1.

Foreign Direct Investment is a controlling ownership in a business enterprise in one cou

in another country.

Foreign direct investment is distinguished from portfolio foreign investment, a passive inves
of another country such as public stocks and bonds, by the element of "control. According
"Standard definitions of control use the internationally agreed 10 percent threshold of votin
grey area as often a smaller block of shares will give control in widely held companies
technology, management, even crucial inputs can confer de facto control."

The origin of the investment does not impact the definition as an FDI, i.e., the investmen
"inorganically" by buying a company in the target country or "organically" by expanding op
business in that country.
Types
Horizontal FDI arises when a firm duplicates its home country-based
activities at the same value chain stage in a host country through FDI.
Platform FDI Foreign direct investment from a source country into a
destination country for the purpose of exporting to a third country.
Vertical FDI takes place when a firm through FDI moves upstream or
downstream in different value chains i.e., when firms perform valueadding activities stage by stage in a vertical fashion in a host country.
Methods
The foreign direct investor may acquire voting power of an enterprise in an
economy through any of the following methods:
by incorporating a wholly owned subsidiary or company anywhere
by acquiring shares in an associated enterprise
through a merger or an acquisition of an unrelated enterprise
Participating in an equity joint venture with another investor or
enterprise.
India

Foreign investment was introduced in 1991 under Foreign Exchange Management Act (F
finance minister Manmohan Singh. As Singh subsequently became the prime minister, this h
political problems, even in the current times. India disallowed overseas corporate bodi
India. India imposes cap on equity holding by foreign investors in various
in aviation and insurance sectors is limited to a maximum of 49%.

Starting from a baseline of less than $1 billion in 1990, a 2012 UNCTAD survey projected In
important FDI destination (after China) for transnational corporations during 20102012. As p
that attracted higher inflows were services, telecommunication, construction activities and

hardware. Mauritius, Singapore, US and UK were among the leading sources of FDI. Based on
were $10.4 billion, a drop of 43% from the first half of the last year.

Nine from 10 largest foreign companies investing in India(from April 2000- January
Mauritius . List of the ten largest foreign companies investing in India(from April 2000follows -1. TMI Mauritius Ltd. ->Rs 7294 crore/$1600 million
2. Cairn UK Holding -> Rs6663 crores/$1492 million
3. Oracle Global (Mauritius) Ltd. -> Rs 4805 crore/$1083 million
4. Mauritius Debt Management Ltd.-> Rs 3800 crore/$956 million
5. Vodafone Mauritius Ltd. Rs 3268 crore/$801 million
6. Etisalat Mauritius Ltd. Rs 3228 crore
7. CMP Asia Ltd. Rs 2638.25 crore/$653.74 million
8. Oracle Global Mauritius Ltd. Rs 2578.88 crore / $563.94 million
9. Merrill Lynch(Mauritius) Ltd. Rs 2230.02 crore / $483.55 million
10.
Name of the company not given (but the Indian company which
got the FDI is Dhabol Power company Ltd.)
2.A bill of lading (sometimes abbreviated as B/L or BoL) is a document
issued by a carrier which details a shipment of merchandise and gives title of
that shipment to a specified party. Bills of lading are one of three important
documents
used
in international
trade to
help
guarantee
that exporters receive
payment
and importers receive
merchandise.
A straight bill of lading is used when payment has been made in advance of
shipment and requires a carrier to deliver the merchandise to the
appropriate party. An order bill of lading is used when shipping merchandise
prior to payment, requiring a carrier to deliver the merchandise to the
importer, and at the endorsement of the exporter the carrier may transfer
title to the importer. Endorsed order bills of lading can be traded as
a security or serve as collateral against debtobligations.[2]
Name
The word "lading" means "loading", both words being derived from the Old English
specifically refers to the loading of cargo aboard a ship.
Description

A bill of lading is a standard-form document. It is transferable by endorsement (or by lawful

and is a receipt from shipping company regarding the number of packages with a particula
and a contract for the transportation of same to a port of destination mentioned therein. [4] In
Gladstone, Lord Justice Blackburn defined a Bill of Lading as "A writing signed on behalf
which goods are embarked, acknowledging the receipt of the Goods, and undertaking to del

the voyage, subject to such conditions as may be mentioned in the bill of lading." A bill of la
used in the transport of goods. As a document of title, it is also an important financial instrum

A bill of lading is a document generated by a shipping line or its agent, giving details of a sh
Alongside this principal purpose, the bill of lading also certifies that the goods have been sh
(and in some cases certifies the condition of the goods at the point of loading), assigns
requires the carrier to release the merchandise to the holder of the title or a named party at t
History
While there is evidence of the existence of receipts for goods loaded aboard
merchant vessels stretching back as far as Roman times,[5]and the practice of
recording cargo aboard ship in the ship's log is almost as long-lived as
shipping itself, the modern Bill of Lading only came into use with the growth
of international trade in the medieval world.

