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

Dear Readers, We hope you enjoyed the last issue of Vishvavyapar. Yet another new issue of Vishvavyapar is out with new talks of the global family. The esteemed Professor of economics, Mr. S.K.Singh, has provided us with some insights of this much talked about issue through his article Downgrade of US Debt: an Analysis. Corporate bites in this issue are provided by Mr.Kinjal Pandey, General Manager at A.P Moller-Maerskline Group. This edition comes with a new column of interview summaries of our senoir batch to give an isight of interviews. Lastly you would also not want to miss the crossword puzzle of the month do solve it.

In this issue
Downgrade of US Debt: An analysis Doing international business: ethically Interview Experience FDI in retail in India IB News Crossword

Enjoy Reading!

(Mail your views with name and topic to ibcell.dse@mibdu.org)

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Vision
The newsletter is envisaged as an attempt to form a link with the latest happenings in the dynamic world of international business- as a platform for the authors to bring across to the readers their perspectives on what moves the wheels of the corporate world in the international arena.

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Corporate Ar ticle

Doing International Business: ethically

Doing business in the global marketplace requires exhibiting overseas. Participating in international shows helps establish your companys presence as a global player, and is perhaps the single most valuable tool in forging new, valuable relationships with your foreign counterparts. But there is an element of risk in international exhibiting. While the United States enjoys a relatively high level of political stability, the same is not true around the world. Riots happen, terrorism happens, strikes happen, even natural disasters happen. Obviously, these events cannot be predicted, but there are certainly things you can do to minimize your companys exposure to risk. It is not realistic to simply avoid any location that might be potentially dangerous. One must weigh the perceived risk against the possible rewards and make a reasoned judgment call. To do that, use the MAP formula that can be stated as following: M: Maintain Awareness: Keep abreast of current events in your destination country. The media can be your ally in this task, although it is good to remember that the camera crews dont arrive until there is something to film. A crisis may have been brewing for a while before something sets it off and you want to be aware of whats brewing. Pay attention to local media. Do not rely solely on American television or print media to give you a perspective on whats happening. Youll get a clearer, more authentic version of events from either the country itself or that of nearby neighbours. Getting accurate information out of some countries is notoriously difficult former Soviet Bloc countries, China, Korea, and some African dictatorships for example so youll be forced to be more proactive in your research.

Additionally, the State Department regularly issues reports updating conditions in various locations for Americans abroad. They will also, when conditions merit, urge travellers to leave or avoid a particular destination. Make sure you check this information regularly, and take any warnings issued by the Government.

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A: Ally Yourself: Partner with local vendors, suppliers, and customers. These people will be your eyes and ears on the ground in your destination country. After all, they live there every day, and will have valuable firsthand knowledge of what is going on. This can be more valuable than any information gleaned from news reports, as local residents will be able to place things in perspective. Theyll know if the rumblings between Faction A and Faction B are elevated or are just at a regular level but in the spotlight. While it is important to view media sceptically, as they have a tendency toward sensationalism, it is also important not to rely too much on the advice of any one foreign ally. Some cultures are structured in such a way that people will go to elaborate lengths to avoid saying no or having to deliver unpleasant news. This can be misleading, and give you the impression that things are perhaps better than they really are or seem to be. One last caveat: The majority of your allies have a financial stake in your show participation. Remember that they will be making judgments and giving advice with one eye on their own interests. Additionally they may assess risk differently. People who live with the daily threat of car bombs and drive-by shootings learn to take these things in stride, while a visitor may find themselves terrified. That is why it is important to combine your allies reports with objective media information. Have your allies brief you on the area before you arrive. Where are the safe areas, and what sections of town are to be avoided? Are there local customs that you need to know? There can be regional differences within a country metropolitan areas may be far more liberal than the rural countryside. You want your people to fit in as much as possible. Being noticed on the show floor is a good thing being noticed as a potential target by an angry crowd outside, not so good situation to be in at all.

