be competent and incisive as to the best way to deal with a business translation. The ability to maintain clarity and recognize sensitive areas is absolutely necessary so they do not end up creating any fresh disagreements.

Requirements of a good translator

Efficiency and accuracy are important factors that are extremely essential for any good translation service. Translators need to be able to consult with legal professionals from all other fields so there is reliability and accuracy with any terminological challenges. The process also needs to be secure and ensure that there is complete confidentiality. Your translation partners should have many years of document translation experience, to ensure they are up to the task of handling valuable and important procedures. For any translation process to be successful it is important that the translators understand the intended use of the document as well.

Computers and automated translation services that are widely available online do not understand the data that is put into them. They provide raw, direct and duplicated translation of the words that are input. The deeper meanings of phrases are quite commonly distorted. The English to Arabic translation and English to Chinese translation of important business documents can only be precisely and accurately undertaken with the support of professional translators.

International Etiquette Tips – For Travellers on Business or on Holiday

Long plane rides lend plenty of time for reflection. On an 8-hour flight home from vacation this summer, I started thinking about how handy my business trip to-do list is, even for casual summer holidays like this one. Sometimes international travellers will head to the airport without thinking twice about how their destination might differ from their home country, or how their own customs and manners might fit in with another culture. In my opinion, it’s always best to prepare before travelling abroad: just a little pre-voyage homework can ease your adjustment to a new place and will demonstrate respect for your host’s nation and customs.

My Business Trip To-Do List

Research local customs. Just a bit of background work on your host’s country can give you an advantage with a potential partner or client: it will demonstrate that you are serious about the value of your business relationships and that you are respectful of their culture. Researching local customs and manners is perhaps most important; it can save you from many embarrassing blunders. Look up the procedures and differences in shaking hands, introductions and titles, dress codes, dining and table manners, body language, and appropriate arrival times.

Research current affairs. Before your trip, follow the news regarding your destination country. It is helpful in preparing you for a different political climate or atmosphere, as well as for keeping up with dinner conversations with your hosts. A note of caution: avoid discussing anything too controversial – you don’t want to jeopardize your business relationship with polemic small talk or dinner debates.

Learn a few new words. Though you are most likely doing business in English, don’t assume that you can get by everywhere with it. Learning a few key words or phrases in your destination’s native tongue can help you out of a sticky situation – and again can show your hosts that you have invested time and effort into learning about their culture.

Prepare a host gift. It is a kind gesture to offer your appreciation for your hosts by way of a gift. But first of all, make sure that it is acceptable – culturally and with company policy – for a business guest to give a gift. Once you have determined this, a small gift that represents your hometown or province is a nice way to share your culture as well. Make sure you investigate what is not appropriate: for example, in India the cow is considered sacred, so you would not want to give anything made from or with leather to an Indian host.

Just a few preparations before a business trip not only will make a good impression on your hosts, but also will make you feel more confident in yourself as you plan to navigate a wholly unfamiliar place. And this confidence could make all the difference in establishing that business partnership or sealing a successful deal!

Advantages and Disadvantages of International Trade

There is no doubt about the fact that every business hopes and makes efforts to spread its wings and expand the profit margins. Marketing and distributing your range of products in international markets is certainly a good idea. This will not only you to make your presence felt across the world, but also to remain competitive in the global market and leverage the untapped market segments where you can scale your business and make money.

Import from India or anywhere in the world requires a business to have a very strong network of channel partners like logistics companies, marketing firms, warehouses, suppliers, wholesalers, distributors, retailers, etc. However, all businesses cannot afford to manage a proper channel smoothly. In such a case, finding a great deal with a global or international trading company with prior experience, becomes need of an hour. Such a global trading program cannot only help you source your import export needs but also conduct a hassle free global trade without doing much.

Certainly, you may get great import exports business opportunities, but before forming any import export business plans, you must know the merits and demerits of the international trade –

#Merits –

1) Increases domestic competitiveness – importing or exporting your products enhances your competitiveness in domestic markets. If you are able to get imported products at same or lower prices than those you get from domestic markets and vice versa, then certainly you will earn profits that will improve your competence level.

2) Rise in sales and profits -if you are able to export from India or importing high or same quality products at a better profit margin then it is likely that your sales levels will rise and with this, your profits.

# Demerits –

1) Long-term process – exports from India or other fruitful import export business opportunities require a lot of time to be converted therefore a business must be patient to progressively achieve their desired goals. Also, it needs huge investment of time for a business to develop strategic partnerships with the different parties in the channel.

2) Added licensing and other regulations, taxes, etc. – import export business plans must only be formed after understating licensing, taxes and other related regulations of the country in which you plan to target your audience.

Staring a global trading business is not an easy task, it require both time and money. However, with Uniglobe finding fruitful import export business opportunities becomes much simpler and easier.