INTERNATIONAL MARKETING Article Review- CIA 2

Submitted To: Prof. C.S Dikshit

Submitted By: Ketan Sharma 1121408

Article 1 Title: Embedded Trade: A Third-Party Effect

Source: JOURNAL Source Type: SOCIAL SCIENCE QUARTERLY, Volume 91, Number 4, December 2010 Author: Kim.S, Skvortez.J

Introduction The article talks about the concept of embeddedness to bilateral trade. It focuses on structural embeddedness, how a pair of countries is embedded in the overall network of trade ties, in contrast to social embeddedness, attributes such as common language. Trade between countries X and Y is influenced by the trade patterns that they have with third parties (country Z). A positive correlation between the connections to common third parties and bilateral trade of a country dyad. Structural embeddedness has found wide application as a concept in the domain of persons, but there is no a priori reason why it should not also have effects at a macro level. Trade is more than a simple exchange of goods. The transfer of information via common third parties remains important in the modern globalizing world. Although the development of communication technologies has made it far less costly to search for information, it has not created perfect information in the global market.

Key Areas of Discussion Trade is an economic phenomenon rather than a sociological one i.e. international exchange of goods is determined by market (supply and demand) and economic considerations (prices and profits), the exchange is independent of social and structural influences. Socially embedded ties tend to generate trust and to discourage malfeasance, which are often more critical determinants of economic transaction than are prices and profits. The transfer of information via common third parties remains important in the modern globalizing world.

Learnings

International trade is a specific type of social relationship connecting different nation-states through economic exchange. This article examined the impact of a dyads structural embed dedness on bilateral trade, controlling for dyadic attributes associated with social embeddedness and the gravity model of trade.

Article 2

Title: International Trade Agreements challenge tobacco and alcohol control policies Source: Journal Source Type: Taylor & Francis, Drug and Alcohol Impact, November 2006, 25 Vol, Pg 567 579 Author: DONALD W. ZEIGLER

Introduction This article mainly deals with the aspects of the viability of having tobacco and alcohol under international trade agreements. It also talks about the positive and negative impacts of these commodities and their effect on the international trade. Trade agreements are usually done with a view to decrease the tariffs and barriers and provide commodities at lower prices. But alcohol and tobacco are special cases where in there is reduction in the access, advertisement and promotion in order to reduce the health and social problems in the society.

Key Areas of Discussions This article brings two contradicting views of having the alcohol and tobacco commodities under free trade agreements in the international trade scenario. Public health issues are to be kept in mind while getting into such trade agreements. The role of governments is also vital, because it

cannot completely ban the import of these commodities hence bring in superficial barriers such as reduced access, limiting promotions and increased taxes on these items. The article throws light on the liberalisation of international alcohol policies which has lead to the increased availability of alcohol. The article also lays weightage on the fact that the increased investments in these two commodities will have a positive economic impact on the countrys economy. Alcohol is not treated as a ordinary trade commodity. Major health issues related to consumption of alcohol have been discovered and is a major source for many diseases worldwide. Tobacco also is known for millions of deaths every year. This article brings to light the Technical Barriers to Trade Agreement (TBT) which is a code followed by the various government and institutions related to product/services, to ensure that no hindrances occur in their trade. TBT in the developed nations have been very actively striving for the safety of their respective countries when it comes to alcohol and tobacco consumption. This article also speaks about as to how international trade agreements have been evolving over time and how their focuses are changing from just free trade to sustainable trade and collaborative development. This article also suggests that alcohol and tobacco commodities be removed from trade agreements so that the international community can achieve the biggest health benefit.

Learnings Trade agreements are very complex and have implications at the macro level of any countrys health policy. In any trade agreement, the economic factor is the more dominant one rather than the social and public health issues. This laid back approach of the governments can lead to decreased health conditions of the nation. On entering into trade agreements, the respective institutions must be consulted before making any major steps internationally and putting the countrysociety at risk.