P: Plan: Have a worst-case scenario plan in place. Where will you go if the convention centre is attacked? It is prudent to have an offsite go-to spot designated, even if youll never use it. Airports, municipal buildings, embassies or an unaffiliated hotel are all good choices for this task. Decide on a meeting spot to regroup if your party gets separated during chaotic events. Each member of your team should have their own travel documents with them at all times. Make sure everyone has everyone elses contact information. A phone list may seem like one more bit of paper to manage, but it could come in invaluable if one or more individuals get lost. Have a code of behaviour in place for your booth staff. Now, more than ever, they are acting as your companys ambassadors. People are often highly aware of the strangers in their midst who they are, and how they conduct themselves. Its tempting to kick up your heels and have a wild time, especially in a strange, exotic locale but acting like the Ugly American can be bad for business. Worse, wild times can have fatal results. Visitors who are obviously out of their element and intoxicated

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and intoxicated are easy pickings for the criminal element that lurks in every city. Using the MAP formula doesnt ensure that nothing bad will ever happen. However, it will help your team be prepared for what might happen during your next overseas exhibit. For small and medium sized enterprises in the business or professional services industry, expanding to a foreign market can be a daunting proposition. Many such companies limit their growth by not taking the chance, while others proceed with insufficient preparation and then wonder why they didnt succeed. The following is a brief outline of the key steps that should be undertaken prior to launching into an international venture, and some of the issues to consider. Article by: Kinjal Pande General Manager , A.P. Moller - Maerskline Group

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Wo r d s f r o m Fa c u l t y

Downgrade of US Debt: An Analysis

(Article Continued from December issue)
Shrawan Kumar Singh, Professor of Economics and Director, School of Social Sciences, IGNOU, (Retd.)

Impact on India:
How will this rating downgrade pan out in India? In this context, three questions are important: First, how severe is the US debt downgrade in general and what are the implications for Indias own debt? Second, what has been the impact of this downgrade on money, forex, government securities, and equity and bond markets. And third, what is the likely impact on Indias growth prospects and the implication for policy perspectives in the current context? A related question is: how serious is the downgrading for Indias own position? India is rated seven notices below AA, at BBB-, with a stable outlook by S&P. This reflects the lowest investment grade ratings for India, only one notch above the junk category. Goldman Sachs recently upgraded Indian equities to market weight from underweight. Even with its high debt and deficit levels, the country is in a relatively comfortable position compared to the US and other advanced countries. Even as the countries in Europe seem to be facing credit rating cuts, India is rightly pressing rating agencies to secure an upgrade. The finance ministry has asked all the financial sector regulators to look at measures to improve credit rating.

Except for the foreign exchange market and the equity markets, the impact of the US debt downgrade was muted on all fixed income markets including the money market, with the exception of the corporate bond market which witnessed some pressure on bond spreads. The nexus between the stock market indices, foreign institutional investment (FII) flows and the rupee exchange rate became evident during this period. Significant FII outflows were noticed post-US downgrade, starting 5 August 2011.

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It is clear that except for the capital market and the foreign exchange market, the impact of the US debt downgrade was muted in all other fixed income markets. Hence, apart from the transmission effect of the policy rate hikes, any fear of additional impact of the debt downgrade is not well-founded. Any liquidity concerns in either the money or forex a market as fallout of the US debt downgrade has been quenched in time by the RBIs assurance that adequate rupee and forex liquidity will be sustained to prevent any excessive volatility in interest rates or in the rupee exchange rate. India, by virtue of its modest openness and its track record of prudential policies, may not face any serious disruption of a lasting nature. There could be some hiccups, like the hardening of government securities and bond yields, combined with some stock market correction, but the near and medium-term outlook for growth as also for financial stability should remain intact. Given the interest rate differential, the current resilience of the Indian economy and medium-term growth prospects, the country is bound to remain one of the best destinations for foreign investment. Hence, it is expected that the inward capital flow will regain its buoyancy in the coming months. The current growth momentum is intact. At best, there could be only a slight moderation in growth, but definitely not a slowdown. Fiscal position is another soft spot in the economy. Prospects of increase in subsidy payments, there is the risk that this years budget may put additional demand pressures stoking inflation. The domestic currency may harden in case of a pronounced slowdown in developed economies, but the slowdown in the global growth is also expected to bring commodity prices to more affordable levels. This trend is amply reflected in moderating crude oil and metal prices. The other side of this story is that growth may not suffer if public sector demand increases. Given the persistent demand pressures from the private, public and export sectors, and the downside risks to sustenance of capital flows, the appropriate policy stance for the central bank would be to persevere with its antiinflationary stance and continue tightening rates if needed. It is commendable that both the government and the RBI have chosen this path so far (Economic and Political Weekly, August 20, 2011). Near-term confidence notwithstanding, the Indian IT industry is somewhat guarded on the long-term impact. ``The lag effect will show up some two quarters down the line''. But the retail Indian BPO could be hurt straightaway as the impact of the rating downgrade manifests in higher interest rate on home mortgage, declining travel, drop in spending on non-essentials and the like in the U.S.

