19. Import-export

The one of the international organization which takes one of the important places in the world is World Trade Organization (WTO). Today free trade, open borders and deregulation are the ideal for a lot of countries. Protectionism ceased to occupy a central place in politics. Some countries no longer use this term, even though this fact is present in their economy. The individual nations can argue their interests of the trade negotiations which has eleven-hour sessions. Countries argue for protection of their strategic industries, which they think really important for their economics. For example, European farmers who are argue for their subsidies or the French who are argue for cultural protection. They caring for the conduct of quotas on the number of Hollywood films that Europe import. One of the problems on the international market is dumping. Some countries try to export some goods which no really popular in the home market and which also has low price of production. It happens because these countries want to gain market share in the export market. But they say that they have comparative advantages like producing goods cheaper than everyone else and that they aren’t selling at below cost. The best examples of market without traffic walls and customs duties are single market of the European Union, North American Free Trade Organization (US, Canada and Mexico), ASEAN (Asia) and MERCOSUR (Latin America). The most important part of international trade is payment. The exporter and importer always hope to get what they need. The best guaranty is the letter of credit. There is banks guarantee payments after getting shipping documents with the clean bills of loading and showing the integrity of the product. The International Chamber of Commerce defines list of the standard Inco terms which have to be used in the international trade contracts. One of that is shipping terms like Carriage insurance freight. Example: The plan of Ex-USSR country to create the single market. But this idea is not real. Because a lot of countries think that it is the way to lose their freedom and the USSR will come back.

20. Alliances

The phrase mergers and acquisitions (abbreviated M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another business entity.

Although often used synonymously, the terms merger and acquisition mean slightly different things. When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. This kind of action is more precisely referred to as a "merger of equals". The firms are often of about the same size. Both companies' stocks are surrendered and new company stock is issued in its place.

Transnational mergers and acquisition (common in the expansion of Chinese TNCs)

• Resources exploitation - China National Offshore Oil Corporation became the biggest offshore oil producer in Indonesia by buying off the stakes of local companies

• Acquisition of technologies - buying off the companies that possess technologies.

There are other kinds of alliance: Joint ventures and strategic alliances

Joint venture – two or more companies agree to collaborate and jointly invest in a separate business project. This type of deal allows the partners to combine their strengths in one specific area.

• relevant in expansion to high-risk markets, sometimes the only possible - governmental regulations of the host country (India - local business operations require 51% control by Indian nationals)

• the local owner becomes an integral part of the stakeholder group - increases cultural sensitivity and operational controls

• increase market coverage (an enterprise can expand into other market segments in which the partner has established itself better) in exchange to access to reliable suppliers

S/a are more complicated than mergers and acquisitions. The common goals of the alliance may serve different strategic objectives of partners. Its aim is to take advantage of each other.