Dubai Financial Market Essay Example | Topics and Well Written Essays - 1750 words

Dubai Financial Market - Essay Example Dubai Financial Market (DFM) is one of the few stock exchanges of UAE which was established as a public institution on March 26, 2000 (Dubai Financial Market, 2013a). It has its own independent body which was formed as a result of a resolution passed by the Ministry of Economy (MOE) number 14 2000 (Dubai Financial Market, 2013a). It operates as secondary market responsible for trading of securities, bonds, units of investment fund, any other financial instrument which is issued by the public joint stock companies, Federal government or any other local government & public institutions of the country. DFM was established as a joint stock company with a paid up capital 8 billion Dirham with a par value of 1.6 per share. The first IPO by DFM had resulted in more than 8 billion Dirham. The main objective of DFM is to make it a world class market place and provide the stakeholders with innovative facilities in trading, settlement, depositary of securities and clearing in an efficient metho d. Some of the important market values of DFM are efficiency, transparency, innovation, confidentiality and integrity. The existence of a strong investment market in UAE has attracted several potential investors and is considered as one of the most potential investment hubs of the world. As per a survey conducted by the Economic Department of Dubai 28 percent of the surveyed respondents had claimed Dubai to the most lucrative investment destinations of the world (DED, 2012). Mission and Objectives of DFM The mission and the objective of DFM are to create a fair, transparent and efficient liquid market for smooth trading purposes. It helps in provident various investment opportunities through optimum utilization of resources. The management of DFM provides opportunities for investment purposes in securities markets which would serve for the best interest of the Dubai economy. It also helps in facilitating liquidation of funds invested in securities markets which ensures the smooth interaction between demand and supply by developing principles of fair dealing. One of the main objectives is to arrange for transfer of ownership of securities through deposit, transfer and clearing center within an integrated system which enables fast and correct transfer of ownership of shares. Operations of DFM DFM was initially operated by the government of UAE however, in the year 2006 DFM had turned into a public joint stock company through an Initial Public Offering (IPO) which led to sale of 20 perc ent of the shares to the public and the remaining 80 percent were subscribed by Bourse Dubai. Figure 2: Organizational Hierarchy of DFM (Source: Dubai Financial Market, 2013c) Registrar of Listed Public Shareholding Company The registrar of the issuer company are an essential element of the securities market and the first necessary step for the investor is to submit the

Hospitals and Medicine in the American Civil War 1861-1865 Research Paper

Hospitals and Medicine in the American Civil War 1861-1865 - Research Paper Example Many women volunteered to become nurses during the civil war, which was an indication of their strength to care for the men who were out fighting. In the military hospitals, the duties of the nurses were usually domestic. They prepared and served meals, making sure that they accommodated every patient’s diet. The doctors were the determinants whether a patient was to receive a low, half or full diet. Nurses had to maintain track of every patient’s meal. In addition, nurses were supposed to supply linens and clothing to the soldiers. The nurses participated in surgeries by providing emotional support to the soldiers during the surgery process. They participated in talking, writing and reading for the soldiers in order to give them emotional support. In most hospitals, the nurses were sisters, who came from different religious orders. Civil war nurses used to wear dark colors, usually black or brown color, which was a requirement by the government. The dresses were design ed to serve the function and were not meant for fashion. During the civil war, the hospitals were under staffed. Physicians had a variety of medications at their reach to treat injured and sick soldiers. Some of the medications that they used are used even today. Many medications were effective but crude; others had a placebo effect only. Anesthetics were commonly used during the civil war and mostly in amputations. ... The hospitals did not have well trained doctors since during that period; there were no medical schools to train the doctors. The few doctors who had acquired medical knowledge were not adequately trained to perform most of the required performance for treatment. In the hospitals, there were no antibiotics because, at the time, medical technology had not developed. Doctors relied mostly on herbal medicine in prescribing treatments. The doctors did not sterilize or clean wounds during medication. The hospitals were mainly not housed, and most of the treatments and services were provided outside. The nurses, who worked with the doctors, were also untrained and were mainly sisters professing different religions. Most of the nurses worked under volunteer ship. Doctors treated patients on the ground without worrying about the dirty condition or the environment. Most people developed infections after surgery, and this condition was referred as surgical fever. Hospital systems, which provid e hospital care to the patients, had not been developed. X-rays, blood typing and modern health tests and procedures did not exist. Before the civil war, there were no military hospitals. When the civil war broke, it was deemed necessary to have hospitals where soldiers and other patients received treatments. During the time, many buildings and institutions were converted in to hospitals. Some of the major hospitals during the time were Campbell Hospital, Armory Square Hospital, Harewood Hospital and Reynolds Barracks Hospital. These hospitals received many patients despite, the problems that they faced. Surgery was the commonest treatment for wounds, despite the low chance for survival. Before the civil war, the number of doctors who had ever performed

Performing Arts - Film and Drama Essay Example | Topics and Well Written Essays - 750 words

Performing Arts - Film and Drama - Essay Example In the silver screen, the audience, regardless of seat location, has a relatively better view of the presentation. In this regard, the actors may easily convey emotions or thoughts through their facial expression. The multiple cameras used in shooting a movie may zoom in on a particular angle such that the audience may have a good view of what the director and cinematographer intend for them to focus on. On the contrary, the audience of a live drama, especially in large theatres, may have a limited view of actors’ facial expressions. As such, they would have to utilize other non-verbal forms of communication to get their emotions across. With this, stage actors put much emphasis on gestures rather than facial expression to enable the audience to relate. In â€Å"The Constant Gardener†, movie actors Ralph Fiennes and Rachel Weisz have portrayed the characters - British diplomat Justin Quayle and his activist wife Tessa, in a much toned down manner. They played the role a s if in real life, how real people normally react in dealing with the given dilemmas. In contrast, energy level of stage actors Kaleo Griffith and Ruth Eglsaer, who played the role of Jack Tanner and Ann Whitefield are relatively higher. They delivered dialogues and acted out gestures in a manner that electrified the audience and carry the story forward. Since film is recorded and edited prior to actual showing, the shift in the setting is quite flexible. Moreover, in the movies, scenes can be shot on location.