The growth of mercantilism (which produced other financial innovations such as the c
partita), the bill of exchangeand the Insurance policy[6]) produced a requirement for a title d
traded in much the same way as the goods themselves. It was this new avenue of trade th
Lading in much the same form as we know today.

Codified provisions on bills of lading may be found in the 1924 Hague Rules, the 1968 and 1
and the Hamburg Rules.

Although the term "bill of lading" is well-known and well-understood, it may become obsolete
the Rotterdam Rules create the new term "transport document"; but (assuming the Rotte
force) it remains to be seen whether shippers, carriers and "maritime performing parties" (a
Rules coinage) will abandon the familiar term "bill of lading".
Types of Bills of Lading

Bills of lading have a number of additional attributes, such as on-board, and received-for-ship
of lading denotes that merchandise has been physically loaded onto a shipping vessel, such
plane. A received-for-shipment bill of lading denotes that merchandise has been received, b
have already been loaded onto a shipping vessel. Such bills can be converted upon being load
"Claused" Bills of Lading

A bill of lading that denotes that merchandise is in good condition upon being received by
referred to as a "clean" bill of lading, while a bill of lading that denotes that merchandise has
to being received by the shipping carrier would be known as a foul or "claused" bill of lading.

will have a statement (clause) written onto the bill of lading noting down any damage or
credit usually will not allow for foul bills of lading.

3. European Union

The European Union (EU) is a politico-economic union of 28 member states that are located
[13]
The EU operates through a system of supranational institutions and intergovernmental n
the member states.[14][15]The institutions are: the European Commission, the Council of
the European Council, the Court of Justice of the European Union, the European Central Bank
and the European Parliament. The European Parliament is elected every five years by EU citiz

The EU traces its origins from the European Coal and Steel Community (ECSC) and t
Community (EEC), formed by the Inner Six countries in 1951 and 1958, respectively. In the
community and its successors have grown in size by the accession of new member state
addition of policy areas to its remit. The Maastricht Treaty established the European Union un
1993 and introduced the European Citizenship.[16] The latest major amendment to the constit
the Treaty of Lisbon, came into force in 2009.

The EU has developed a single market through a standardised system of laws that apply
Within theSchengen Area, passport controls have been abolished. [17] EU policies aim to ensur
people, goods, services, and capital,[18] enact legislation in justice and home affairs, and ma
on trade,[19] agriculture,[20]fisheries, and regional development.[21]

The monetary union was established in 1999 and came into full force in 2002. It is curr
member states that use the euro as their legal tender. Through the Common Foreign and Sec
developed a role in external relations and defence. The union maintains permanent diploma
the world and represents itself at theUnited Nations, the WTO, the G8, and the G-20.

With a combined population of over 500 million inhabitants,[22] or 7.3% of the world popula
generated a nominal gross domestic product (GDP) of 16.584 trillion US dollars, constituting
global nominal GDP and 20% when measured in terms of purchasing power parity. If it were a
come first in nominal GDP and second in GDP (PPP) in the world. [24] Additionally, 26 out of 2
very high Human Development Index, according to the UNDP. In 2012, the EU was awarded th
History
After World War II, moves towards European integration were seen by many as
an escape from the extreme forms of nationalism that had devastated the
continent.[26]
The 1948 Hague Congress was a pivotal moment in European federal history, as
it led to the creation of theEuropean Movement International and also of

the College of Europe, a place where Europe's future leaders would live and
study together.[27]
1952 saw the creation of the European Coal and Steel Community, which was
declared to be "a first step in the federation of Europe", starting with the aim of
eliminating the possibility of further wars between its member states by means
of pooling the national heavy industries. [28] The founding members of the
Community were Belgium, France, Italy, Luxembourg, the Netherlands, and West
Germany. The originators and supporters of the Community include Alcide De
Gasperi, Jean Monnet, Robert Schuman, and Paul-Henri Spaak.[29]

In 1957, the six countries signed the Treaty of Rome, which extended the earlier co-operati
Coal and Steel Community (ECSC) and created theEuropean Economic Community (EEC),
union. They also signed another treaty on the same day creating the European Atomic Energy
for co-operation in developing nuclear energy. Both treaties came into force in 1958.

