International Business ( to Be Presented )

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Transcript of International Business ( to Be Presented )

International Organization

By: Ms. Jackie RaborarPh.D. Commerce Student

Why is there a WAR?

United Nations

United Nations

An international organization designed to make the enforcement of international law, security, human

rights, economic and social progress easier for countries around the world

What does the United Nations Do?

The UN was created to maintain international peace and security.

It also works to maintain friendly relationships between countries.

Lastly, it works to promote economic development of member nations.

What is the UN Global Compact?

“ The Global Compact asks companies to embrace universal principles and to partner with the United Nations. It has grown to become a critical platform for the UN to engage effectively with enlightened global business.”

– UN Secretary-General Ban Ki-moon

Millennium Development Goals

0 Eradicate extreme poverty and hunger0 Achieve universal primary education0 Promote gender equality and empower women0 Reduce child mortality0 Improve maternal health0 Combat HIV/AIDS, malaria, and other diseases0 Ensure environmental sustainability0 Develop a global partnership for development

Who and Where?

Almost all countries in the world are members of the UN. There are currently 193 countries in the UN.

The headquarters is in New York City.

The International Court of Justice (ICJ) is located in The Hague in the Netherlands.

Membership

0 Membership in the United Nations is open to all other peace-loving states that accept the obligations contained in the present Charter and, in the judgment of the Organization, are able and willing to carry out these obligations.

0 The admission of any such state to membership in the United Nations will be effected by a decision of the General Assembly upon the recommendation of the Security Council. Chapter II, Article 4.

Principal organs of the United Nations 

UN General Assembly— Deliberative assembly of all UN member states —

May resolve non-compulsory recommendations to states or suggestions to the Security Council (UNSC);

Decides on the admission of new members, following proposal by the UNSC;Adopts the budget;

Elects the non-permanent members of the UNSC; all members of ECOSOC; the UN Secretary General (following his/her proposal by the UNSC);

and the fifteen judges of the International Court of Justice (ICJ). Each country has one vote.

Security Council

Responsible for the maintenance of international peace and security;

May adopt compulsory resolutions;

Has fifteen members: five permanent members with veto power and ten elected members.

UN Secretariat— Administrative organ of the UN —

Supports the other UN bodies administratively (for example, in the organization of conferences, the writing of reports and studies and the preparation of the budget);

Its chairperson – the UN Secretary General – is elected by the General Assembly for a five-year mandate and is the UN's foremost representative.

International Court of Justice— Universal court for international law —

Decides disputes between states that recognize its jurisdiction;Issues legal opinions;

Renders judgments by relative majority. Its fifteen judges are elected by the UN General Assembly for nine-year terms.

UN Economic and Social Council

— For global economical and social affairs —

Responsible for co-operation between states as regards economic and social matters;

Co-ordinates co-operation between the UN's numerous specialized agencies;

Has 54 members, elected by the General Assembly to serve staggered three-year mandates.

UN Trusteeship Council— For administering trust territories (currently inactive) —

Was originally designed to manage colonial possessions that were former League of Nations mandates;

Has been inactive since 1994, when Palau, the last trust territory, attained independence.

FundingTop 17 Contributors to the UNITED NATIONS BUDGET

MEMBER STATE CONTRIBUTION % OF BUDGET

UNITED STATES 22.000

JAPAN 10.833

GERMANY 7.141

FRANCE 5.593

UNITED KINGDOM 5.148

CHINA 5.148

ITALY 4.448

CANADA 2.984

SPAIN 2.973

BRAZIL 2.934

RUSSIA 2.438

AUSTRALIA 2.074

SOUTH KOREA 1.994

MEXICO 1.842

NETHERLANDS 1.654

TURKEY 1.328

SWITZERLAND 1.047

United Nations Program United Nations Development Program (UNDP)

1. Democratic Governance,

2. Poverty Reduction

3. Crisis prevention and recovery,

4. Energy and Environment

HIV/AIDS

Office of the United Nations High Commissioner for Refugees (UNHCR)

Headquartered in Geneva, Switzerland, UNHCR protects refugees worldwide and facilitates their return home or resettlement.

UNHCR is working on the ground in over 116 countries, helping 20.8 million persons in areas including Lebanon, Darfur, southern Sudan, Afghanistan, and Iraq.

United Nations Children's Fund (UNICEF)

UNICEF provides long-term humanitarian and development assistance to children and mothers.

Recent UNICEF initiatives have included polio immunization for 5.5 million children in Angola, helping girls enroll and stay in school in 34 African countries, and reintegrating child soldiers in Sierra Leone into civil society.

World Food Program (WFP)

WFP, which aims to eradicate hunger and malnutrition, is the world’s largest humanitarian agency. Every year, the program feeds almost 100 million people in over 80 nations. WFP has delivered aid to Darfur, to Pakistan in the aftermath of the 2005 earthquake, and to southern Asia following the tsunami.