Marketing and Public Relations for Music and Media Essay

Marketing and Public Relations for Music and Media - Essay Example On the basis of research an appropriate marketing strategy comprised of guerrilla marketing tactics. The paper would also analyse the impact of demographics, supply chain and distributors towards influencing the business prospects and viability of the band. Based on this research an appropriate product mix would be formulated with a detailed financial analysis of the financial outcomes of the strategy. Finally a set of plausible recommendations would be framed that would serve to summarise the findings of the study and suggest certain strategies for the music band so as to make it popular among the target audience and establish a brand name and favourably position itself in the highly competitive market. General Overview In present competitive world, the role of marketing has become more prominent and a key success fact for the competing companies. With development of modern business concept, the there also have been significant improvements in the marketing practices. The process of drafting an efficient marketing plan includes a number of tasks, and the most important aspect in this process is that the marketers always aim to follow a customer centric of customer focused marketing plan. The target customers can also be defined as the target audience. The primary objective of marketing plan is to deliver the predefined message to the target audience. The process of delivering g message to the relevant and potential target audience is known as communicational marketing. Communication is an integral part of marketing mix that must be designed effectively with by considering a number of factors like public relation, advertising, effective campaign message, and target audience etc (Trehan and Trehan, 2010, p.17). This paper will attempt to present a comprehensive promotional marketing plan for promoting music and media through an effective communication process. This promotional marketing plan basically strives to develop a campaign plan for promoting a brand imag e of rock-music band. In meet this task, multiple marketing models, tools and theories will be used by focusing the target audience. The band is UK-based and hence, this promotional plan will focus on UK market. The product of this band is basically its music which will be distributed through CDs and online download. Therefore, in order to promote the music specific target markets will be identified and defined. Marketing Strategy Overview In the age of high competition it has become very essential for business organizations to develop a marketing strategy that effectively communicates its product or services among the members of the target audience such that the consumers are aware of the product and are able to distinguish between the product and services offered by the competitors in the market. Music bands also face the same situations as there are a large number of such players in the market. The marketing strategies of the bands must largely include a comprehensive framework c omprised of a step wise plan that includes

Promote communication in health and social care Essay Example for Free

Promote communication in health and social care Essay Communication is one of the most essential tools we have to help us interact with other people around us. We use it constantly in our everyday lives whether it be at work, with friends or at home with our families. The way we communicate reflects our personality and the way we come across to other people and build trust and relationships. Reasons why people communicate. †¢ Building relationships with the people around us †¢ Maintaining relationships †¢ Sharing ideas and thoughts †¢ Expressing feelings and needs †¢ Gaining reassurance and acknowledgement †¢ Gaining information and sharing information When we have a new child starting we have an â€Å"all about me† form that we ask the parent to complete. We do this to get to know the child and his/her likes and dislikes so that they can feel comfortable and to start building a relationship with that child and parent. We sit down with the parent to have a talk about this and also ask them if they would like a drink so that they feel welcome and at ease. As well as building relationships with the children and parents it is important to build relationships with the people we work with. Asking them questions about themselves and telling them about yourself. When a parent brings a child in in the morning we greet them and the child saying good morning and smiling. Likewise when the child is collected saying goodbye and taking time talking to the parent about the childs day. This helps maintain the relationship with the parent and child. Letting them know that we have time to speak to them and to listen. Likewise talking to the other staff members about their interests or if they had a nice weekend. Greeting them when coming in also helps to maintain a good working relationship with them. It is important for adults as well as children that they feel listened to and feel like their ideas and thoughts are important. Listening to a child will not only help build a relationship with that child but also make the child feel valued and build their self esteem. Also listening to what they have to say and respecting their feelings is an important way to meet the childs needs. When we meet new people one of the first things we do is to share and gain information with that person. This will help to establish a relationship with that person. This is also a vital part of working well with other people. When starting at the setting I first of all did this with the other staff by telling them about me and learning about them and also learning about the setting and how they do things there. With the children I asked them questions like their names and about the important people in their lives. This has helped me build relationships not just with the children at the setting but also t he people that I work with. Especially with the children that I work with I am finding it very important in building a relationship with them to reassure them and acknowledge their achievements. Praising them and showing them with my body language that they are important. They respond well to doing â€Å"high 5s† and keeping eye contact while they are talking to me. Likewise using some of the same tools with parents and colleagues help to acknowledge and reassure them that I am interested in what they have to say. It is very important to be able to communicate well with the people you work with. Not just to be happy yourself and to feel valued but also to provide the best care for the children in your setting. It is also important to be able to communicate well with the parents so that they feel that their needs are being met. They need to be able to leave the children in your care knowing that they will be safe and happy. When communicating with people we dont just use our voices but also non-verbal communication like eye contact, touch and body language. The non-verbal communication can be more powerful than the verbal. At the setting where I work we have a little boy who isnt using many words yet to communicate. He will come and take your hand and show you what it is he  wants. Using the information we have in the â€Å"all about me† form we know that he likes animals and to watch The Jungle Book on DVD. So we get the animals out and talk to him about them, asking him what noises those animals make and what they like to eat. Non-verbal communication is also very powerful when speaking to adults. Looking a the person you are speaking to can give you an idea of how they are feeling and also how they are reacting to what you are saying. The way you say some thing might be understood one way face to face with a person but will be understood differently over the telephone. Likewise listening skills are a very good tool to communicate well with the people around you. If you dont take time to listen to the children you will not be able to build a relationship with them. Also being able to learn from the other staff at your setting is important and would be impossible without good listening skills. If the communication isnt clear it can lead to misunderstanding. This can happen easily especially with children at a young age. It can also be a factor that a child, parent or colleague come from a different culture. As I am from Denmark but have lived in the UK for more than 13 years now I have felt this first hand. When I first moved here I worked with a man who used to speak to me as if I didnt understand. That made me feel like I was inadequate whereas he probably thought he was helping me. On the other hand I have had people using long and difficult words that I didnt understand and therefore making me feel less able to communicate with them. Feeling comfortable enough to ask questions and to say to the people you work with that you didnt understand is very important so that misunderstandings dont happen. Using different skills of communication would also be very helpful to make sure that the person you are talking to will be able to understand you. You might have to simplify y our language or use visual aids like pictures or in some cases have to use outside help like a translator or a speech therapist. To me good communication is all about building relationships with the people around you. This is even more important in the area of work that we do with children. Not only building the relationship with the parents, children and  colleagues but to teach the children from a young age to also communicate well and to help them to learn to build their own relationships with us, the children around them and everywhere else that they meet other people. Book used for information: Level 3 Diploma Children Young peoples Workforce Early Learning and Childcare by Penny Tassoni, Kate Beith, Kath Bulman and Sue Griffin

