IMF Throws Ukraine $27-billion Lifeline as Third Recession in 6 Years Looms
The article that was published in financial post portrays the money crisis Ukraine is going through, where the country is caught up in international debts. Ukraine government owns Washington lenders a loan of US$14 billion, 1.6 billion Euros to European Union and US$3 billion to the Russian government. These debts have weakened international business with a majority of countries as they claim the country is on the verge of bankruptcy and thus they could not involve themselves in business links unless the debts are paid. The situation has attracted the attention of the International Monetary Fund to intervene and try to help the country.
The Ukraine government money crisis should be a matter that should be well observed by economists and budget planners before the situation gets worse. For instance, Ukraine relies on Russia for the supply of gas, and this means that with the outstanding debt that has not been paid to the Russian government, supply of this essential commodity could be cut automatically, thus putting its citizen in problem. There is already a threat to cut down the supply of gas by one third followed by withdrawal of discounts offered by Russian to Ukraine (Krasnolutska & Marchak, 2014).
National Trade Policy for Retailers in India
In this article, the author expresses the fact that for a country to have sufficient and reliable cooperation with other countries (in terms of business), it should have concrete national trade policies that would enable it to compete globally. These policies enable international countries to cooperate (mutually) with such country. It is, again, the responsibility of the national government to come up with laws and strategies that would see the company achieve global competence. India remains as one of the countries with high population and insufficient resources to maintain the growing number. The article suggests improvement of national policy within its framework to achieve global status. The trade policy would facilitate modernization, credit, as well as infrastructure to its retailers to achieve international standards commensurate with the other countries. By doing so, the government would gain from the international investors and aid to perform other projects thus raising employment and tariffs (through trade).
Law and Telecom Minister Kapil Sibal is trying to encourage the government of India to come up with policies that would improve infrastructure through practicing modernization of ICT and online trading in the country. As the responsibility of the government, the minister argued the political parties should consider boosting of ICT in their manifestos. India, unlike the other countries, has been left behind in terms of infrastructure. Encouraging its traders to expand and compete globally (through having improvised facilities equivalent to those being used in the developed world), would, therefore, be necessary.
Therefore, changing the policies would make India have good corporate relationship with other countries thus improving foreign exchange and growing economy in their country. For example, India can develop cooperation with a country with good trading policies such as the United States of America, where they control market for their product has balanced economy. Their exchange rate is usually stable as they still have the best currency without inflation. However, to come up with such strategies, the government should formulate certain laws that would see people - especially retailer or other business people - take control of their business. With the rising technology, it would be important for business people to make use of ICT as one of the policies that would create easy and reliable ways to communicate and run many of their businesses. Modernization means keeping the standards that would also attract foreign investors in the country. These rules would apply more to those developing countries that are in need of aids and other funds like monetary fund’s to feed the growing population (The Hindu, 2014).
Improvement of trade policies in India would also improve the marketing of their products through the use of online trading platforms. Trading online is one of the fastest ways to make deals and business. Therefore, to compete or improve, the global cooperation today should be met by well structure trading policies in all sectors.
Managing International Strategic Alliance
In this article, the author defines International Strategic Management (ISM) refers to management and planning process that is aimed at coming up with strategies that allow a certain organization or company to expand internationally as well as compete globally. The planning can be used in the development of a specific international strategy. Therefore, the organization should have the ability to determine the products or services that are intended to be sold, how and where the organization would make these services or products, where to sell them, as well as how the organization would acquire the essential resources to run the tasks. Moreover, the most important strategy is how the company expects to outplay the competitors. This should be considered together with the way to enter a foreign market and come up with the best way to form alliances with those foreign organizations.
Therefore, sufficient management skills are highly needed for such success. Local competitors are usually complementary in the quest to succeed abroad. For instance, American Online provides a couple of alliances abroad through consumer electronic, media, banking and retail in foreign countries. Through such alliances, the company grows day by day. Another example would be System Logic Company that provides IT service. The company is small, but it has formed alliances with big companies like Microsoft.
Therefore, it is important to look at what makes such small companies make good alliance with big companies. For success in forming such alliances, a company must have had local alliances before, which means the company would have some experience in that sector. Therefore, the organization would have a high chance to succeed in other alliances internationally. However, the management team should learn to expect failure at some point although experience would automatically qualify the organizations (Sabramanian, 2014).
Secondly, equitability would be important such that the company understands the legal framework and the environment. System Logics, for instance, provide management know how and though the company might be small (as compared to others), but they provide the best service that would convince the other company like Microsoft. Again, if the agreement of the alliances puts constraints towards the partner, levels of success would be low and thus it would be important to understand such effects early in advance. Another point for success is knowledge of the management. To create sufficient business environment, there must be a relationship manager for both sides to monitor and manage the daily activities. The companies in reference have nice structural leadership where on top of the relationship manager, is a manager and the formal leader of the alliance. All these people sit to discuss issues that would be important for the company. They come up with conclusive international strategic management, which includes good planning on how to undertake the tasks. They follow the correct order in entering the foreign market, analyzing every single step. These include the market, their competitors, quality of their services or product and legal matters.
References
Krasnolutska, D., & Marchak, D. (2014, March Thursday). IMF throws Ukraine $27-billion lifeline as third recession in 6 years looms. Retrieved March Thursday, 2014, from Financial Post: http://business.financialpost.com/2014/03/27/imf-throws-ukraine-27- billion-lifeline-as-third-recession-in-6-years-looms/
Sabramanian, K. (2014). Seidman Business Review. Retrieved March Thursday, 2014, from Managing International Strategic Alliance: Lesson from the trenches : http://scholarworks.gvsu.edu/cgi/viewcontent.cgi?article=1118&context=sbr
The Hindu. (2014, February Friday). The Hindu. Retrieved March Thursday, 2014, from Sibal calls for national trade policy for retailers: http://www.thehindu.com/business/sibal-calls- for-national-trade-policy-for-retailers/article5736879.ece