In 1973, the Communities enlarged to include Denmark (including Greenland, which later
1985, following a dispute over fishing rights), Ireland, and the United Kingdom.[35] Norway ha
the same time, but Norwegian voters rejected membership in a referendum.
In 1979, the first direct, democratic elections to the European Parliament were held.[36]

Greece joined in 1981; Portugal and Spain in 1986.[37] In 1985, the Schengen Agreement le
creation of open borders without passport controls between most member states and some n

In 1986, the European flag began to be used by the Community[39] and the Single European A

In 1990, after the fall of the Eastern Bloc, the former East Germany became part of the
a reunited Germany.[40] With further enlargement planned for former communist sta
the Copenhagen criteria for candidate members to join the EU were agreed upon in June 1993

The European Union was formally established when the Maastricht Treatywhose main
Kohl and Franois Mitterrandcame into force on 1 November 1993. [16] The treaty also ga
community to the EEC, even if it was referred as such before the treaty.

In 1995, Austria, Finland, and Sweden joined the EU. In 2002, euro banknotes and coins repla
in 12 of the member states. Since then, the eurozone has increased to encompass 19 countri

In
2004,
the
EU
saw its
biggest
enlargement
to
date when
Republic, Estonia, Hungary, Latvia, Lithuania,Malta, Poland, Slovakia, and Slovenia joined the

On 1 January 2007, Romania and Bulgaria became EU members. In the same year, Slov
[41]
followed in 2008 by Cyprus and Malta, by Slovakia in 2009, by Estonia in 2011, b

by Lithuania in 2015. In June 2009, the European Parliament elections were held, leading
Commission, and by July, Iceland formally applied for EU membership, but has since suspende

On 1 December 2009, the Lisbon Treaty entered into force and reformed many aspects of
changed the legal structure of the European Union, merging the EU three pillars system in
provisioned with a legal personality, created a permanent President of the European Cou
was Herman Van Rompuy, and strengthened the High Representative,Catherine Ashton.[42]

In 2012 the Union received the Nobel Peace Prize for having "contributed to the advan
reconciliation, democracy, and human rights in Europe." [43][44] On 1 July 2013, Croatia became
Legal system

The EU is based on a series of treaties. These first established the European Community and
amendments to those founding treaties.[102] These are power-giving treaties which set b
establish institutions with the necessary legal powers to implement those goals. These le
ability to enact legislation[f] which can directly affect all member states and their inhabita
personality, with the right to sign agreements and international treaties.[103]

Under the principle of supremacy, national courts are required to enforce the treaties that the
ratified, and thus the laws enacted under them, even if doing so requires them to ignore c
and (within limits) even constitutional provisions.

4.Most favoured nation

In international economic relations and international politics, "most favoured nation" (MFN
treatment accorded by one state to another in international trade. The term means the
recipient of this treatment must, nominally, receive equal trade advantages as the "most f
country granting such treatment. (Trade advantages include low tariffs or high import quota
that has been accorded MFN status may not be treated less advantageously than any other c
by the promising country. There is a debate in legal circles whether MFN clauses
treaties include only substantive rules or also procedural protections.[1]

The members of the World Trade Organization (WTO) agree to accord MFN status to each oth
preferential treatment of developing countries, regionalfree trade areas and customs unio
principle of national treatment, MFN is one of the cornerstones of WTO trade law.

"Most favoured nation" relationships extend reciprocal bilateral relationships following both G
reciprocity and non-discrimination. In bilateral reciprocal relationships a particular privilege
only extends to other parties who reciprocate that privilege, while in a multilateral reciproca

privilege would be extended to the group that negotiated a particular privilege. The non-dis
of the GATT/WTO applies a reciprocally negotiated privilege to all members of the GATT/WTO
status in negotiating the privilege.
History

The earliest form of the most favoured nation status can be found as early as in the 11th cen
the most favoured nation status starts to appear in the 18th century, which is when the div
unconditional most favoured nation status also began. [3] In the early days of international
nation" status was usually used on a dual-party, state-to-state basis. A nation could enter
nation" treaty with another nation. With the Jay Treaty in 1794, the US granted "most favoure
to Britain.

After World War II, tariff and trade agreements were negotiated simultaneously by all inte
the General Agreement on Tariffs and Trade (GATT), which ultimately resulted in the World
1994. The World Trade Organization requires members to grant one another "most favoured
favoured nation" clause is also included in the majority of the numerous bilateral investm
between capital exporting and capital importing countries after theSecond World War.[c\
Exceptions

GATT members recognized in principle that the "most favoured nation" rule should be relaxe
needs of developing countries, and the UN Conference on Trade and Development (establish
to extend preferential treatment to the exports of the developing countries.[4]:fol.93

Another challenge to the "most favoured nation" principle has been posed by region
the European Union and the North American Free Trade Agreement(NAFTA), which have lowe
among the members while maintaining tariff walls between member nations and the re
agreements usually allow for exceptions to allow for regional economic integration
In contract law