Risk Management in Business: A Case Study

Risk Management in Business: A Case Study INTRODUCTION SITUATION Every day, there is the chance that some sort of business interruption, crisis, disaster, or emergency will occur. Anything that prevents access to key processes and activities can be defined as a disaster. Companies can experience many different threats to their mission critical systems such as fires, floods, lightning storms and humidity to disgruntled employees, hackers, human error, power failures and viruses. A disaster can happen at any time and it is vital to be prepared in the event that one occurs. NEED To be prepared for a business interruption, the organization must have a carefully crafted and comprehensive plan that describes risks, impacts, and step-by-step recovery strategies for critical business processes in various disaster and emergency scenarios. Without a plan, the team will be flying blind when an interruption occurs. The plan provides the necessary tools to mitigate interruptions and resume operations as quickly as possible, greatly facilitating decision-making and taking action when there is scant time and stress levels are elevated. CHALLENGE Using the information in the risk assessment to create effective recovery strategies for critical processes in all departments, incorporating these strategies into a comprehensive business continuity plan, and encouraging ownership of the plan across the organization, and ultimately, achieving the highest resiliency possible with limited resources. SOLUTION Create the recovery strategies department-by-department, process-by-process. This allows each department to focus on strategies specifically relevant to their critical processes without extraneous information from other departments. Do the same for your business continuity plan, writing smaller plans by department. Also, use a template to document your recovery strategies to ensure process consistency across the organization. Finally, have plans reviewed and approved by department heads and distributed to all employees to encourage ownership and pride in the plan. RESULT Each department in the organization will have a comprehensive action plan for business continuity outlining the steps to take to recover vital processes in various emergency scenarios. All employees will have their own copy of the plan, ready to use immediately when a disruption occurs. Employees will take ownership of the organizations business continuity effort and this effort will be further ingrained in the organizations corporate culture. CHOCOLATE MANUFACTURING COMPANY AN OVERVIEW The Chocolate Company since inception in 1990 has been largely responsible for satisfying the countrys demand for Chocolates and Sugar Confectionery. Situated at Rusayl Industrial Estates in Muscat, Sultanate of Oman, the plant has various lines producing a wide range of confectionery like Éclairs, Toffees, Fudges, Caramels, Hard Boiled Candy and Enrobed Chocolates. These products are available in attractive packaging and premium Gift Boxes making them ideal for gifting as well as for own consumption. Most of the packaging in the Gift Pack segment has been carefully selected to ensure its enduring utility, thereby giving our valued customers an added benefit. The confectionery is produced by experienced personnel under stringent quality control and hygiene standards. State-of-the-art manufacturing facilities ensure products of international quality. The company in its relentless pursuit of quality obtained HACCP Certification in April, 2004. The Company, through its uncompromising stand on quality and competitive pricing, has successfully penetrated countries all over the Gulf, the African continent, Asia, Australia, New Zealand, Canada, South Africa, USA and the UK. The principal business processes involved are Procurement of raw materials and consumables. Production and Quality control. Distribution and marketing. Inventory Management. Pricing and cost control. Feedback from consumers and redressal systems. Publicity and promotional activities. Recruitment and HR. Finance Administration. Corporate communications and public relations. Legal and secretarial matters. Investor relations. Maintenance of equipment and other assets. Capital expenditure for equipment and other purposes. IT systems and telecommunications. Transportation and Logistics. Today, manufacturing sector companies like chocolate manufacturing operates in increasingly complex, competitive and global markets. The ability to manage risks across geographies, products, assets, customer segments and functional departments is of paramount importance. The inability to manage these risks can cause irreparable damages. Chocolate company will always face the likelihood of being impacted by uncertain or adverse future events. These uncertainties will have an impact on a companys ability to generate capital and shareholders returns. The company Board expects that management will not only look at where the company may be exposed to risk, but also how these risks can be managed to influence favorable business outcomes. RISK AND RISK MANAGEMENT Risk Management Methodology followed by the chocolate company The risk management methodology at the chocolate company encompass the scope of risks to be managed, the process/systems and procedures to manage risk and the roles and responsibilities of individuals involved in risk management. The framework is comprehensive enough to capture all risks that the company is exposed to and have flexibility to accommodate any change in business activities. The chocolate companys effective risk management methodology includes Risk Policy framework. Identification of risks. Measurement and Impact Assessment. Management of the risks. Monitoring Reporting and Control. A. Risk Policy Framework The following fundamental principles should be considered by the company to develop and implement a proactive risk management program and help them to identify any potential areas of concern: Acceptance of a risk management framework: A formal risk management framework is needed at this company, to guide the integration of risk management into the companys day to day operations. Corporate governance and risk: At this company,corporate governance is the prime responsibility of the Board of Directors and the General Manager. It combines legal duties with responsibilities to improve and monitor the performance of the company. Establish the risk response strategy: Following the agreement on the risk assessment rankings in all functional departments, management action will need to be taken to reduce the risk levels where they have been deemed unacceptably high or alternatively remove constraints where they are preventing the business from pursuing opportunities. Assigning responsibility for risk management change process: It is important for the company to ensure that the daily operation of the business supports this strategy and that the staff understands the proposed changes. Re-sourcing: Risk management is the responsibility of all levels of management. Communication and training: Implementing a communication and training program is important to introduce the concept of risk management. Monitoring of risk management process: To ensure that risk responses gaps are filled and that the risk responses continue to operate effectively and remain appropriate in light of changing conditions. B. Identification of Various Risks of The Company While drafting this Risk management Policy, the primary risk exposures at the company X that are identified is provided below, which are inclusive but not exhaustive and it will be the responsibility of the Risk Management Committee to review these on a periodic basis. I. Market Risks It is the risk that the value of the company will be adversely affected by movements in market rates or prices, foreign exchange rates, national global fluctuations, credit spreads and/or commodity prices resulting in a loss to earnings and capital. The market risks identified at this chocolate company are as follows Government Policy risks Product Risks Environmental risks Volatility of export orders Price Competition in the local export market Currency fluctuation for export orders II. Operational Risks The operational risks identified at chocolate company are as follows Fire Allied Risks Machinery breakdown/ obsolescence Volatility of Raw material Packing material prices Quality/ Ageing risks of Raw material/ Packing material Delivery risk of Suppliers Loss of data information- IT security Manpower Availability risks Accidents Inventory carrying risk III. Reputation Risks These are risks arising from negative public opinion resulting from failures of process, strategy or corporate governance. The Reputation risks identified at this company are as follows Contamination-hygiene Product