The market Sri-Lankan includes the four cellar operating company that tend to offer the globally competitive pricing. The lowest cellular telephone with the Millennium Bug which includes the addition US $29 million which is obtained as a soft loan with the Sri Lanka entanglement in the world communication web. The structural on the marketization of Sri-Link which includes advantages and disadvantages:
The argument is for the increased trade volume which is for the market promotion with increased production and more employment opportunities.
Developing countries have increased savings with opportunity borrowing. In Sri-Lanka includes the domestic savings with the 15% with the input output relationship.
The opportunity is for the increased foreign direct investment, where there are reduced risks for the capital mobility and the market signals with private capital with moving into developing countries (Senanayake et al., 2018).
The modern warfare includes the developed countries which includes the elongated research with the disarming on the world community. The analysis is based on the world community with the significant approach on the new economic order.
The creation of the investment funds are through the budgetary deficits with the government deciding to take more foreign debts and then handling the expenditure in the goods and services with resources mobilized through taxes.
The metropolitan centers are for the control with the IMF with the regulating on the financial market. The USA includes the globalization with the situations on the policies employed by the third world country.
The technological monopoly: The technological monopoly includes the power of technology with use begin with monopoly power of technology with limited only to the countries in the center. The third world countries includes the greater difficulty in finding the larger scale capital requirements.
Monopolistic access for the Planet natural resource: The existing global economy includes the competitive systems with the market oriented economy, with the features that includes the rationality of the economy agents. The consumers attempts are for the maximizing the profit with the extraction for the natural resources with the profit maximization. The Sri-Lankan includes the globalization process natural resource deplete at a rapid pace. The natural resources are exploited effortlessly with the exploitation of the natural resources.
Media and Communication: The media and communication involves on decisive factors with the cultural practices with expansion on the world. The western liberal democratic thinking on the socialization of computers with cut-off with the media and communication on the level of inter-dependence between countries in center.
The disadvantages are related to the historical development with the IT development with the handling of the IT standards in the world. With this, there have been changes for the world trade that includes the changes of the faster GDP growth with development that involves the democracy which is about the time and the gain related to the positive and the negative effects. Some of the disadvantages are related to:
The cost labor factors which involves the reduction and the dominance for the developed countries.
Handling the problems related to the environmental standards and then working on free trading which is mainly set in between countries.
Working on the free trading which is for the proper development and the developing countries to handle the gain of benefits that are related to the capital.
The facilitation of the FDi in Sri Lanka includes the innovative online one-stop shop with helping the investors with official approvals. The Sri Lanka is to intent on drumming the FDI for $5 billion by 2020. Hence, the strategic geographic position with high literate workfroce and then ripe for the investment in sectors like the tourism and the logistics and the information technology enabled services. For FDI, the investment is made by the company includes the forms with building on the new facilities, reinvesting profits that earns on the operations or intra-company with the economy with more competitiveness (Gupta, 2018).
Some of the reasons are:
FDI and the investment of domestic are considered to be the heart of the economic growth. FDI could help includes the upper middle income country with 4% in Sri Lanka over the 3 decades with the upper middle income status with standards related to the early generation.
FDI can boost the economic growth with the overtaking aid, remittance and the investment of portfolio. The island fiscal budget is rigid with the 60% of the expenditure that is pre-determined with taking up to the share of burden.
FDI can help in driving the technology exchange and innovation with working on the different new technologies and also the service provision or the production which is considered to be important and innovative as well. The establishing of innovation with the developing countries and transfer production with managerial strategies.
FDI can lead to diversifying and increased exports with the Sri-Lanka with the persistent problems on the trade deficit. The greater FDI includes the enhanced access with producers for global production network and facilitating the development with the new activities and then work on the accelerating of the economic growth.
The new investments can help with government revenue and the reserves of the foreign exchange. Sri Lanka borrowing is high with budgeting spending on the social benefits like the health and education (Savchenko et al., 2016).
The FDI is in Sri Lanka with handling the lowering factors than the countries that are set with the location and access with the focus on the marketing standards. There are lowering of the same than 2% of the GDP which is then compared to the GDP of Malaysia and Vietnam. Hence, there is a need to keep and increased FDI flows, Sri Lanka includes the concerted with efforts to address the gaps with playing the strength. The annual real GDP includes the acceleration to 6% with high investment that is needed. The other way is to compete on the speed and the cost of trade processing with the logistics that are inefficient. Hence, the BMI logistics risk index includes the Internal Revenue Act with improvement of efficiency and transparency of incentives that are applicable to the foreign investment in Sri-Lanka.
The trade theories includes the internal trade with the boundaries of the country with the wholesale trade and the retail trade. This comes with working on the mediator that comes on the manufacturer and retailer. The trade originated includes the human communication with innovation of modern day currency. The economic thinkers comes into existence with the trade and expressing the trade with the different aspects of society.
Applicability to Modern Data International Trade
The classical theory includes the modern theory planning with factor endowment with building the theory with the pattern of production, specialization and trade among the regions. The different factor endowment and the supply of factors includes the theory with the rich in capital which will export the capital intensive goods with labor that will export the goods that is labor intensive. The trade provides the trading countries with the realistic assumptions with the situations that are for the commodities that can be set for different country.
