MBA Ist Semester Management Concepts And Applications Short Questions Answers

BBA 3rd Year Recent Trends In India Foreign Trade Long Question Answer Paper

Consulting Opportunities in Commonwealth of Independent States (CIS): After the breakup of erstwhile Union of Soviet Socialist Republics (USSR), the Commonwealth of Independent States (CIS) was created in December 1991. The CIS unites the countries of Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Emerging from the controlled soviet economy, the CIS countries are united in their quest for economic development.

Sectoral Coverage / Services : The nature of consultancy services varies in its content and extent The Reserve Bank of India classified management and engineering services under other business services as per WTO classification which is indicated in their publication ‘India’s invisibles: Given the recent spurt in contributions from the services sector, efforts are underway to provide accurate estimates of the services industry size, however such efforts may not offer the expected results, since the consulting industry by nature is very diverse and encompasses a wide array of services and sectors. Many of the services and sectors overlap and it is not possible for accurate estimation.

Export Performance of the Indian Consulting Industry: An analysis of the consultancy contracts secured by Indian project overseas has been carried out by Exams Bank of India. As per the analysis, the geographical dispersion of contracts secured during 1995-96 to 2000-01 indicates that consultancy contracts were secured largely in West Asia which accounted for 39% number wise and 46% value wise followed by South East Asia and Pacific and South Asia. South East Asia constituted 22% both by number and by value whereas South Asia was 18% number wise and 16% value wise. According to the 2002 data of the Federation of Indian Export Organizations’ (FIEO). India’s share in global trade in services was about 1.3%. India’s share of consultancy exports is about 0.5% of global trade in services.

Competitiveness of Indian Consultancy Exports: International firms are larger in size and operate across countries which give them market access to these countries and also the opportunity to tap the market for consulting business. However, Indian consulting organizations are growing with great pace to compete with international organizations.

Local presence in the countries benefits multinational organizations in liaisoning with clients in these countries with sustained business development resulting in better prospecting record with large expenditure on business development when compared to Indian firms who largely depend on proactive business development in these countries at low business development cost.

BBA 3rd Year Recent Trends In India Foreign Trade Long Question  Answer Paper
BBA 3rd Year Recent Trends In India Foreign Trade Long Question Answer Paper

Government Initiatives : In the recent period, the trade policy in India reflects the strategic importance of India’s comparative advantage of trade in services. The services sector has been identified as a thrust sector for trade policy. The Foreign Trade Policy, 2004 – 09 has announced the setting up of Services Export Promotion Council to map opportunities for key services in import markets and to develop strategic market access programme.

Some of the key initiatives of the government in promoting exports of consultancy services are through Market Development Assistance (MDA), Market Access Initiative (MAI) scheme, proactive EXIM Policy and EXIM Bank schemes.

Government also provides exemption on service tax for export of consultancy services. However due to lack of clarity in the provisions in the present notification, consultancy export may be affected.

Income tax exemption under section 80’O’need to be reinstated to enhance consultancy export.

Strengths and Weaknesses of Indian Consulting Industry: The major strengths of Indian consulting organisations include professional competence, low cost structure, diverse capabilities, high adaptability and quick learning capability of Indian consultants.

The major weaknesses of Indian consulting organisations, which has hindered the export growth of consulting sector in the country, are low quality assurance, low local presence overseas, low equity base, lack of market intelligence, low level of R&D.

Consulting Opportunities in Commonwealth of Independent States (CIS): After the breakup of erstwhile Union of Soviet Socialist Republics (USSR), the Commonwealth of Independent States (CIS) was created in December 1991. The CIS unites the countries of Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine. Emerging from the controlled soviet economy, the CIS countries are united in their quest for economic development.

Considering the consulting opportunities which would follow economic developmentinitis in the region, this region has been selected for a study of the export potential for consulting service For purpose of this study, two countries i.e. Kazakhstan and Turkmenistan have been selected detailed study. The country profiles of both the countries are given in the following way:

1. Kazakhstan: Kazakhstan is a member of the CIS and an erstwhile member of the USSR.TK capital of the country is Astana. Kazakhstan was one of the earliest and vigorous reformers amor the countries of the former Soviet Union. In 2003 Kazakhstan’s estimated GDP was US$30.8 billion an increase of 9 % over 2002. Per capita GDP was US$1,794. Services contributed 54.8 %, industry 37.8 %, and agriculture 7.4 % to the GDP in 2004. According to 2004 estimates, the state revenues are US$8.67 billion and expenditure is US$8.968 billion, Kazakhstan’s current rate of inflation is 6.9% slightly higher than the 2002 rate of 6 %.

The sectors, which show maximum potential for consultancy services in Kazakhstan, are geology and mining, transportation, telecommunication, tourism sector, urban development sector, health sector and energy sector.

2. Turkmenistan : Turkmenistan, southwest of the former Soviet republics of Central Asia, is located on the eastern shore of the Caspian Sea.

In the early 2000s, the contribution of Turkmenistan’s state-run agriculture sector to Gross Domestic Product (GDP) has increased under close state supervision.

The sectors which show maximum potential for consultancy services in Turkmenistan, include geology and mining, construction, health, urban development and agriculture.

Consulting Opportunities in Southeast Asia Region: Southeast Asia is located on the equator, which means almost the entire region falls within the humid tropics and covers an area of about 4,100,000 square kilometres.

For purpose of this study, two countries i.e. Vietnam and Indonesia have been selected and studied in detail. The country profiles of both the countries are given in the following way:

1. Vietnam : Vietnam is located in Southeast Asia, bordered by the Gulf of Tonkin and the South China Sea to the east, China to the north, Laos and Cambodia to the west, and the Gulf of Thailand to the south.

In 2004, Vietnam’s GDP was US$227.2 billion. The national GDP has shown impressive growth and Vietnam is one of the fast growing economies in the region. Vietnam’s economy is expanding at an annual rate of more than 7 % and is one of the fastest growing in the world. Agriculture had the dominant contribution in the overall GDP of the country. Its contribution has progressively decreased over the years with manufacturing taking the lead followed by services and agriculture.

The sectors, which show maximum potential for consultancy services in Vietnam, are manufacturing (textile and garments), energy (power), geology and mining (oil and gas), agriculture and rural development, transportation (highways) and tourism.

2. Indonesia : Indonesia is located in Southeast Asia. It lies between the Indian and Pacific oceans and between the continents of Asia and Australia, south of Malaysia and + northwest of Australia.

1d Australia, south of Malaysia and the Philippines, and In 2004, the GDP was US$ 827 billion with average annual growth of around 5 %. Over the last three years, Indonesia has made remarkable progress in achieving macroeconomic stability, in reducing the economy’s vulnerability, and in restoring external viability.

The sectors, which show maximum potential for consultancy services in Indonesia include geology and mining (oil and gas), manufacturing (petroleum, pharmaceuticals), agriculture and rural development, transportation (ports and railways) and telecommunication.

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