expiry/Shelf life Corporate Governance IV. Credit Risks Non receipt of receivables or delay in receipts is the credit risks attributable to the company. These may be identified as Payment risk from customers-local Payment risk from Customers- export Security from customers Advance to Suppliers V. Liquidity Risks The possibility is that the company will be unable to fund present and future financial obligations. These may be identified as Cash flow working capital management CAPEX decisions Cost overruns VI. Strategic Risks Risk those are arising from adverse business decisions or the improper implementation of such decisions. These may be identified as follows Business Plan forecasts. Attrition of key people. C. Risk Prioritizing and Impact Assessment Risk Prioritizing To adequately capture institutions risk exposure, risk measurement should represent aggregate exposure of the company to both risk type and business line and encompass short run as well as long run impact on it. To the maximum possible extent the company should establish systems / models that quantify their risk profile. However, in some risk categories, quantification is quite difficult and complex. Wherever it is not possible to quantify risks, qualitative measures should be adopted to capture those risks. The company should utilize a Risk Matrix to evaluate the level of risks which are identified in the Company. The Risk Matrix is formed by assessing the probability of the risk, the severity of the risk, and the quality of control that exists specific to those risks. Scoring is attributed for each the three parameters namely probability, severity and Internal control. The aggregate score is computed and ranking of the risks is ascertained. The probability of the impact occurring is arranged ranging from low to high. Scores assigned as 4 for High, 2 for medium and 1 for low. Severity of the Risk is assessed as High, Medium and low based on the experience and normal prudence. Scores assigned as 4 for High, 2 for medium and 1 for low. Quality of Internal control is also similarly categorized as high, medium and low. The scores assigned in the reverse order since the better the existing control the lower is the impact and vice-versa. So scores here can be assigned as 4 for Low, 2 for Medium and 1 for High. Aggregate Score was thereafter computed after adding the individual scores for each parameter. Companys Risk Matrix using the above method is shown in Annexure I ii. Impact Assessment The company being a medium scale manufacturing unit should focus on the manageable risks like Operational risks, Liquidity risks and Strategic risks. Market risks, Credit risks and Reputation risks though an integral part of risk management may not need detailed impact assessment at this stage unless the probability of such factors seem to be out of proportions in time to come. Impact assessment of the Operational risks, liquidity risks and strategic risks at the company termed herein as Manageable risks, can be assessed as follows Risk associated with any event has two components, loss severity and loss probability. Loss, in itself consists of expected and unexpected components. The unexpected loss component could be severe or catastrophic. Usually, expected losses are adjusted for in pricing or in reserve allocation. Unexpected losses require capital allocation. Given that operational risk, liquidity and strategic risk events are most often subject to internal control, any manageable risk system that passively measures these risks would clearly be inadequate. Once risk factors are identified as likely causes of the Risk losses, mitigating steps need to be initiated. While quantification would indicate risk magnitude and capital charges, it may not by itself suggest mitigating steps. This makes it advisable for the company to combine qualitative and quantitative approaches to manageable Risk. The broad steps involved here would be: determine the types of operational losses that could occur identify the causal risk factors estimate the size and likelihood of losses Mitigate associated risks Qualitative Approaches Qualitative approaches involve Audits, Self-assessments Expert / collective judgment. Critical Self-Assessment: (CSA): This is one of the common qualitative bottom-up approaches where line managers of the company can critically analyze their business processes given specific scenarios to identify potential risks and gaps in their risk management processes. Tools like questionnaires, checklists and workshops are used to help the managers analyze the risk profile of their business units. The key idea behind this method is that businesses managers of this company are in the best position identify and manage the Operational Risks pertaining to their business units. Risk Audit Employing the services of external (or internal) auditors to review the business processes of a business unit is another approach. This process not only helps identify risks but also helps put in place the oversight organization for the manageable risks. Key Risk Indicators (KRI) Using the KRI approach the company can blend the qualitative and quantitative aspects of Operational Risk management. Factors that have predictive value and that can be easily measured with minimum time lag can serve as risk indicators. Some risk indicators inherently carry risk related information, for instance, indicators like sales volumes, order size, etc. Others are indirect indicators, for instance, production budgets, production lifecycle, performance appraisal etc. Key indicators are identified from several potential factors and are tracked over time. The predictive capabilities of the indicators are tested through regression analysis on historical loss data and indicator measurements. Based on such analysis, the set of indicators of the company being tracked can be modified suitably. Over time, as the model gets refined, the set of indicators can provide early warning signals for operational losses. D. Management of the risks Managing Market Risks: The chocolate company may be exposed to Market Risk in variety of ways as described earlier such as environmental issues, export orders, future contracts, Price competition, customer profile and marine transportation risks. Besides, market risk may also arise from activities categorized as off-balance sheet item. Government Policy Risks: Change in government policies, tax rates, introduction of new tax regimes, reduction or abolition of incentives etc carry risk to any entity in terms of its costing and pricing. In the short and medium term the company does not perceive any major risk in this segment, however the management has to be aware of any forthcoming changes that the government might envisage. Should there be any drastic change in Government policies that would affect its profitability especially in case of exports; the Company has contingency plans for producing at an alternative location outside Oman. Product Risks: Since the product is that of food item the company has to be 100% careful to maintain the product quality, product specification, pack sizes, contents in each pack etc. Producing lesser or poor quality products and not as per specification is a risk which company X needs to constantly be aware off. To mitigate such risks the company X should develop a well defined production policy develop a well defined Quality control and checks policy develop a well defined storage and Distribution policy Environmental risks: The company does not use and generate hazardous substances in its manufacturing operations. Hence the chances that the company may in future are subject to liabilities relating to the investigation and clean-up of contaminated areas is negligible. However the company should have a laid down policy of disposal of waste at pre-designed disposal points mainly for the rejected, expired and damaged items of raw materials, finished products and packing materials. Volatility of export orders: Some customers and sectors served by the company are directly dependent on general economic development, competition and frequent fluctuations in demand for their products. The prices for these products are, in part, dependent on the prevailing relationship between supply and demand. Possible price fluctuations are therefore apt to have a direct influence on each customers working capital management decisions, with subsequent influence on the customers Order Intake. This may lead to volatility in the development of Order Intake of the company. The company has a policy of geographically diversifying its customer base, as also expanding the customer base in each export market, so that transfer to less volatile locations can be made in short notice. Price Competition in the local export market: The Company does business in very competitive local and export markets. In spite of the competition the company has a 70% market share in the local market and its export business is expanding.Both these local and export markets in which it competes are highly fragmented, with a few large, international manufacturers competing against each other and against a high number of smaller, local companies. Sometimes new entrants or existing players suddenly lower their prices to get rid of the companys products. This has, in some cases, adversely impacted sales margins realized by certain of companys products. To mitigate this risk the