United Nations Drug Control Program (UNDCP)

UNDCP helps Member States fight drugs, crime, and terrorism. Aside from providing laboratory services, this Program helps to improve cross-border cooperation.

United Nations Environment Program (UNEP)

UNEP coordinates the United Nations’ environmental activities.

It develops international environmental conventions, assesses global environmental trends, encourages new civil sector partnerships, and strengthens institutions so they might better protect the environment.

UN Women

The creation of UN Women came about as part of the UN reform agenda, bringing together resources and mandates for greater impact.

It merges and builds on the important work of four previously distinct parts of the UN system, which focused exclusively on gender equality and women’s empowerment.

UN Specialized Agencies

0 The United Nations’ specialized agencies are autonomous organizations working with the United Nations and funded by both voluntary and assessed contributions.

0 These agencies include the:

World Bank

The World Bank focuses on poverty reduction and the

improvement of living standards worldwide by

providing low-interest loans, interest-free credit, and

grants to developing countries for education,

health, infrastructure, and communications, among

other things. The World Bank works in over 192 countries.

Functions of world bank

Functions of world

bank

Loans for education

Reduce poverty

Control emerging conflicts

Funds for biodiversity

project

The World Bank was established in 1944, as the International Bank for Reconstruction and Development.

Recently the "World Bank" name has come to be used for the International Bank for Reconstruction and

Development (IBRD) and the International Development Association (IDA).

When it first began operations to speed post World War II reconstruction, it had 38 members, now it has 192, almost all the

countries in the world. As membership grew and their needs changed, the World Bank expanded and is currently made up of five

different agencies.

How is the World Bank Group Organized?

0The International Bank for Reconstruction and Development provides assistance to middle income countries.

0 IBRD obtains most of its funds through the sales of bonds in international capital markets.

Products and Services (IBRD)

IBRD has three main business lines:

0 Strategy and Coordination Services0 Financial Services0 Knowledge Services

Strategy and Coordination Services

0 Country Partnership Framework (CPF). This new approach aims to make our country-driven model more systematic, evidence-based, selective and focused on the goals of ending extreme poverty and increasing shared prosperity in a sustainable manner.

0 Systematic Country Diagnostic (SCD) will inform each new country partnership. The diagnostic will identify the most important challenges and opportunities at the country level for reaching the two goals. Consultations with a range of stakeholders will inform the SCD process, from diagnostic through completion. The CPF takes the place of the Country Assistance Strategy (CAS) and guides the Bank Group's support to a member country.

What We Do

0 As the largest global development institution focused on the private sector, IFC works closely with businesses in developing countries to help them succeed in ways that promote prosperity for all.

We provide investment, advice, and asset management. Together, our services give us a special advantage in helping the private sector create opportunity—our investment and advice can be tailored to a client’s specific needs, and in ways that add value. Our ability to attract other investors brings additional

benefits, introducing our clients to new sources of capital and better ways of doing business.

Financial Services ( what we do)

0 Financing Small Businesses through the Internet

0 IFC is supporting digital solutions to expand financing for small enterprises and women-owned businesses in China.

Knowledge Services

0 About

1. Poverty Assessments

2. Social and Structural reviews

3. Public Expenditure Reviews

4. Sector Reports

5. Country Economic Memoranda

6. Knowledge Sharing

World Bank Data and Statistics

The World Bank Data Catalog is a rich source of research data for numerous aspects of international development. Highlights and related sources are

listed below but are not exhaustive. 

1. Development Indicators2. Climate Change Data3. Doing Business4. Education Statistics

5. Gender Statistics6. Global Economic Monitor Commodity Price Data7. Global Financial Development Database8. Global Financial Inclusion Database9. Enterprise Surveys  Firm Level Data10. IBRD Statement of Loans - Current11. IBRD Statement of Loans - Historic12. Landmine Contamination and Clearing Database13. Temporary Trade Barriers Database14. World Bank Major Contract Awards15. Worldwide Governance Data

The World Bank, Business and Privatization

The World Bank publishes a substantial amount of information on business and investment climate, trade restrictions, regulatory conditions, and much more.  

1. Doing Business2. Ease of Doing Business Index3. Enterprise Surveys4. Exporter Dynamics5. Investing Across Borders FDI Regulations Database6. Knowledge Indicators Group7. Private Participation Infrastructure Database8. Privatization Database9. Private Participation in Renewable Energy10. Subnational Doing Business

The International Development Association ( IDA ) assists the poorest countries with a per capita income of less than $885--to which it provides interest-free loans, technical assistance and policy advice.

Key Achievements

0 3.5 million teachers are recruited and trained0 597 million children immunized0 123 million people with access to water sources0 117 million with access to health care program0 116,000 km roads build or fixed0 119 million women received pre-natal care.

0The International Finance Corporation (IFC) promotes growth in client countries by financing private sector investments.

The International Centre for Settlement of Investment Disputes provides facilities for the settlement by conciliation or arbitration of investment disputes between foreign investors and their host countries.

