Advances In Management

Indexed in SCOPUS, Chemical Abstracts Services, UGC, NAAS and Indian Citation Index etc.

Advances In Management

Vol. 5(7) July 2012

Economic Globalization, Trade Gap and the Role of China

Wei Hao*, Huang Haoji1 and Wang Xi2

. School of Economics and Business Administration, Beijing Normal University, 19 Xinjiekou Wai Street, Beijing, P.R. CHINA
2. School of International Business, Beijing Language and Culture University, Beijing 100083, P.R. CHINA

This paper analyzes the foreign trade gap between 36 countries and regions and the role China played from 1978 to 2007. The study finds that the absolute gap among those countries increases but the relative gap decreases, the gap between the developing and the developed decreases, the inter-regional gap of the developed is bigger than the developing. The risk of foreign trade gap between the countries decreases. China has played a significant role in the expansion of foreign trade gaps between countries and regions. So it is necessary for China to change the model of foreign trade.

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Global Food Crisis: Policy Lapses or Market Failure?

Ojha Ruby

PG Dept. of Economics, SNDT Women’s University, Churchgate, Mumbai 400 020, INDIA

It is said that markets are ruthless. In a brutal world of capitalist agriculture, some people are making alternative uses of food and are even destroying that because prices are too low andothers are dying of hunger and literally eating dirt because food prices are too high. In some countries the starving masses are going to the streets and becoming militants out of desperation when they find it impossible to feed their hungry children. Skyrocketing food prices are threatening stability of many governments around the world. International food prices remain volatile and high with the 2011 annual index 24 percent higher than its average in 2010. Prices of certain foods remain dangerously high in many countries, leaving millions of people at risk of malnutrition and hunger. As per “Price Volatility in Food and Agricultural Markets: Policy Responses” (2 June 2011) estimates, numbers of hungry people in the world rose from 820 million in 2007 to more than a billion in 2009. Though the numbers of hungry people have since dropped to about 900 million but these events have increased the number of chronically under-nourished, even during periods of relatively normal prices and low volatility.

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Motivation as a Strategy to enhance Organizational Productivity

Singh Satyendra Kumar

Saipem India Projects Limited, Elegance Tower, 6th floor, Jasola District Centre, Off Mathura Road, New Delhi-110025, INDIA

An organization can enhance its productivity without any substantial cost addition if it can motivate its people to contribute their best to accomplishing organizational tasks. This requires planning and implementing the motivation strategy effectively and successfully. If the motivation strategy can be formulated and implemented effectively and successfully, then it results into more work given the same inputs thus increasing the productivity of the organization. However, this is one of the most challenging tasks for the managers of an organization. This is because they have to first identify the factors which can motivate the people. For this they have to understand the behaviour of the people at the work as work behaviour of the people is a clear indicator of what needs they try to satisfy in work place. This study deals with various work behaviours of the employees of an organization and how those behaviours are related with needs of the people which they try to satisfy through their work; and different motivation strategies in different situations.

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Challenges in Strategic Decision Making and the Corresponding Solution Approaches

Weng Marc Lim

School of Business, Monash University, Caulfield East, Victoria 3145, AUSTRALIA

Understanding and mastering the skill of making good strategic decisions for firms has become increasingly important in the modern global economy. In a rapidly globalizing modern economy, expectations of firms from their employees are no longer limited to a functionally fluent specialization – accounting or marketing.3 In fact, there is an increased importance to understand and master the skill of making good strategic decisions. According to Hambrick and Fedrickson17, strategic decisions are actions carried out by firms to realize its goals and objectives. Nevertheless, strategic decisions are not made effortlessly and are often accompanied by derailing challenges – good techniques are required to manage these challenges. Accordingly, the aim of this paper is to address the challenges facing firms when making strategic decisions and how these challenges are managed with relevant supporting empirical evidences. The articulation of arguments in the paper will focus on strategic decision challenges that firms face externally and internally using empirical evidences from real life cases and news reports.

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Business Prospects of German SMEs in China after the Economic Crisis

Hecker Sebastian

University of Pecs, Department of Business Administration, Rákóczi út 80, 7622, Pécs, HUNGARY

Due to the rapid change of the economical environment in China and especially in the context after the economic crisis research questions became evident on how German small and medium sized enterprises (SME) that have set up their firms in China in the past evaluate their future within the Chinese market. Therefore a study has been conducted where German SMEs in China have been asked to give an estimation on their future business environment e.g. their future sales environment, their future legal and public environment and their future internal operations in China.

The study results draw a very positive picture on the future Chinese business environment. In many aspects the German SMEs assess the prospects to be more appealing than they are today. Especially in terms of their own company development German SME expect high growth rates. Regarding the economic crisis no major drawbacks can be detected.