The accommodative policy of the US and other advanced economies to prevent recessionary trends will contribute to further augmentation of global liquidity seeking better returns.

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The central bank may continue to follow the policy of leaving the rupee alone. The RBI does not have any target rate or band. Intervention is resorted to only when the market is volatile. The appreciation of the rupee helps in bringing down the cost of imports of raw materials including oil. Export industries dependent on imports have benefited greatly by the decline in prices. Export of gold and diamond-studded jewellery is a good example since nearly 80-90 of the raw material is imported. In all the discussions on exchange rates one rarely comes across such concepts as income and price elasticitys of imports and exports and Marshall-Lerner Conditions, etc. Whether Indian exports will be out priced in international markets depends on the relative strength or weakness of other currencies. One reason for the good performance of Indian exports despite the rupee appreciation is the fact that the currencies of some competing countries have appreciated even more, providing a net advantage to the rupee. Any appreciation of the rupee should be treated as a correction for its undervaluation in relation to the dollar. Although the US share in our exports is about 16 per cent, nearly two-thirds of the total is invoiced in dollars. The real problem will arise in case there is a double dip recession in US and Europe. The extent of intervention can be only marginal since the total volume of forex transactions either in India or in the world markets is huge. It is possible that a few industries may suffer due to rupee appreciation. The remedy is in taking fiscal measures to provide relief as was done during the recent crisis. Information technology is likely to be one of the sectors that may be adversely affected. There is a difference between the crisis of 2008 and the event of 2011. The initial position in 2011 for India is different from [that in] 2008.

The rating downgrade will also have definite consequences for trade. The immediate worry is that how will the dollar move. Any depreciation in dollar is going to hurt Indian exports. Any fall in dollar will make Indian exports uncompetitive. Export-driven industries such as garments, handicrafts, leather, gems and jewellery could come under severe stress because of changes in dollarrupee parity likely in the wake of rating downgrade. There is a positive aspect to it, however. The imports (especially the oil bill) could turn cheaper should dollar depreciate. Though the macro numbers in India are still encouraging, the deceleration concerns have already started assuming vocal expression these days. The latest series of actions on the U.S. front are bound to force the monetary and fiscal managers in India to re-adjust their policy prescriptions in a dynamic global environment, which is set for a major metamorphosis in the wake of Standard & Poor's decision to push America out of the risk-free borrowers' list.

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Our fiscal position is weaker both in quantity and quality. The external sector position is weaker both in terms of stock of assets and liabilities, be it quantity-wise or quality-wise, and flows in terms of current account deficits. Domestically, both public and private investments seem to be somewhat subdued, while supply inelasticitys have set in. Above all, in 2008, we entered the crisis with confidence in terms of both growth and inflation, while the sentiment today is less confident than before. The redeeming feature, perhaps, is that the events in 2011 may not indicate a serious crisis, but would indicate uncertainties, volatilities, divergent growth paths, divergent policies, etc. The challenges for policymakers are different, way forward (Y.V. Reddy, The Hindu, August 18, 2011). Indian economy was largely insulated from the global financial turmoil that had resulted from downgrading of US credit rating and the sovereign debt crisis in the Euro zone. First challenge for India is to start thinking in terms of a nimble strategy, not just cautious policy, to handle a divergent world. There is a divergence between the real sector and the financial sector; there is a divergence between policy and the markets. First is to have a strategy, second is to be nimble. The next question is how are the other emerging markets going to do is an issue. Most other Emerging Market Economies (EMEs), particularly in Asia, are stronger than India. Given the robustness of US bonds, India need not worry overtly about the downgrade. As it happens, valuations are now attractive for investors. And so long as the Indian economy grows and if policy becomes more assertive, India will remain a destination for both portfolio and direct investments in a world with shrinking options, beating back any ill-winds from S&P-type ratings. The global event is a matter of concern, but not a matter of alarm, because the long-run story remains more or less intact. The Indian political class must realise the dangers of partisanship sans concern for the collective good. India, therefore, would do well to get its domestic political house in order and move forward on the policy front. The government must now summon the requisite initiative. ********