Kravis Theory of Availability
The theory includes the assumptions for the classical theory where technology is same in the trading countries. The labor intensive exports are set with exporting industries paid at a high wage to the laborer’s. The country produces and exports the goods with Kravis propounding on the theory with the country importing on the goods which includes the export to the goods which are available more than domestic needs. Kravis are for the natural resources, technical changes with product differentiations and the government policy. The second factor includes the technical knowledge which is importing countries with Government policies with obstruction which leads to the trade for the negative path. The unavailability of goods which is affected by the lack of natural resources, technical knowledge, and product differentiation and policies of government (Palliyaguruge et al., 2017).
Linder Theory of Volume of Trade
The theory tend to pertain with the volume of trade on the manufacture with national income with the pair for the trading countries. The possible resolution includes the distinction which is made in between the trade exports which can be explained when related to the natural resources endowment, with the manufacturers tend to export the managerial skill and the economies of scale which is considered to be the concern of the volume and the different pairs of the trading partners. The foreign trade is the extension of domestic trade with the existing industries that are equipped with the innovating centers. The understanding is based on the foreign trade which is the only extension of domestic trade with the foreign market which is risky that involves the existing industry that are equipped with innovative centers. The country includes the exports with the commodities that are for exporting the countries and handling the demands for the high quality goods (Walton, 2020).
COVID 19 is the humanitarian crisis on the global scale with the global growth that involves the unprecedented collapse with 13% decline in the global GDP. With this, there is a focus on the costs of the global economy that comes from the support packages that is through the central banks and the fiscal actions. The challenges are for the uncertainty which includes the terms of the scale and the infection pace. There are perspectives for the treatment to properly manage the symptoms with allowing the health services and handling the different with the trade flowing on ensuring the essential products. It includes the trade flowing the cooperation and trust. The monitoring is based on the handling of the globally supply chains which is for the essentials. Hence, there are cancellation of the passenger flights which is linked to the travel bans with limiting the availability of the air cargo. The focus is on the medical supplies with tackling COVID 19 that are including the surgical masks with the crisis where there are Chinese demands that are set for handling the increased production per day to exporting masks to the other countries (Borkakoti, 2017).
There have been confidence in the global markets and cooperation which involves the avoidance of the ongoing trade tensions. Here, the firms includes the collapse in the demands with the uncertainty and severity of COVID 19 which is associated to the non-tariff barriers with handling the increased import tax contribution to the government revenue. It includes the failure to facilitate the international trade which is in regard to the position of tax. The non-tariff barriers are for the restriction of the imports with the imposition of the tariff. Hence, there are restrictions of the free trade which includes the production subsidies and the lack of the transparency in the government requirements. The Sri Lanka government regulations includes the fruit import from the non-growing area into the Sri Lanka which is prohibited. Hence, the examples are related to the import of the fruits and then handling the subsidy of the fertilizer with the ricer farmers that tend to make the production cost of rice. The succeeding production is at the lower costs with enabling them in the rice market. The importation is restricted through the import license which is only for the selected varieties that are set for encouraging the private sector with leading role in the economic progress. It also includes the removal of the import of the quota system with the evaluation in the trade facilitation contexts that includes the minimal improvement or the negative improvement for handling the removal of the trade barriers. Sri Lanka is from the civil wars with the major attention on developing the economy of country with facilitating the trading that is for the high import tariffs with positive impact on the free trade. There is a need to work on the improvement with efficiency of the customs clearance process and quality of trade and transport.
The global integration and the local responsiveness includes the business with the objectives to reduce costs with creating economics of scale. There are business factors with highly locally responsiveness which is set for adapting to the products and services which are for the specific local needs. The strategies are related to the international operating business which includes:
Multidomestic: This is for the low integration and high responsiveness. Here, the companies aim to meet the needs and the requirements for the local market. This is through customizing and tailoring the products and services. The little pressure is for the global integration with multidomestic firms that have a decentralized and loosely coupled structured where there are subsidiaries that are operating autonomously. There are great examples for the multidomestic company which is Nestle that tend to make use of the unique marketing and sales approach for the markets in which it tends to operate (Dietzenbacher et al., 2020).
Global: The high integration and low responsiveness includes the offering of the standardized product with the offering and focusing on maximized goal efficiencies. This is for the ordering to reduce the costs where the global companies are centralized and the subsidiaries are maintained at the dependent factor on the headquarters. The role is to implement the parent company decisions with the pipelines for the products and the strategies. The model is the hub and spoke model where pharmaceutical like Pfizer is considered to be the global company. The strategy is considered important where Microsoft tend to offer the same software programs with adjustments to match to the local languages.
Transnational: This is for the high integration and high responsiveness where Unilever is for the global and the multidomestic firm. The aim is to maximize the local responsiveness with gaining benefits from the global integration. There are impossible factors which are perfectly doable when one tends to take the whole value chain into consideration. The translational companies tend to create the economies of scale with the upstream in the value chain that are found to be more flexible and locally adaptive in the downstream activities. They are for transnational company which is integrated and interdependent network all over the world. The subsidiaries are for Unilever which is set for the efficient knowledge and the exchange of expertise which is in between the subsidiaries. Hence, the company is able to meet the strategic objectives effectively (Irwin, 2020).
International: The low integration and low responsive includes the factors with the attributes to the name. The need is for the local adaptation with the global integration that involves the majority of the value chain activities which are for the strategy that is referred to the exporting strategy. The products are produced in the company home country and then sending to customers over the world. The subsidiaries is for the functioning which is in the case that has more local channels set through which the products are being sold for the end-consumer. There are larger wine producers from the countries like France and Italy that are considered to be the greater examples of the international companies.
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