Question

Define the following phrases as they apply to issues surrounding multinational corporations.

1. Corporate Social Performance
2. Re-shoring in the global value chain
3. Arms-length trade
4. Transfer pricing
5. Fair-trade standards
6. Gravity trade model
7. International Trade Organization (ITO)
8. New International Economic Order (NIEO)
9. Trade-Related Investment Measures (TRIMs)
10. Multilateral Agreement on Investments (MAIs)

Answer 1

Corporate social performance :

A Corporate organization layout of its process of social responses,principles of social responsibilities and outcomes made responsibilities the social relations made by the social is called cooperate social performance. By utilizing the utilizing business can increase its popularity and publicity which helps to promote the organization. It also shows ethical performance and sustainability of the business. Implementation of social friendly and ethical policies make effective changes in the society It also helps the better performance of a business and its business.

Re-shoring in the global value chain:

supply chain scheme based on economic force is called success. It helps to decrease distribution and supply cost which is th most benefit of reshoring.It is a efficient and fastest method to growth of economy. It decreases issues of unemployment and helps to have a balance in budget and trade deficits. It creates job budget to a great opportunities.

Arm's length transaction:

The transaction in which the seller and the buyer take part independently without influence of each other is defined as Arm's length transaction..It extent have any special relationships for the business transaction. It is considered as fair transaction because it carries out purely at the market price and not for any kind of tax avoidance.And on other hand non arm's transaction is between relatives. This carries carries out with family members,friends or other relatives,which includes personal influence in transaction cost.

Transfer pricing:

The actual price fixed between related enterprises in trade between countries is defined as transfer price.It reduces tax and increases profit of the byuisness.It help in exporting goods at less transfer price so the cost of production also decrease with it.

Fair trade standards:

Ignorer to provide proper support and to make sure the profit for small businesses and workers in agricultural sectors it have a fair trade standards are organised.It have aimed at the development and satisfaction of small scale business men or workers at the lower level of production. fair prices is possible through fair trade standards which helps to promote them.It is designed and implemented to help the workers of developing countries.

Gravity trade model:

It is an economic model in trade fair trade different countries based on traditional form. It helps to understand the interaction between countries,stages cities and all. It is come from the universal law of gravitation proposed by newton which shows the interaction between two objects.It helps to find the migration or stages of people from one place to other. In calculation of gravity model distance between states or functional distance is used.

International trade organization(ITO):

ITO results in decreasing the export market which organization the economic conditions. It is a agency constituted under UN and worsens various functions. it regulates the agreements related to the commodity which assist economic development . It regulates the business agreements that hampers the trade. it promotes the the growth in trade by reducing tariff and other similar trade barriers.

  

New international economic order(NEO):

New in NEO economic order has greater aces to technologies of LD of wealthy and well developed countries by review international patents.The main objective of new international economic order is to promote economic development in developing countries. NEO dealt with self help and south south cooperation. It covers problems like debt crisis, balance payments equilibrium, exchange scarcity.  

Trade related investment measures(Trims):

The agreements Trims that several investments may restricts and restricts trade.According to the agreement the members of World trade organization may not apply measures which discriminates foresight products .The objective of TRIM is to expand liberalization in world trade across the international frontiers. the major limitation of the agreement is that it is applied to trade of goods only.

Multilateral agreement on investments(MAIDS):

This a discipline which is introduced ruga round agreements. Negotiations based on this ease implemented by the government in the general meeting of OECD that conducts annul. these are commerce treaties between 3 or more countries. It helps to annul the tariff for business with regard to their exports and imports. It wont have notable their on economic growth . But it helps i impact the global economy for making countries more and more competitive.