company has taken the following steps: Maintaining complete information of its Competitors with respect to their latest technological developments, market strategies, new investments, management changes etc. Has developed emergency alternative plans to introduce different product ranges with minimal structural changes with similar or lower prices. Currency fluctuation for export orders:The Company exports its products to a large number of countries like Canada, USA, Australia, African countries, and the Middle East. Almost all export orders of the company are fixed in US dollars. Since Omani Rail is pegged with US Dollars, the fluctuation of the currencies in would have negligible impact on the export realizations at company X. Company X has a policy of booking export orders in terms of US dollars to avoid the risk of currency fluctuations. Managing Operational Risks: Being a chocolate manufacturing company, it deals with the retail market. The most important risks are those of Operational risks. Operational risk is associated with human error, system failures and inadequate procedures and controls. It is the risk of loss arising from the potential that inadequate information system; technology failures, breaches in internal controls, fraud, unforeseen catastrophes, or other operational problems may result in unexpected losses or reputation problems. Fire Allied risks: These are general risks applicable to almost all establishments. This includes Material damage to the companys property due to Fire lightning, Earthquake, Third party impact, Accidental damage, explosion, riot strike, storm tempest, burst pipes, Own Vehicle impact, malicious damage, and theft. The company should take necessary steps in mitigating such risks by taking â€Å"Property All Risks Insurance Policy† â€Å"Loss of profit insurance cover† Machinery breakdown/ obsolescence: This risk identified is a major risk element as the company has been established two decades earlier by using imported refurbished Plant and machinery. Though most of the machinery is in running condition as of now the chances of spare part obsolescence is quite high in a majority of such machines. The physical status and the possible mitigation for major machinery can be shown in ANNEXTURE II Volatility of Raw Material/ Packing Material prices: The Company faces a medium level risk in its Raw material Packing material prices. The main raw materials at are Sugar, Glucose, Milk Powder, vegetable fat, coconut, coco whey powders. The packing material required is Wrappers, Bags, Gift boxes, Gift Tins and cartoons. Other than a few packing materials almost all of the raw materials and packing materials are imported as shown below Quality risk Raw material Packing material: This is a medium sized risk and the company should take reasonable care to mitigate such risks. Since the majority of the raw materials and packing materials are imported by the company, the purchase committee should implementing a stringent policy of Should have a multiple suppliers from the same country or region. Should have proper Quality checks for each Consignment while receiving delivery. Should have a stringent penalty clause on variation of specifications in the agreements with suppliers. Delivery risk of Suppliers: This is major risk element at the company because of the fact that in most cases purchases are imported and made through Letter of Credits. Non Delivery or delayed delivery in such purchases may affect the performance of the company. The company is implementing proper penalty clauses in the purchase agreement for delayed and/ or non-delivery of the ordered items. Transporting risks: In case of local sales, the company transports the products mostly through its own personnel. The company therefore, takes a general Transit Insurance policy covering accidents and theft. Inventory carrying risk: Inventory Carrying risks are of three types: Storage risk Overstocking under stocking risk Expiry risk Storage risk The storage policies currently are The company can keeps the entire inventory in closed warehouses. Over-stocking Under-stocking: The company can maintain a good optimized production planning system in correlation with its sales plan so that it can have a optimum stocking policy. The current production plan is quite satisfactory and hence the risk is low to medium. But the company is mostly dependent on Export market, the volatility of export orders may lead to overstocking or under-stocking of inventory. Expiry risks: This risk is low to medium. Expiry risks of inventory can be mitigated by proper planning of Sales, Purchase, Production and Distribution. The Storekeeper needs to maintain up-to-date records. A system is being implemented to provide on-line information about the stock position i.e. the quantity in stock, Re-order period, Ordering level and the Expiry dates of each of the Raw material, packing material and finished stocks to the Sales, Production and Purchase department so that immediate action can be taken by the respective departments. Manpower Availability risks: There is a shortage of skilled manpower in Oman. This is however met with the expatriate staff employed mainly from the sub-continent. The company therefore faces a medium risk in terms of availability of skilled manpower. The company can met unskilled manpower availability with the local Omani population and also from expatriate staff. The gap of skilled labor availability is likely to increase and therefore the costs also increase. To mitigate such risks, the company can develop long term strategy to invest in higher capacity production machines so that the requirement of manpower is kept low. Accidents: The Company can face a chance of accidents at the factory, however the accident risks at the company is low, as it does not deal with hazardous material and the production processes are not complex. However the company may face risks from mechanical or electrical installations which cant be entirely ruled out. So the company needs to take the following steps: By providing ELCB (Electric Leakage Circuit Breakers) in all electrical circuits and ACBs for the main transformers By providing Hot masks to the manpower Having a good machinery breakdown policy Constant monitoring of the gas line leakages The company needs have a Manpower Accidents and Injury Policy to cover the possibility of injury or death of manpower within the factory premises. Managing Reputation Risks Reputation of the company may also get hamper in various situations some of which are Contamination-hygiene: Being in the Food sector the company should take utmost precaution to avoid any sort of contamination in its products which will reach to the general mass. The company should take precaution for the quality of the raw material and packing material that is required for the entire production process and the stocking procedure. The company can follow the following policy: Stringent Quality control checks of Raw materials and packing materials Stringent Quality checks of the entire production process Maintaining Hygiene standards of the Government of Oman both in production and stocking. Sample testing at each stage Have a third Party damage policy insurance coverage owing to contamination Product expiry/Shelf life risks: This is again a very vital risk to the company as it is in the Food sector. The Government of Oman is very stringent in its laws to avoid expired products to be sold to the general public. So the company should take utmost care to avoid this risk by providing a stringent Distribution policy of its finished products Checks and controls before distribution of products. Monitoring distributed products on a daily basis Attributing Responsibility to a Senior Personnel for the management Corporate Governance: Corporate Governance Policies and Procedures manual are already in place at the company. Hence the risk associated with it is low. The management has to ensure proper compliance of the policies already undertaken to avoid any risk of reputation arising out of non-compliance of corporate governance. Managing Credit Risks: Credibility Risk of Customers: The Company should develop a credit policy based on regions, volume and credibility ranking of the parties. Export: The Company exports to a wide range of countries. The contacts of customers are mainly through visits and through mail. It is initially very difficult to assess the credibility of the customers abroad. The risk element is therefore medium and high. The company should mitigate this risk in the following manner: The company should back up the export orders by Letter of Credit from the parties. In case L/C mode is not practicable, the company can ask for advance payments or Security deposit, or post dated cheques which will cover the entire order taken prior to effecting delivery of the goods. The company currently did not enter into any distribution agreement with any export party and deals with parties on a case to case basis The Company can set up a network of distributors for handling exports sales as far as practicable. The company can also set up more than one distributor; in each region/country, so that price advantage can be achieved through minimal risk. The company should select distributors with proven track record, and the distributorship agreement should be through a internationally binding legal contract. Local: Local sales are affected by the company mainly to retail customers like supermarkets and hypermarkets, small shops and to two distributors in the interior. The company should take the following steps: Sale to all hypermarkets and supermarkets where the volumes are above a certain limit are, as far as possible, affected by means of an annual contract with all modalities and terms and conditions clearly laid out. For single shop outlets, the company may face the risk of shop closing down and non-payment or delayed payment. To counter this company should maintain small stocks with such shops and should have a regular but frequent collection system. In case of distributors the company should have legally binding distribution agreements. Limit setting: An important element of credit risk management is to establish exposure limits for each single customer and distributors. The compan