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Interview Experience

Udit Gupta Master of International Business Delhi University

The following is a short summary of the ICICI bank interview of Udit Gupta.

FE: What do you think these NGOs get their funding from? Me: Corporate, donations, sponsor events etc.

I was invited in the room where the panel consisted of two panellists, one was the HR, and the other was the Functional Expert (FE). HR: So Udit, tell us about yourself. Me: I mentioned the normal rattofied stuff: Cricket, Travelling, Chinese, and Social Work. HR: Why did you leave cricket if you played at the University level. Me: I had a really nasty injury in which I broke my nose, so I told them about it, and how I am really scared to even hold the bat now while facing the ball after that accident. I made sure I was very candid and did not try to hide my weakness that I gave up on something in which I was good at. FE: You did your internship in Bank of Tokyo. Tell us about that Me: I told them about it. Pretty standard stuff. FE: So you love travelling, ehh? Your CV shows you even went to Sikkim for one month for some internship in an NGO. Me: Told them about my internship, my work, and the difficulties I faced there, the new culture, the new people, living amongst tribals etc.

HR: Tell us about your family. Me: Told them the exact thing. FE: You have so many things in your resume. Tell us about your daily schedule. Me: Sir, I wake up at 5:00 for jogging (I mentioned in my CV that I do long distance running). I come back at 6:00. I leave my home at 7:00 for my Chinese classes. I attend my class from 8:00 to 10:00. I come to the college and attend classes which generally finish by 3:30. I stay back till 6:00 for the Placement committee work and leave for home after that. HR: Any location issues? Me: No. FE: Any questions from us. Me: I asked them about their office in Shanghai, and since I am interested to work in that Geography, would I be able to get a chance to handle ICICI's operation there? FE: Its really small. Only two people are handling it so most probably no. But maybe Singapore and Malaysia, after a few years only, though. Me: Thanks Sir.

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Dr. Kapil Goswami Master of International Business Delhi University

PLACEMENT.guys being honest to oneself, mind my words, it is one that thing for which we are in the campus. I was very clear from the beginning about the sector I want to pursue my career in, it was the IB sector. I worked on my skill set required to work in this sector especially in ITPD & SCM. And finally that moment came, 26th Dec2011 was the D-day when STC was scheduled to arrive. It was a two day process, first day was for GD and the next was for interview. GDs were scheduled in small groups of seven students each, mine was the last GD and I must concur, it was not at all a typical fishmarket like GD. People were very well behaved and we actually discussed the case rather than tearing each other apart. At the end of the GD the moderators specifically pointed out me and asked the question- I have a question for you..You are a Doctor? (My answer- Yes sir)If we select you in STC will you continue your clinical practice? (I replied that how being in Fortis I got interested in managerial aspect of corporate Hospitals and why have I fit in the STC), a terse replied came from one of the moderator who was an IIM-L alumnus.You have not answered the Question, will you practice or not?.....I replied , No sir. Chief moderator wrote something on a paper and asked us to

leave. After 30-40 minutes result came out and I was shortlisted. 27th December2011, 11:30 am. We welcomed seven people from STC of whom four were directors from different verticals and three were GMs. I should have felt intimidated but strangely I was very calm and had perfect control over my breath. My number for interview was seventh; I had a cup of tea at JP and started looking my notes for finer details. Then came the call of Ramteke..next are you Kapil! I knocked the door and asked for the permission to come in, they replied.oh yes yes please come.then I asked to sitthey again replied in affirmation. Q1. Hmmmso you are Dr. Goswami? Ans. Yes sir. Q2. Doctor.then MBA and now a PSU? Ans. I was waiting for this question, the moment it bombarded on me, I felt gotcha..!!!!...I explained them the whole supply chain of the question with specific emphasis on my vision of working in STC. (People must take their discretion in finding out their purpose of joining a company like STC according to respective profile and experience).