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Case Study:
Korean Importers’ Evaluations of Exporters’ Marketing Practices

Ha Jungbok

Pyeongtack University, Department of Business Administration, 111 Yongi-dong, Pyeogntaek-si, Gyeonggi-do, 450-407, SOUTH KOREA

As the growth of the international trade becomes one of the major global trends, the relationship between buyers and sellers is considered as fundamental importance for both parties. However, most of the research in international trade has been focused on the seller (exporter) side rather than buyer (importer) side. Since the marketing has always recognized the importance of customers’ needs and wants, it is natural thing for marketers to think of the buyer’s side along with the seller’s side and also modern international marketing emphasizes the importance of understanding and satisfying overseas customers’ needs for success in global markets. This study examined Korean importers’ concerns on their exporters’ marketing practices. A sample of 120 Korean trading companies was surveyed on their U.S., Japan, and European exporters’ marketing practices and several valuable implications were drawn.

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Case Study:
Innovative Business Development Model: The Diasporic Dimension

Pandit Nirali1* and Chari Vijaylaxmi2

1. Chimanbhai Patel Institute of Management and Research, Ahmedabad (Gujarat), INDIA
2. S.D. School of Commerce, Gujarat University, Ahmedabad (Gujarat), INDIA


Business development model innovation is perceived as a way to not just grow profit but also as a way to avert threats from competitors. Business development model innovation is a natural evolution process, recognizing that change is inevitable and is needed once a business model has run its planned course. Therefore, in pursuit of growth, entrepreneurs make major structural changes, collapsing organizational boundaries and leveraging resource procurement from abroad. For centuries, business travelled abroad for many reasons that include availability of raw material (spice trade), availability of technology, (industrial revolution), availability of labor (continuous migrations) and more recently the availability of market demand (emerging economies). Over and above all this was the migration of capital. This gave birth to multinational corporations (MNCs). The MNCs were generally huge business conglomerates which could easily entrench themselves in any market abroad. Later on, the MNC system transformed into diversification of production activities, aboard. This large scale MNC business dispersion is now being shifted to medium and small scale business also. But the pattern of international business linkage at small and medium level is far different from the joint venture, subsidiary, mergers, acquisition or franchisee mode adopted by MNCs. The international business linkage follows a more informal and dispersed model. The main factors which decide this innovative model is the urge of Diaspora for business expansion because of easily available transportation facilities, technology transfers, capital transfers, market accessibility, product development, market intelligence, government regulations and promotions etc.

But more important than these are nonbusiness relations like availability of inside information through family relations, techniques of dealing with government and financial institution, cultural aspects and social networking. These business innovative relations are going to have a significant impact on the growth of business through factors that include cost reduction, strategic flexibility, focus and specialization, advantage of being able to rapidly exploit new markets and product opportunities and shared or reduced risk of capital investment. This is illustrated through a case of a garment manufacturing unit’s business model in Surat Apparel Park.

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Case Study:
Emotional Intelligence and Occupational Stress among the Faculty Members of Private Medical and Engineering Colleges of Uttar Pradesh: A Comparative Study

Singh Indoo* and Jha Ajeya

Department of Management Studies, Sikkim Manipal Institute of Technology, Majitar, Rangpo, Sikkim, INDIA

Prior studies have revealed that emotional intelligence (EI) helps in managing the stress in personal as well as professional life. But the scope of the earlier studies was mostly limited to corporate sector and in the field of education they were limited to the stress in the school teachers. This study tries to find the correlation between emotional intelligence (EI) and occupational stress in the faculty members of privatestressful. The purpose is also to see if there is any organizational and gender difference in the two variables under study. Better stress management leads to better efficiency in any field of work. Hence it can be assumed that if the faculty members have better EI, they will feel less stressed and will eventually have better teaching performance especially when we talk about private colleges where the demand and expectations of the students, parents and management are very high. The present study revealed a strong correlation between emotional intelligence and occupational stress of the faculty members. It also revealed a significant difference in the EI of the medical and engineering faculty members with latter having higher EI but the difference in their occupational stress index (OSI) scores was insignificant. Gender wise difference on the scores of OSI and EI was also not significant.

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The Impact of CSR Perception on Job Attitudes of Employees in India

Patel Nisha Vishnubhai

Department of Commerce and Business Management, Faculty of Commerce, The M.S. University of Baroda, Baroda-390005, (Gujarat), INDIA

Corporate social responsibility is considered as voluntary behavior that contributes to the society welfare. Corporations should not only concentrate on their economic and business outcomes, but also give attention of their effect on the society and environment. The expectations from organization are to improve their employees’ quality of life as well as the well being of employees’ families, local communities and overall society.

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A Study on Investor’s perceptions towards Corporate Reporting Practices in India

Nayak Keyur M.

Laxmi Institute of Management, Sarigam, P. O., Valsad – 396155 (Guj.), INDIA

The primary objective of this study is to investigate the perceptions of the investors regarding the availability, adequacy and usefulness of information disclosed by the companies listed on the stock exchange. A survey methodology was used involving a selected sample of the investors, i.e. Salaried and Professional Investors, Analysts. The corporate reporting disclosure practices and the satisfaction by the type of investors is tested with the help of chi-square test in respect of the following parameters viz. Disclosure of Information in Directors' Report, Disclosure of Risk exposure of the company and Disclosure of information in the annual report and Corporate governance report. The primary data had been collected in the Valsad District of Gujarat State using structured questionnaire. Results demonstrated that users perceive reported information as neither adequate nor relevant to investment decisions.

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