WTO Agreement on Agriculture India

WTO Agreement on Agriculture India Abstract: The possible welfare gains and likely beneficiaries for the facilitation of agricultural world trade formulated by the Agreement on Agriculture remains a matter of debate and concerns. Therefore the impact of the Agreement on Agriculture on production, price structure and trade in agricultural sector needs proper introspection and evaluation from Indian perspectives. The paper attempts to evaluate and analysed the impact of the agricultural reforms brought about by the Agreement on Agriculture on the Indian agricultural economy and its position in world trade. What is Agreement on Agriculture (AOA): The Agreement on Agriculture was formed on April 1994 at Marrakesh, Morocco as a part of the final Act of the Uruguay Round of multilateral trade negotiations which came into force on 1st Jan. 1995. This was a result of the long drawn talks on General agreement on Tariffs and Trade (GATT) aimed at opening up of International markets and also to reform world trade which was highly distorted. A major reason for the formation of the Agreement on Agriculture was the need to reduce excessive surplus production in agricultural sector in the global commodity markets during the 1980`s and early 1990`s. This was caused by the rising levels of support and protection in a number of developed countries as some of the largest agricultural exporters competed on the basis of their government`s ability to subsidised production and exports of agriculture while limiting access to their markets to keep out foreign agricultural products from their domestic markets. Therefore the core objective of AOA wa s to establish a fair and market oriented trading system which was to be implemented for a period of 6 years in developed countries and 9 years in developing countries. With this, agriculture was brought under the new rules of world trading system for the first time. There are 3 main features of the Agreement: Market Access Domestic support. Export subsidy. The market access required that tariffs for agricultural product fixed by individual countries be reduce to equivalent tariff in order to allow free trade and encourage liberalisation in world trade. Under this, the AOA required the conversion of all non tariff barriers into tariff barriers. This process was known as Tariffication. This was to be implemented for a period of 6 years for the developed countries and 10 years for the developing countries, least developed countries were exempted from undertaking such reductions. Domestic support was targeted to reduce the subsidies given by governments within their country for agricultural production and related activities. The total domestic support should be below the level of de minimis within a maximum period of 3 years for developed countries and 5 years for developing countries. This was to reduce price distortion and unfair competition in agricultural world trade. Export subsidy aims to reduce subsidies of export related to agricultural products and to ban the introduction of new subsidies. This aimed to protect small and marginal farmers in home countries especially in developing countries. Another highlight of the Agreement was the provision of special and differential treatment for the protection of the interest of the developing countries. In addition, there are provisions of Special Products and Sensitive Products, which are to be exempted from stringent discipline of the above provisions of tariffication process. Provision of Special Products designates a certain number of products of the developing countries that would be exempt from tariff reduction requirements and other disciplines in order to protect and promote food production, livelihood security and rural development worldwide. The idea was to protect the developing countries and least developed countries from unfair competition in world market and to create a world trading system where each individual country can come together and trade on equal footing without any discrimination and distortion by the more advantageous countries of the world. However, the possible welfare gains and likely beneficiaries for the facilitation of agricultural world trade formulated by the Agreement remains a matter of debate and concerns. Therefore the impact of the AOA on production, price structure and trade needs proper introspection and evaluation from Indian perspectives. The structure of the Agreement on Agriculture as it exists today seems to be slightly imbalanced, since it enables countries subsidising the agriculture sector heavily to retain a substantial portion of their subsidies up to the end of the implementation period while those countries which were not using these measures earlier are prohibited to use these measures in future beyond the de-minimis  [1]  limit. Therefore, ways to bring about more equity into the structure of the Agreement has to be sought. Indian Agricultural Economic scenario: Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self reliance. India`s foreign trade was subjected to import tariffs, export taxes and quantitative restrictions. So far it had followed an inward looking economic policy until the attempts to liberalise its economy. The Green revolution which was introduced in 1990`s further brought about reforms in agricultural sector and increase its production. This in a way opened the gate for participation in the world economy through the production of excess agricultural goods. Thus, India`s economy shifted from subsistence economy to production for exports in the world market. At present, Indian agriculture contributes to 24% of GDP, however agriculture exports accounts for less than 1% of world trade in agricultural commodities while a major share of the world`s exports are supplied by developed countries which accounts for around 64%. Impact of AOA on India: Indian agriculture is characterised by an overwhelming majority of small and marginal farmers holding less than two hectares of land, less than 35.7% of the land, is under any assured irrigation system. Farmers, therefore, require support in terms of development of infrastructure as well as extension of improved technologies and provisions of requisite inputs at reasonable cost. There is no doubt that during the last 30 years, Indian agriculture has grown at a reasonable pace, but with stagnant and declining net cropped area it is indeed going to be a difficult task to maintain the growth in agricultural production. The implications of the Agreement would thus have to be examined in the light of the food demand and supply situation. The size of the country, the level of overall development, balance of payments position, realistic future outlook for agricultural development, structure of land holdings etc. are the other relevant factors that would have a bearing on Indias trade policy in agriculture. Implications of the Agreement on Agriculture for India should thus be evaluated from the impact it will have on the following: i) Whether the Agreement has opened up markets and facilitated exports of products; and ii) Whether India would be able to continue with its domestic policy aimed at improving infrastructure and provision of inputs at subsidised prices for achieving increased agricultural production  [2]  . With India being under balance of payments, it has not undertaken any commitments under the Uruguay Round Agreement on Agriculture (AOA) which constrain it from following its developmental policy with regard to agriculture or which entail any action immediately. The only commitment India has undertaken is to bind its tariffs on primary agricultural products at 100%; processed foods at 150%; and edible oils at 300%  [3]  . However, it is needed to study the implications of removal of quantitative restrictions on market access, subsidy to farmers and tariffs on imports. One of the major impacts of the Agreement was that India has been maintaining Quantitative restrictions (QRs) on certain agricultural import products. Under the provision of the market access, such QRs will have to be eliminated latest by April 1st 2001. Immediate outcome was increased import of cheap and highly subsidized agricultural products which resulted in decline of domestic agricultural prices in India since 1999-2000. This adversely affected small and marginal farmers who resorted to selling off their agricultural lands to corporate and MNC`s at a very nominal prices. This further distorts domestic agriculture and rural structure of