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Q3. OkDr. Goswami .you have worked with Tata Motors as summer intern; tell us about the problem Tata Motors is facing in case of Nano? Ans. I gave the relevant answer. Q4.Device a market strategy for it? Ans. I gave the relevant answer. After 3-4 such questions, question started coming from another corner Q5. Do a market segmentation for Medical appliance manufacturing company, which is in export of such items. Ans. I expected these kind of questions and really want to thank RTL and its Journals on Marketing for my fine preparation of these questions. Q6. Which are the Hospitals involved in telemedicine in India? Ans. I never expected such medical jargons from themalthough I gave the answer but I knew what is waiting for me when they will start questioning from their own field i.e. IB. Question again changed the position and started coming from a different direction. Q7. What are regional trade blocks? Ans. I answered with lots of examples. Q8. What is the trade-off between RTA & WTO? Q9. Why WTO came into existence and how is it different from GATT? Q10. Do you believe that WTO has achieved its objectives (this question was germinated because my answer to previous question). Q11. Which round of talks is going on in WTO and why talks are not concluding? Ans. My advice to aspirants is that they should focus on the welfare of India, rather than giving a balance view on such policy questions, as I discussed AoA and Subsidy issue, Non Tariff barriers etc. but unfortunately pointed out the concern of developed nations also viz-a-viz to India. Q12. How do countries solve their issues in WTO? Ans. I explained them DSB, countervailing duties and antidumping duties etc. before my answer concluded another question came. Q13. What exactly is the difference between countervailing and antidumping duties? Ans. My advice to aspirants is to take such Lolly-pop questions with open hands and explain them in detail.

Questions again changed the direction

Q14. Does anything strike in your mind with alphabets ABC w.r.t analysis of an organization? Ans. I enumerated all the models that are in abbreviated form like SWOT, BCG matrix, Porters five force model etc. but in no vain then they gave a clue that something related to inventory management and I explained them activity based costing (ABC). Q15. Which all subjects have you studied so far? Ans. This is again a very expected question and key to answer this is to lead the interviewer towards your subject of strength, in my case it was ITPD.

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Q 16.How an Importer opens an LC? Q17. Who are primary, secondary and tertiary parties to LC? Ans. I could answer primary and secondary comfortably but had no clue about tertiary. They gave a clue although after I surrendered. Q18. Who can countersign the documents involved in international trade? Ans. I again explained them the whole flow of documents but they laughed and said no this is not the answer. This was third time I was not giving a proper answer, I asked them to give me a few seconds to recollect my thought process and finally answer that it is CHA who can verify the documents on behalf of exporter or importer but doesnt have signing authority. These were my last words of that interview and even today I dont know whether my last answer was correct or not (Whole interview last for around 35-40 min). Five more students went for interview after me and after around three hours came the result that I am an Assistant Manager with STC along with five other MIBians.

