VANSH DUA

MODULE 1
(20.03.2023-20.04.2023)

Date : 22.03.2023
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Organization Name : Ajent Shop
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Joining Date : 20.03.2023
Question 1 : What Do You Mean By Globalisation ? How Has It
Affected The World Trade

Answer 1 :
Globalisation is a complex and multi-faceted
phenomenon that involves the increasing
interconnectedness and interdependence of economies,
societies, and cultures
around the world. It
refers to the growing
integration of markets,
production, and trade,
as well as the spread of
ideas, technologies, and
cultures across borders.
Globalisation has had a
profound impact on world trade. It has led to a
dramatic increase in the volume and variety of goods
and services traded across borders, as well as in the
number of firms involved in international trade. It has
also brought about greater competition among firms
and countries, as well as new opportunities for growth
and development.
Characteristics of Globalisation :
➢ Free Trade – Globalisation has helped improve
trade volumes between nations with minimal
interference. The reason is that governments are not

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 micromanaging every minute aspect of business
transactions
➢ Liberalization – One of the main characteristics of
globalisation is the improvement in the business
climate for corporations. It has helped entrepreneurs
to set up businesses and transact both within and
outside the
country. The
rules and
regulations for
companies are
relaxed
significantly to
allow for more
trade between
nations due to
globalisation.
➢ Increase in Employment – Every industry is
responsible for generating both direct and indirect
jobs. And when production increases, it has a
positive effect on employment. Globalisation helps
companies increase their production capacity and
set up operations in different parts of the world.
➢ Standard of Living – With increased economic
activity and opportunities for employment, people
have more money in their pockets. They also have
more options to choose from because of improved
job opportunities.

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 ➢ Outsourcing – One of the characteristics of
globalisation is that it allows companies to bring in
third parties from outside the country to manage
specific processes. They take this step to reduce
internal costs, improve the quality of services or
both. Outsourcing is a boon for several human
resource-rich countries that are looking to generate
employment.
At the same time, globalisation has also brought
challenges and risks:
➢ It has led to increased inequality, both within and
between countries, and has raised concerns about
the social and environmental impacts of economic
growth.
➢ It has also contributed to the rise of populist and
nationalist movements in some countries, which seek
to limit the flow of goods, people, and ideas across
borders.
Overall, the impact of globalisation on world trade has
been both positive and negative, and continues to be a
subject of debate and discussion among policymakers,
academics, and the general public.

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 Question 2 : What Is WTO- World Trade Organization? What
Are It’s Functions. Give Examples

Answer 2 :
❖The World Trade Organization (WTO) is an
international
organization that aims
to promote free and fair
trade among its member
countries.
❖It was established in 1995
as the successor to the
General Agreement on
Tariffs and Trade (GATT), which was founded in 1948.
❖The World Trade Organization (WTO) is a multilateral
organization headquartered in Geneva, Switzerland.
❖The WTO comprises 164 member states. There are also
observer states that are not signatories to the WTO
agreements, and they do not participate in free trade.

The WTO's functions include:

i. Administering trade agreements: The WTO administers
various multilateral trade agreements that have been
negotiated and signed by its member countries.
ii. Providing a forum for trade negotiations: The WTO
provides a forum for member countries to negotiate new
trade agreements and to resolve disputes related to
existing agreements.

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iii. Monitoring national trade policies: The WTO monitors
the trade policies of its member countries to ensure that
they are consistent with WTO rules.
iv. Technical assistance and training: The WTO provides
technical assistance
and training to
developing
countries to help
them participate
more effectively in
the global trading
system.
v. Cooperating with
other international
organizations: The WTO cooperates with other
international organizations, such as the World Bank and
the International Monetary Fund, to promote global
economic development.

Examples of the WTO's functions in action include:

i. Negotiating and enforcing the Agreement on

Agriculture, which governs international trade in
agricultural products.
ii. Providing technical assistance and training to
developing countries to help them improve their trade
capacity and integrate into the global trading system.

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iii. Monitoring the trade policies of member countries to
ensure that they are consistent with the WTO's rules and
principles.
iv. Resolving disputes between member countries, such as
the dispute between the United States and China over
tariffs on certain goods.

Question 3 : What Do You Understand By Finance

Equilibrium? Give Examples.

Answer 3 :
Finance equilibrium, also known as financial
equilibrium, refers to a state in which the financial
markets are in balance, with the supply of funds
equaling the demand for
funds. In other words, it is a
state of equilibrium where the
amount of money being
supplied by investors or savers
is equal to the amount of
money being demanded by
borrowers or investors seeking
to invest in financial assets.
When there is a financial equilibrium, investors and
borrowers are able to find mutually beneficial
transactions that enable them to achieve their financial
goals. However, when there is a lack of financial
equilibrium, it can result in market distortions, such as

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 asset bubbles or credit crunches, which can lead to
financial instability and economic crises.
In a financial equilibrium, interest rates are at a level
that is consistent with the prevailing economic
conditions, such as inflation, economic growth, and
monetary policy. When interest rates are at the right
level, borrowers and lenders are able to find mutually
beneficial transactions that enable them to achieve their
financial goals.

Examples of finance equilibrium include:

✓ Interest rate equilibrium: When the demand for funds is
equal to the supply of funds, the interest rate in the
market will be at an
equilibrium level. For
example, if there is a high
demand for loans from
borrowers, the interest
rate will rise to balance
out the demand and
supply.
✓ Equity market
equilibrium: In a stock
market, the equilibrium
price is the price at which
the demand for shares
equals the supply of shares. For example, if a company
announces a positive earnings report, the demand for its

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 shares may increase, which can lead to a rise in the stock
price.
✓ Foreign exchange market equilibrium: In the foreign
exchange market, the exchange rate is in equilibrium
when the supply of a currency equals the demand for
that currency. For example, if there is a high demand for
the US dollar in the global market, the exchange rate of
the dollar will appreciate relative to other currencies,
which will balance out the demand and supply.

Question 4 : What Are The Major Reasons Behind The Failure

Of Daewoo Motors In India ?
State The Exact Reasons.

Answer 4 :
There
A were several factors that contributed to the failure of
Daewoo Motors in India. Some of the major reasons are:
✓ Poor quality of vehicles:
Daewoo Motors initially
launched their cars in
India at a premium
price point, but the
quality of their vehicles
was not up to the mark.
Many customers
complained about
frequent breakdowns and poor after-sales service, which
resulted in a negative reputation for the brand.

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✓ Inadequate marketing and branding: Daewoo Motors
failed to create a strong brand image in India. They did
not invest enough in marketing and advertising, which
led to low brand awareness and visibility in the Indian
market.
✓ Over-reliance on a single model: Daewoo Motors focused
heavily on their mid-size sedan, the Cielo, which was
initially popular but eventually lost its appeal due to
increasing competition from other brands. The lack of
new models or product innovation also contributed to
the company's decline.
✓ Financial troubles: Daewoo Motors faced financial
difficulties globally, which led to a lack of investment in
their Indian operations. The company was unable to
keep up with the competition due to a lack of funds,
which eventually led to their exit from the Indian
market.
✓ Government policies: Changes in government policies,
including increased taxes on imported cars and
restrictions on foreign investment, made it difficult for
Daewoo Motors to operate profitably in India. These
policies made it challenging for the company to sustain
its operations and remain competitive in the market.

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THANK
YOU
DATE OF
COMPLETION –
23.03.2023

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