the economy that are mostly dependent on agriculture for survival. For example in Andhra Pradesh farmers were then hit by a crash in international prices, low rates of tariff applied on imports of commodities like edible oils, sugar, etc. and the removal of quantitative restrictions. Therefore a separate WTO cell was set up as these states felt that the central government were not doing enough to protect the interest of such states from the adverse impact of the Agreement. It aims to adapt state government policies to changing events and to influence future government negotiating positions. This clearly suggests that the AOA was more beneficial for the developed countries as it furthers opened up new market opportunities for them to exploit with their chea p agricultural products. However, It is also argued that with the opening up of world markets under the provision of Market access and the lifting of QRs on imports of certain agricultural products, prospects on exports have increased which lead to an increase in price of domestic agricultural commodities, this would mean that farmers would get benefits which in turn would encourage investment in the resource scarce agricultural sector. Also, with the decrease in production subsidies as well as export subsidies, the international prices of agricultural commodities will rise and this will help in making India`s exports more competitive in world market. Given the agro diversity of India, it has the potential to increase agro exports in a big way. A.V Ganesan  [4]  , suggested the idea of using the price incentive as a driving force to increase productivity as farmers are introduced to world markets there will be growing pressure from the farmers to gain higher prices for their produce and to narrow the gap between the domestic and external prices. Both the pattern of production and price expectations will increasingly be influenced by the demands and trends in world markets. Therefore, the price incentive could be used to give a strong boost to investment in agriculture as well as adoption of modern technologies and thereby to the raising of agricultural production and productivity. Furthermore, freedom to export agricultural products without restrictions will also need shedding the long-nurtured inhibition against their imports. Thus the Agreement on Agriculture is believed to provide a link between domestic reforms and international reforms by providing constraints that channel domestic policy change in the right direct ion. India had a history of food price inflation which makes it difficult to export agriculture processed products. The food price inflation was at the level of 11% during 1991-98, though the level has come down to 4.5% during 1998-2006  [5]  . Therefore, if increase in cheap imports further reduces the food price, it will not improve the condition of the farmers but instead their condition will deteriorate unless substantial gains are made through food based manufacturing export-enhancing strategies. However, with agriculture subsidies and export promotions, developed countries still continue to dominate the world agriculture market. More than 67 per cent of world food exports during 2001-03 originated from the high-income countries, while countries such as India where more than 65 per cent people survive on agriculture, contributed only 1.1 per cent of food exports. For example, In India, the dairy sector has been hit hard by subsidized exports from the EU. In 1999-2000 India import ed over 130,000 tonnes of EU skim milk powder. This was the result of EUR 5 million export subsidies that were provided to EU producers. EU subsidies to butter exports are also extortionately high. Consequently, butter oil import into India has grown at an average rate of 7.7% annually. This has had a dampening effect on prices of ghee in the domestic market. Ironically, India is the biggest producer of milk in the world. What is more worrying for India is that there are now signs of declining productivity growth for many agricultural products in India which will have severe implications for the majority of the population  [6]  . To ensure the welfare of our farmers from the affect of the lifting of Quantitative Restrictions, high import tariffs of commodities has to be maintained. The Agreement does not in any way constrained the ability to restrict the import of commodities since India has already reserved the right to impose high levels of import duties of 100%, 150% and 300% on primary products, processed products and edible oils respectively. Also due to India`s balance of payments (BOP) reasons certain products are allowed to remain under the QR`s category. With appropriate tariffication process, the adverse impact of such QRs can be rectified. In earlier years, a number of agricultural and horticultural products placed on the free list of imports have been brought to the peak rate to ensure adequate protection to Indian farmers. India has a negative total aggregate measure  [7]  (below 10%) of domestic support which implies that there is no compulsion to reduce tariff. India is under no obligation to reduce its domestic support. Also, India does not provide any export subsidies which requires reduction commitments under the export subsidy commitment. The Agreement on Agriculture lists several types of subsidies to which reduction commitments apply. However, such subsidies are virtually non-existent in India as exporters of agricultural commodities do not get direct subsidy. The Agreement allows unlimited support to activities such as (i) research, pest diseases control, training, extension, and advisory services; (ii) public stock holding for food security purposes; (iii) domestic food aid; and (iv) income insurance and food needs, relief from natural disasters and payments under the environmental assistance programmes. Moreover, investment subsidies given for development of agricultural infrastructure o r any kind of support given to low income and resource poor farmers are exempt from any commitments. Most of our major rural and agricultural development programmes are covered under these provisions. Therefore, the Agreement does not constrain our policies of investments in these areas. It is expected that reduction in domestic support and export subsidy by the developed countries will lead to a decrease in production in their countries and will eventually give scope for expansion of exports from the developing countries which will create a balanced export and import situation in the world trading system. India, with its cheap labor, diverse agro-climatic conditions and large agricultural sector can definitely gain through expansion of international trade in agricultural product. India`s agricultural exports have been growing since 1995and at present it is a net food exporter constituting greater share for exports in agriculture than manufactured exports. Therefore, India is likely to gain if the EU, the US, Japan and other major agriculture subsidisers significantly reduce their farm subsidies. For example, United States spent US$ 4 billion as subsidy to support its 25,000 cotton producers (US$160, 000 per producer) in 2003. It is also argued that in countries such as United States, subsidies are enjoyed by a selected few; mostly producing corn, wheat, cotton, soybean, and rice, while growers of 400 other crops hardly get any such subsidy. It would benefit India if other countries decrease tariffs to its farm exports on products such as cotton, basmati rice, fish or meat etc. However, the share of Indian exports in agriculture is sliding down as compared to manufacturing. These labour-intensive exports are expected to grow much faster and potential areas include textiles and food processing translating into benefits across a large group of farmers and contributing to stabilising their incomes. India has demonstrated comparative advantage in almost all the products it exports, and even in those products it imports. Therefore, India enjoys a large range of products where it could successfully enhance its capacity to export. The rural-urban divide is increasing steadily in India but India cannot resort to other balancing measures such as subsidy like the developed countries are doing. This is due to large population of India as majority of the population is dependent upon agriculture for livelihood. Therefore the solution for solving the rural-urban divide lies in large scale employment generation through industrialization and expansion of agriculture processing and exports. In the short term the Agreement on Agriculture may not affect India much because both its domestic support and export subsidy are negative I,e less than the minimal 10% in product specific domestic support. Moreover, the safeguards provided in the Agreement for the developing countries protect India from any major impact of liberalization of the world trade. However, in the long term, due to advantage of cheap labor that India enjoys, the cost of production are lower than any other countries, therefore in spite of its lower productivity as compared to the developed countries, the prices for agricultural product eg.as in the case of rice, tea, sunflower oil and cotton, will still remain lower than the world price. As a result, import to Indian markets will not be attractive as the domestic market prices in such products remain lower than the international