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Student Article

FDI in retail in India

FDI in retail has always been an issue of concern and towards subjectivity from the various sections of the industry. From governments approval to oppositions intervention let us try to analyze the scenarios and its implications. FDI in Retail a myth or a mystery..? An analysis conducted by researchers from Michigan State University and the International Food Policy Research Institute on developments in Asia from 2001 to 2009 observed that while domestic conglomerates had played a role in the rapid growth of organized retail in China, Indonesia, Malaysia and Thailand, the presence of foreign firms had grown substantially. Moreover, evidence from developed countries shows that such growth is followed by a process of consolidation in which a few global retail chains tend to be the winners. India: A Lucrative destination Why FDI in retail in India becomes a lucrative destination for the Foreign Retailing giants is that their Foreign sales have been a major contributing source of revenue for them, amounting in 2007 to as much as 74 per cent in the case of a hold of the Netherlands, 52 per cent for Carrefour of France, 53 per cent for Metro of Germany, 22 per cent for Tesco of United Kingdom and 20 per cent for WalMart of the United States. Wal-Marts 20 per cent too has to be seen in context: with $379 billion of revenues in 2007, it stood way ahead of Carrefour, which came in second with $123 billion in the global league table for revenues. Concerns with FDI in retail It is of course true that agriculture is not a homogenous sector, with farmers of different types and sizes engaged in production. The larger farmers with accumulated surpluses or easier access to official credit may benefit from the transformation in retail. What it does is that it raises selective exposure of Microfinance as a nonbanking financial credit to Farmers. It is the experience of farmers such as these that are often reported when the case is made out that farmers do favour FDI-led large retail. But they are by no means the majority, and not all of them are likely to experience an improvement in their lives once the transformation occurs. The farmers would tend to gain and benefit as a whole but it would be a more skewed growth distribution.

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Moreover, since global chains are allowed to and are equipped to source supplies from anywhere in the world, these large farmers, just as the smaller farmers, would be subject to competition from the cheapest global sources. They could be shut off from access to consumers unless they accept a significant reduction in prices. Adverse effects on employment and earnings are, therefore, a real possibility. The second concern is that even when farmers' earnings are under pressure, consumers may not benefit from the promised reduction in prices resulting from cost economies and the benefits of scale accruing to large intermediaries. Lower prices for consumers may be the initial fallout when existing intermediaries are being competed out to provide space for the large retailers. But once the retail trade is concentrated in a few firms, retail margins themselves could rise, with implications for prices paid by the consumer, especially in years when domestic supply falls short. 225 persons. In 2010, Wal-Mart sold $405 billion amount of goods through its 9800 odd outlets 5located across 28 countries, employing around 2.1 million (21 lakh) persons. This implies that one Wal-Mart supermarket can displace over 1300 Indian small retail stores and thereby render around 3900 persons jobless. The employment created against this in that supermarket will be 214 (or maximum 225, which is the average in the US). Clearly, there will be severe job losses if giant MNC supermarkets are allowed entry into the Indian market According to the National Sample Survey Organization's survey of employment and unemployment in 2009-10, the service sector category that includes the wholesale and retail trade (besides the much smaller segment of repair works for motor vehicles, motorcycles and personal and household goods) provided jobs for 44 million in the total workforce of 459 million. It is no doubt true that the impact of foreign-invested retail would be restricted to the urban areas since its entry as of now is permitted only in cities with a population of more than one million. But this is where the employment in trade would be the highest. As many as 26 million workers of the 44 million employed in the service sector are located in urban areas. Many of these workers find themselves in the services sector (especially in the retail trade) because of inadequate employment opportunities in agriculture and manufacturing. Out of the 71 million jobs in services in the urban areas, around 36 per cent are in the retail and wholesale trade and repair services. In sum, from an employment point of view, this is a sector that is central to livelihoods, however precarious some of those jobs may be. As an employer of last resort, it serves as a poor substitute for the missing social security programme. Article by-Shonik bhasin (MIB- I year)

Employment Embroil Wal-Mart Case The average size of a Wal-Mart supermarket in the US is 108000 sq.ft employing around

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International business-NEWS

1. Iran warns Gulf countries not to replace its

oil: Mohammad Ali Khatibi

2. Honda Motors may spend $650 million to restore flood-hit Thai plant

TEHRAN: Iran warned its Arab neighbours on Sunday not to raise crude output to replace Iranian oil in the event of an embargo by the European Union; Tehran's OPEC Governor Mohammad Ali Khatibi was quoted as saying. "The consequences of this issue are unpredictable. Therefore, our Arab neighbour countries should not cooperate with these adventurers and should adopt wise policies,. 3. .China knocks US sanctions on state-run firm over Iran

TOKYO: Honda Motor Co will completely overhaul its flood-hit factory in Thailand in a project that could cost more than 50 billion yen ($650 million), the Nikkei business daily reported on Sunday. Thailand's worst floods in half a century late last year hit Honda the hardest among Japanese automakers, with its 240,000cars-a-year plant in the Ayutthaya Province in central Thailand submerged under water.

