Industrial Management

Portfolio Investment represents passive holdings of

securities such as foreign stocks, bonds, or other

financial assets, none of which entails active management

or control of the securities' issuer by the investor; where

such control exists, it is known as foreign direct

investment. Generally, this means the investor holds less

than 10% of the total shares or less than the amount needed

to hold the majority vote.

Some examples of portfolio investment are:

purchase of shares in a foreign company.

purchase of bonds issued by a foreign government.

acquisition of assets in a foreign country.

Factors affecting international portfolio investment:

tax rates on interest or dividends (investors will normally

prefer countries where the tax rates are relatively low)

interest rates (money tends to flow to countries with high

interest rates)

exchange rates (foreign investors may be attracted if the

local currency is expected to strengthen)

Portfolio investment is part of the capital account on the

balance of payments statistics

This theory was propounded by Eli-heckscher(1879-1952) and

later refined by Swedish economist Bertil Ohlin(1899-1979)

in 1933.

Acoording to Ohlin, the differences in the factor prices

are due to the differences in the factor endowments in

different countries and the differences in production

functions for different commodities. Hence Ohlin's theory

can be called factor endowment theory.

ASSUMPTIONS OF THEORY

1.There are 2 countries or regions say X and Y, each having

a free papre currency of producing any two commodities.

2. There are 2 factors of production i.e. labour and

capital.

3. the factors of production are fully mobilewithin each

region of a country while they are rtelatively immobile in

between any two regions or two countries.

4. Competition in all markets.

5. Each factor is fully employed in each country with or

without trade.

6. There are no transportation of information costs.

7. There are no imposed tarrifs or other barriers to trade.

8. All production functions are lineally homogeneous.

9. All production functions are immune to factor intensity

reversals.

10. Both countries produce both goods with or without trade.

TRIM: Trade Related Investment Measures are rules that

apply to the domestic regulations a country applies to

foreign investors, often as part of an industrial policy.

A....TRIM is/are rules, which restrict preference of

domestic firms and thereby enable international firms to

operate more easily within foreign markets.

Example: Export Prohibited items from India: Gold, animals,

natural resources (some kind of trees) etc.

TRIP: Trade Related Aspects of Intellectual Property Rights

is an agreement that sets down minimum standards for many

forms of intellectual property regulation. Specifically,

contains requirements that nations law must meet for:

copyright rights, patents; trademarks and undisclosed of

confidential information.

It all started from the USA sub- prime (housing loan )

crisis.The USA banks n financial institutions went on

lending for housing construction n buying without looking

to the re paying capacity of the borrowers.As the

properties were mortgaged with them,they thought to re

possess the house in case of default n sell them in the

market as there was huge demand.The demand started

falling .There was default n re possession.The properties

could not be sold as there was no demand.The banks which

invested huge amount on properties,felt the pinch.Many of

them went bankrupt.The whole financial system of USA was in

turmoil.

Because of the financial turmoil,the financial institutions

could not provide the required loan to the industrial

sector.Want of finance forced industries to cut production

n jobs.The economy in general was affected ,due to falling

production,employment n purchasing power of the people.The

USA was in economic recession.

The USA is the richest economy of the world.Many countries

of the world,depend on it for business.As USA was under the

grips of recession ,it could not do the volume of

business,it used to do with other countries.This adversely

affected,the business of other countries of the world

including India.

USA made the huge investment ,in other countries of the

world including India.To meet its domestic demand it

started withdrawing funds from other countries ,where it

made investment.The partially complete projects with USA

assistance remain incomplete due to want of funds.

These developments adversely affected the industrial sector

of the entire world including India.The industries started

cutting production n jobs.Thus,the entire world came under

the grips of economic recession.

So,the small fire which started in USA started taking the

form of a huge fire n captured the entire world n the

result is global recession n financial turmoil.

Logistics is the process of effectively moving the goods

from the point of origin or from any supply point to the

point of consumption. The term effectively is the key in

logistics, it denotes ‘how well it meet the demand’ by

considering the factors like time, quantity, quality, cost

etc. Logistics includes various intermediate activities

like information, inventory, material handling,

transportation, warehousing and now the new era brings the

word called collaboration to frame the new terminologies

called 3PL and 4PL. 3PL is nothing but Third party

logistics, that is ‘a core logistics player executing any

logistics work outsourced by a manufacturer or others’.

Conversely, 4PL is Fourth party logistics, ‘a core

logistics player having collaboration with other players in

order to perform all the logistic works outsourced by a

manufacturer or client’. The term “any logistics work”

and “all logistics work” give the distinction between the

two.

Logistics is a process by which we can transfer the goods

or product from one place to other or from the place from

where is originated and to the place where it’s in demand

or where it’s in need. In ancient the term logistics was

used by army because the use the transfer the armed and

soldiers from one place to other where ever they are

required. But presently we use logistics very widely b, cos

presently all the firm and company depend on logistics foe

moving their goods(raw matrial,finished good or finished

product).

The main element of logistics is

1-transportation

2-warehousing

3-inventory

4-material handling

5-transfer of information

6-packging

And we can say that this all the element of logistics is

the main work of logistics:-

1. Transportation- to send the goods from one place to

other. By any means of transportation.

Air ways, Water ways, or by Land ways.

2. Warehousing- To store the goods in a particular place.

Because whenever they are needed the producer can use those

goods. And it’s also important because the producers are

producing the goods in huge quantity and for storing them

the warehouse is very much needed.

3. Inventory- This is also one of the most important part

of work of logistics b’cos to maintain the proper records

and when ever any recorded is needed it can be produce

easily for the funder purpose .

4. Martial handling- for the uploading and unloading the

material handling is very much needed and thou the goods

are very important for the producer as well as for the

consumer also. For that the uploading and unloading of the

goods in proper ways the martial handling is very much

needed.

5. Transfer of Information- The transfer of information is

also the important work of logistics cos for smooth running

of any organization the information should be transfer

whenever they are required. And have to maintain all the

important information.

6. Packging- Packaging is one of the most important parts

of logistics as well for selling of the product. By

packaging the product can be protected by the climatic

condition as well as the product can be kept for long time.

And will look attractive for the purpose of sale.

1. Simply put, using the ABC Class coding for item being

manufactured and/or assembled. Your question is very broad

and hard to answer since you are asking a question that

involves to many departments. But generally speaking, when

it comes to cost, ship dates, quantities ordered, the ABC

rule is best.

2. A "Purchase Order" is a legal and binding contract

between a Manufacturer and Supplier that stipulates the item

ordered, quantity of item, ship dates, and cost of item that

the Supplier agrees to supply the Manufacturer.

A "Invoice" is what the Supplier sends to the Manufacturer

after or with the items that are described in a Purchase

Order. The Invoice contains the item description, quantity

shipped, and cost of said item and is to be paid by the

Manufacturer according to the terms agreed upon either ahead

of time or as described in the Purchase Order or as noted on

the Invoice. Generally, the terms are Net 30 days.

3. All items to be purchased have a blueprint or a listing

of what this item is made of and/or a Manufacturer part

number. If it is to be a manufactured part made from a

blueprint, the purchasing agent has the responsibility to

send out for quote (3 vendor min.) and receive from the

Vendor, a list of prices based on quantity ordered. The best

product and material come from reputable and established

companies that deal with this type of product. Larger

companies have better price since they deal with larger

volumes of raw material and better machining equipment and

more experienced personnel.