Tobacco major Philip Morris sued Uruguay for alleged breaches to the Uruguay-Swiss BIT for requiring cigarette packs to display graphic health

warnings and sued Australia under the Australia-Hong Kong BITS for requiring plain packaging for its cigarettes. The company claims that the

packaging requirements in both countries violate its investment

Example cases:

The Multilateral Investment Guarantee Agency (MIGA) helps encourage foreign investment by providing guarantees to foreign investors against loss caused by non-commercial risks in developing countries, thereby creating investment opportunities in those countries.

Branch of the World Bank charged with providing political risk insurance and dispute mediation for foreign investors.

Lending Operation of World Bank

To maintain the continuing support of its member governments, it’s loans must stipulate economic growth in the less developed counties

where it lends.

The World Bank does not lend in support of military or political objectives, or for the purpose of facilitating exports of any particular industrialized country.

World banks supports the project such sector of agriculture and rural development, industry, power, telecommunications, transportation, education,

urban development, and water supply and sewerage.

Methods of Payment

1. The application must normally be supported by a copy of the suppliers invoice.

2. It must be supported by a copy of the contract or purchase order, a copy of the suppliers in voice and in due course once again by a copy of the bill of lading showing the shipment have been made.

3-4 are used when a supplier request a borrower to open a commercial letter of credit in his favor and the commercial bank in the supplier’s country is unwilling to confirm the credit without security.

Criticism of world bank

President of

world bank is always

from US It is deeply driven to

imperialism

It promotes US or

western interest

Decision is

undemocratic Lack

transparency to

external public

Neo-liberal

What is International Monetary Fund

The IMF works to foster global growth and economic stability. It provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty.

Function of IMF

Function of IMF

Financial assistance

Grand loans

Fixed exchange

rate

Sustain economy growth

NEED OF IMF

The expansion

and balanced growth of

international trade.

They are the promotion of international

monetary cooperation.

The elimination

of restrictions

on the international

flow of capital.

Exchange rate stability.

Membership

The IMF has 188 member countries. It is an independent international organization, which has its own charter, governing

structure, and finances.

Its members are represented through a quota system broadly based on their relative size in the global

economy.

The Funds criteria for membership are that an applicant is a country.

No joint membership, available only to countries individually.

What is a quota and how it is determined?

Subscriptions A member country's quota subscription determines the maximum amount of financial resources the country is obliged to provide to the IMF.

A country must pay its subscription in full upon joining the IMF: up to 25 percent must be paid in the IMF's own currency, called Special Drawing Rights (SDRs) or widely accepted currencies (such as the dollar, the euro, the yen, or pound sterling), while the rest is paid in the member's own currency.

Voting power

The quota largely determines a member's voting power in IMF decisions.

Each IMF member's votes are comprised of basic votes plus one additional vote for each SDR 100,000 of quota.

The number of basic votes attributed to each member is calculated as 5.502 percent of total votes. Accordingly, the United States has 421,965 votes (16.76 percent of the total), and Tuvalu has 759 votes (0.03 percent of the total).

Access to financing

The amount of financing a member country can obtain from the IMF is based on its quota.

For instance, under Stand-By and Extended Arrangements, which are types of loans, a member country can borrow up to 200 percent of its quota annually and 600 percent cumulatively.

SDR allocations ( special drawing rights )

SDRs are used as an international reserve asset. A member's share of general SDR allocations is established in proportion to its quota.

The most recent general allocation of SDRs took place in 2009.

Latest News of IMFThe International Monetary Fund (IMF) has raised its economic growth projections for the Philippines for this year and the next while cutting the global outlook.

The growth forecasts for 2015 and 2016 were revised to 6.6% and 6.4%, respectively, reflecting the boost from lower global oil prices and anticipated pick up in government spending from the low base in 2014.

0 Both figures were higher than the IMF’s previous projections of 6.3% for 2015 and 6.2% for 2016 but below the government’s 7.0% to 8.0% goals.

0 The upward revisions for Philippine economic growth was made parallel to a cut in global output for this year and the next on weaker economic activity in China, Russia, the euro zone, and Japan, as well as in some major oil exporting countries.

PinoyInvestor’s “Local News” section covers important economic and regulatory updates in the Philippines. Know them since these developments

can affect investor sentiment and the stock market!

By Angping Associates and Securities ( Pinoy Investors )

CRITICISM REGARDING IMF

U.S. holds maximum shares.

Does not show interest in Asian countries.Failed to turned countries into free market.Countries got addicted and dependent.No coordination between IMF and world bank.

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified in their parliaments.

The WTO is a rules-based, member-driven organization — all decisions are made by the member governments, and the rules are

the outcome of negotiations among members.

There are a number of ways of looking at the World Trade Organization.

• It is an organization for trade opening. • It is a forum for governments to negotiate trade agreements.• It is a place for them to settle trade disputes. • It operates a system of trade rules. • Essentially, the WTO is a place where member governments try to sort out the

trade problems they face with each other.

The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main function is to ensure that trade flows as

smoothly, predictably and freely as possible.