SHANGHAI: China has criticised the United States for imposing sanctions on a state-run oil firm for exporting petroleum products to Iran, saying the move was "without reason". Washington on Thursday slapped sanctions on China's Zhuhai Zhenrong Co., barring it from doing business in the United States, saying it brokered delivery of more than $500 million worth of gasoline to Iran from July 2010-January 2011.

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4.Japan frets over EU downgrades 6.JPMorgan could lose $5 bn from PIIGS exposure: Report

TOKYO: Japanese Finance Minister Jun Azumi on Sunday expressed worries over his nation's own sovereign debt rating after Standard and Poor's downgraded nine debt-laden EU countries, including France. "Unless Japan shows that we are swiftly securing stable financial conditions and rebuilding fiscal policies... it will be us next time," Azumi told reporters. 5.France rating could go lower, but no euro zone break up: S&P

MILAN: JPMorgan Chase & Co could lose up to $5 billion from its exposure to Portugal, Ireland, Italy, Greece and Spain, Chief Executive Jamie Dimon said in an interview with Class CNBC, carried in Italian newspaper Milano Finanza on Saturday. Dimon said the bank was exposed to the five countries (PIIGS) to the tune of around $15 billion 7.Apple reveals list of global suppliers in supply chain audit as Tim Cook ushers in an era of greater transparency

BRUSSELS: France risks another downgrade of its sovereign credit rating if its public debt and budget deficit deteriorate further, Standard & Poor's said on Saturday, a day after it cut the country's top-notch AAA rating by one notch to AA+. "The deficits could increase from the relatively high levels where they are already and reach certain thresholds in the general government debt and deficit ratios, which might lead to another lowering of the rating," S&P credit analyst Moritz Kraemer told a conference call.

SAN FRANCISCO: Apple revealed its once closely guarded list of global suppliers on Friday, taking a dramatic and unprecedented step in response to harsh criticism that it was turning a blind eye to dismal working conditions at partner factories.

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8.China forecasts 10% growth in foreign trade: Xinhua China is predicting sharply slower foreign trade growth of about 10 percent year-onyear in 2012 as officials forecast "grim" export prospects, the official Xinhua news agency said Saturday. The forecast growth for the year ahead by China's top financial planning agency is far slower than the 22.5 percent growth achieved in 2011 when the nation's foreign trade hit $3.64 trillion, Xinhua said, citing customs data.

Compiled by

Yash Vardan Singh Master of International Business Batch -2012-2013

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CROSSWORD

Left to Right:
4. A right to use another person's property. 5. When a business is being shortsighted regarding the needs of its customers, only focusing on its products or short range goals and missing marketing opportunities. 6. Bond issued on the Japanese market in currencies other than yen. 8. A statement signed by a person authorized to take oaths certifying to the authenticity of a document or affidavit.

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11. The point at which a developing country's eligibility for Generalized System of Preferences (GSP) is terminated for the X`reason of sufficient economic progression. 12. The charge made for hauling freight via carts, drays or trucks. 14. Materials placed around cargo to prevent shifting or damage while in transit. 15. Fixed margin within which exchange rates are allowed to fluctuate. 16. A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.

Up to Down:
1. The charges paid by a ship entering or remaining in certain ports. 2. The arranging and packing of cargo in a vessel for shipment. 3. A certificate issued by the agency of a national government indicating that an export shipment has been inspected and is free from harmful pests and plant diseases. This is called. Inspections. 7. Result of a transaction that increases earning per common share. This is..effect. 9. A structure built for the purpose of mooring a vessel; also called a pier. 10. A derogatory term for someone who opposes or disapproves of new technology and/or new methods of working, often because the changes threaten jobs. 11. A controlled temperature shipping container. 13. In international transportation, a charge for the failure to remove cargo from a terminal within the allowed free time. Also, a charge for failure to load or unload a ship within the allowed period

All entries should be mailed at ibcell.dse@mibdu.org by 31th January, 2012 23:59 hrs One lucky winner will receive cash prize of Rs. 500/-

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