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For January, 2011

Economic theories in International business

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ECONOMIC  (OR) INTERNATIONAL TRADE THEORIES IN INTERNATIONAL BUSINESS

Trade theory mainly focuses on the following questions:

-          What products to import and export?

-          How much to trade?

-          With whom to trade?

There are various theories for international business. These are,

01.  Mercantilism

According to mercantilist theory, countries should export more than they import and if successful, would receive the value of their trade surpluses in the form of gold from the country.

Balance of trade = Total Export of goods and services – Total import of goods and services

02.  Neo Mercantilism

Recently, the term neo-mercantilism has been used to describe the approach of countries that apparently try to run favourable balances of trade in an attempt to achieve some social or political objectives.

03.  Absolute advantage

It means “A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it”.

04.  Theory of country size

The theory of country size holds that countries with large land areas are more adopt to have varied climates and natural resources, and therefore they generally are more nearly self-sufficient than are smaller countries.

05.  Comparative advantage

It makes sense for a country to specialize in the production of these goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries, even, if this means buying goods from other countries that it could produce more efficiently itself.

06.  Factor-Proportions theory

According to the factor proportions theory, factors in relative abundance are cheaper than factors in relative scarcity.

Factors are:

Land – Labour relationship Labour – Capital relationship Technological complexities

07.   Product Life Cycle theory (PLC):

According to PLC theory, the production location for many products moves from one country to another depending on the stage in the product’s life cycle.

It consists,

Introduction Growth Maturity Decline

08.  Competitive advantage:

This theory is also known as Portor’s diamond. It consists 4 broad attributes,

Firm strategy, structure and rivalry Factor endowments Demand conditions Related and supporting industries

09.  Country similarity theory:

The theory that a producer, having developed a new product in response to observed market conditions in the home market, will turn to markets that are most similar to these at home.

It is based on the distance among countries, competitive capabilities, cultural similarity, and relations between countries.

10.  New trade theory:

New trade theory argues that if the output required to realize significant scale economies represents a substantial proportion of total world demand for the product, the world market may be able to support only a limited number of firms based in a limited number of countries producing the product.

What is Work Appropriate Clothing? Shedding Light on the “Business Casual” Work Environment

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Sounds like common sense to some, but many of us twenty somethings don’t know what type of clothing is work appropriate. One thing that our parents didn’t focus on was teaching the millennial generation how to dress for work. For instance, my first professional interview back in 2005 was for a part time office position. I went to Charlotte Russe and purchased a $25 capri pant grey suit set, a low-cut party top, chandelier earrings and a pair of strappy sandals. I set out to my interview with my face full of makeup looking very cute, but far from conservative. I walked in to meet my interviewer, watched her look me up and down and sat down for a 5 minute interview from which I received no call back. I didn’t figure out that there was a problem until a year later when I sat down with the career services office at my college to learn interview tips. Now that I’ve learned the err in my ways I’d like to take the time to teach other women my age what they could be doing to miss out on job opportunities.

How to dress for an interview: Unless you have specific instructions on how to dress for this particular company you should always dress in a business suit just to be safe. Wear a pantsuit or skirt with jacket. If the mood is more dress-casual you can remove the jacket during the interview to match the interviewer’s dress. Make sure that you wear a button down shirt or nice sweater underneath your jacket so that if you take it off your outfit is still appropriate. Always keep everything covered! No shoulders or cleavage revealed. Also, stick with the traditional skirt or pants. Until you know if capris are accepted by the office executives don’t wear them. Capris are still on the iffy list for now. For your accessories try to stick with either no jewelry or minimal jewelry. This includes post earrings (no chandeliers or large hoops), necklaces with small pendants, and stick with a 2 ring maximum. Wear your hair in a soft, professional style without much hairspray. Stay away from styles that are high or overly attention grabbing. You want your talents and personality to get the attention, not your hair.

After you get the job: On your first week of the job you want to stick with a similar look to what you interviewed in until you get a good idea of what is acceptable or not. If they say business casual stick with slacks, with button downs or sweaters. Watch around the office at the general appearance of the crowd and you can eventually start mimicking their style of dress. It is generally appropriate to ask your supervisors about specific articles of clothing such as wearing capris or strappy sandals. Cleavage is never acceptable in an office. Stay away from low-cut blouses and anything that you would feel comfortable wearing to a party. Also make sure that any skirts you wear to work are almost touching the knee. Anything too high above the knee is inappropriate. 1 inch above the knee is best. Large earrings are only appropriate if you see your bosses wearing them. Otherwise, stick with small earrings that aren’t too flashy.

Attitude: Your attitude is one of the biggest things that employers notice about you. If you are a hard worker with an excellent attitude and take every opportunity given to you, they will be less likely to critique what you are wearing and more likely to accept you for who you are. If you’re not doing your job or showing a negative attitude you can be sure that they will notice every big pair of earrings, every peak of cleavage and any skirt above the knee and hold it against you. Make sure that you cover all of your bases and you will be sure to be a prized employee at your job.

Small Business Loans: Outstanding Means to Start or Expand Business

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Are you looking for a lender that can offer you suitable finance to fulfill certain important business projects? Want to enhance your small business in a great way? Wish to fulfill your business dream in an efficient manner? For such purpose, small business loans act as a best financial solution. These kinds of mainly designed for small business holders so that they can get over with fiscal dearth situation in an effective way.

With the help of Business Loans For Women you can conveniently able to grab suitable monetary assistance that may allow you to fulfill many business related purposes in an efficient manner. These requirements can be as follows:-

Purchasing land for the office Buying raw material Purchase of new machinery or any other important equipment Giving salary to the staff and so on.

You are required to give a copy of your business proposal to the lender along with the schedule of how will you make repayment. This will help the lender to give your finance without any doubt and restrictions.

However you can derive small business loans in both secured as well as unsecured ways. The secured small business loans option help you to procure huge loan amount by simply pledging any of your valuable assets like home, automobile, shares or stocks as collateral to the lender against the loan. These loans are provided for longer time period and at lower interest rate.

Conversely, the unsecured small business loans option doesn’t ask you to pledge any collateral against the loan. This can be a good fiscal deal for tenants and non-homeowners who don’t have anything in their name. Through these loans you can take out adequate finance for the shorter and flexible time duration. There is comparatively more interest rate charges on these loans, as these are provided without any collateral placement.

There is no credit check feature involved under Business Loans For Women, which makes bad creditors eligible for the loan. Therefore, people with blemished credit status can freely apply for these loans without worrying about their bad credit tags like CCJs, IVA, bankruptcy, late payments, foreclosures, insolvency, arrears, defaults etc.

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