standard. Hence, the impact of large scale imports due to liberalization of the world economy will not be much. Doha Ministerial conference and the deadlock: The Uruguay Round of AOA had a built in provision for review and renewal of its policy to consider not just increased trade but also such objectives as food security, diversified rural development and the reduction of inequalities between developed countries and developing countries and the least developed countries. In general, to assess in-depth the effects of the URAA on trade, on agricultural policy and on protection levels. This was to be decided at the next round of multilateral talk to be held at the fourth WTO ministerial conference in Doha, Nov. 2001 which was targeted to be completed by Jan. 2005. India`s stand at the conference included Non trade concerns which include food security and environmental protection. India is particularly concern with food security which includes not only adequate supply of food but also stability in its supply. India was of the stand that no profound change has been made in subsidy position of the developed countries even after the agreement. When the AoA was introduced in Uruguay there were so many expectations however the results failed to reach the expectations of many countries. In the Doha round, the concerns of the developing countries and the developed countries differed. The developing countries wanted to focus only on the implementation (or non implementations) and review of the Uruguay agreement. Developed countries perspective, however, was for new issues ( eg :Singapore issues), viz, investment, competition, trade facilitation and transparency in government procurement, besides environment and internationally recognised core labour standards. The Doha round clearly shows that India`s interest in the negotiation remain at variance from the interest of the least developed countries as India has a much more favourable agricultural condition than any of these countries. Many of these countries are net importers of food and the subsidy in the exporting countries makes them better off. Moreover, under the Everything But Arms (EBA) initiative of the European Union, the LDCs have quota and duty-free access to the EU market, a facility that was never available to India. Also, India depends highly on its service sector industry; therefore, the situation has become highly tense for India, particularly in view of the fact that the developed countries have managed to link agriculture subsidy with the market access in services and industry. If the European Union needs to do more on agricultural tariffs, and the US needs to do more on reducing agricultural subsidies, then India also needed to do more on industrial tariffs. This is a tr icky situation for India. The Doha Development Round of trade talks was targeted to be concluded by January 2005. However, the progress thereafter has hardly been in the positive direction. There was a deadlock of Doha Ministerial conference and it was left for further work and resulting negotiations. The reason for the failure of the negotiations mostly falls on the role of the United States, which departed from Cairns group and joined EU, the later having too ambitious agenda on including investment and competition. Countries like Australia, New Zealand and Canada (of Cairns Group) favour a totally market oriented approach and oppose trade distorting subsidies and protectionist regimes of EU and Japan. While EU remained against fast track approached to liberalization. Developing countries like India, Pakistan, Sri Lanka, ASEAN etc highlight significance of role of agriculture in their economies and seek to preserve domestic policy flexibility to guard food security concerns. Overall assessment: In India, more than half of the population is still dependent upon agriculture for subsistence even after governments continued attempt to bring about increase in industrialization and technological advancement. Therefore, agriculture remain a core importance for the sustenance of the population and also constitute a major share in the countrys economy. Agricultural self reliance forms a vital underpinning for the growth of the GDP of any agrarian developing economies since good agricultural production provides purchasing power to a large majority of a population, which in turn spurts industrial growth. Self-sufficiency in food production has, therefore, specific developmental perspective as opposed to a purely commercial perspective. Hence, it is important that the developing countries like India need to be provided with the requisite flexibility within the AOA to pursue their legitimate non-trade concerns of food security. More specifically, developing countries need to be allowed to provide domestic support in the agricultural sector to meet the challenges of food security and to be able to maintain the need of rural employment. Investment in Indian agriculture has been declining for quite some years. In the context of international trade, there is an added urgency to reverse this trend and increase investment in research, integrated market development, storage and ware-housing facilities, road development, creation of facilities for efficient and quicker transport and development of scientific systems of standard setting and grading. Public expenditure on research and technology, infrastructure creation and rural development will raise Indias AMS. More importantly, up-to-date information on domestic and international prices and demand should be made available to farmers through various awareness programmes and training. India also need to raise the quality of agricultural products to internationally accepted standards, i e, those of the Codex Alimentarius Commission (for food additives, veterinary drug and pesticide residues, contaminants, methods of analysis and sampling, and codes and guidelines of hygien ic practice). The AOA is criticised on being insensitive to human development or improving standards of living, and being too insistent on liberalization. The model of agricultural trade liberalization promoted by the AOA also encourages industrialized and export-oriented agricultural production, favouring trans national commodity traders and processors over small-scale farmers thus in spite of all the provisions provided under the Agreement, it is further attacked on not taking into consideration the problems faced by the small and marginal farmers. The success of the agreement to a certain extent also depends on how far the developed countries are willing and committed to the cause of helping the developing countries for development through a process of fair and unrestricted trade in agriculture. It is also argued that the agreement did little to liberalised trade and to improve market access and reduce protection as protection in many countries remain very high and allowable export subsidies st ill threaten the stability of world markets. Conclusion: Global agricultural policies affect many economies in a similar way. Developing countries may be more vulnerable to distortions and changes in global trading policies in the agricultural sector, but they also determine the implications of agricultural trade liberalisation in some countries. Vulnerability of countries arising from global policies and trade liberalisation agenda maybe inherent to their economy such as; Strong dependence on agriculture for income, employment and foreign exchange earnings, heavy dependence on food imports and food aid and relatively high degree of sector openness. These conditions may render a countrys economies vulnerable to trends and instability levels of world agricultural prices, long term changes with respect to access barriers to exports markets and global policies affecting the competitiveness of imports in domestic markets. With liberalisation of agricultural sector much priority is been given for increasing international trade which is no subst itute for inducing a domestically oriented agricultural growth. Indeed most food is produced for local consumption in developing countries and only a small proportion is traded internationally, which means that a solely trade-oriented approach has little relevance for many developing countries. Therefore agricultural reforms in International trading system like the AOA may not have much impact on a countrys economic growth particularly the developing countries if the reforms are implemented without proper analysis of own countrys economic strategic position. Since agriculture constitute the major share of many developing economies, the implementation of such reforms and also the participation in world trade without proper precautionary measures may result in crisis which such developing countries may not afford. Therefore, it is necessary to build up a strong domestic market scenario which is in line with external prices, with appropriate policies to ensure the protection of their e conomies from the unnecessary and unfair competition in world markets. However, if such reforms are disciplined in its implementation and also each country is serious enough to make such commitments for the welfare of the world trading system, it might lead to a balanced and equal world markets. This would in a way solve the problems of poverty, inequalities and lead to increased productivity and improve the standard of living of the world population.