A most favoured nation clause (also called a most favoured customer clause or mo
clause) is a contract provision in which a seller (or licensor) agrees to give the buyer (or lice
makes available to any other buyer (or licensee). In some contexts, the use of such
commonplace, such as when online ebook retailers contract with publishers for the supply of
clauses, in some contexts, may provoke concerns about anticompetitive influences and antit
other contexts, the influence may be viewed as procompetitive.[12]

One example where most favoured nation clauses may appear is in institutional investm
where if a certain number of conditions are met, one client may be entitled to the lowest fee
with a substantially identical investment strategy and the same or lower level of assets under

5. Dumping (pricing policy)

In economics, "dumping" is a kind of predatory pricing, especially in the context
of international trade. It occurs when manufacturers export a product to another
country at a price either below the price charged in its home market or below its
cost of production.
Overview[edit]

A standard technical definition of dumping is the act of charging a lower price for the like go
than one charges for the same good in a domestic market for consumption in the home mark
is often referred to as selling at less than "normal value" on the same level of trade in the or
Under the World Trade Organization (WTO) Agreement, dumping is condemned (but is not pr
threatens to cause material injury to a domestic industry in the importing country.[1]

The term has a negative connotation, as advocates of competitive markets see "du
protectionism. Furthermore, advocates for workers and laborers believe that safeguardi
predatory practices, such as dumping, help alleviate some of the harsher consequences of s
economies at different stages of development (see protectionism). The Bolkestein direct
accused in Europe of being a form of "social dumping," as it favored competition between wo
the Polish Plumber stereotype. While there are few examples of a national scale dump
producing a national-level monopoly, there are several examples of local 'dumping' that p
regional markets for certain industries. Ron Chernow points to the example of regional oil m
Life of John D. Rockefeller, Sr. where Rockefeller receives a message from Colonel Thompson
strategy where oil in one market, Cincinnati, would be sold at or below cost to drive compet
force them to exit the market. In another area where other independent businesses were alre
in Chicago, prices would be increased by a quarter.[2]
Anti-dumping actions
Legal issues

If a company exports a product at a price that is lower than the price it normally charges in it
sells at a price that does not meet its full cost of production, it is said to be "dumping" the pro

the various forms of price discrimination and is classified as third-degree price discriminatio
whether or not such practice constitutes unfair competition, but many governments take act
protect domestic industry. The WTO agreement does not pass judgment. Its focus is on ho
cannot react to dumpingit disciplines anti-dumping actions, and it is often called the "ant
(This focus only on the reaction to dumping contrasts with the approach of the subsid
measures agreement.)

The legal definitions are more precise, but broadly speaking, the WTO agreement allows gove
dumping where there is genuine ("material") injury to the competing domestic industry. To
has to show that dumping is taking place, calculate the extent of dumping (how much lo
compared to the exporters home market price), and show that the dumping is causing i
cause injury.
Definitions and extent

While permitted by the WTO, General Agreement on Tariffs and Trade (GATT) (Article VI) allo
of taking action against dumping. The Anti-Dumping Agreement clarifies and expands Article
together. They allow countries to act in a way that would normally break the GATT principles
not discriminating between trading partnerstypically anti-dumping action means charging e
particular product from the particular exporting country in order to bring its price closer to th
remove the injury to domestic industry in the importing country.

There are many different ways of calculating whether a particular product is being dumped
The agreement narrows down the range of possible options. It provides three methods to
normal value. The main one is based on the price in the exporters domestic market. Whe
two alternatives are availablethe price charged by the exporter in another country, or a ca
combination of the exporters production costs, other expenses and normal profit margins. A
specifies how a fair comparison can be made between the export price and what would be a n

6. Secure Electronic Transaction

Secure
Electronic
Transaction (SET)
was
a communications
protocol standard
card transactions over insecure networks, specifically, the Internet. SET was not itself a paym
a set of security protocols and formats that enabled users to employ the existing credit card
on an open network in a secure fashion. However, it failed to gain attraction in the mark
the 3-D Secure scheme.

History and development

SET was developed by the SET Consortium, established in 1996 by VISA and Mas
with GTE, IBM, Microsoft, Netscape, SAIC, Terisa Systems, RSA, andVeriSign.[1] The consortium
the card associations' similar but incompatible protocols (STT from Visa/Microsoft and SEPP
into a single standard.

The first review draft of the protocol was published February 1996 and the v1.0 standard docu
May 1997. Although there were several attempts to update or revise the protocol, no officia
beyond 1.0.[2] An official reference implementation developed by Terisa Systems was announc

In December 1997 Visa and MasterCard created an independent company, SET Secure
LLC (a.k.a. SETco), announcing American Express and JCB as cooperating members.
development and deployment of the protocol and was responsible for branding and cert
informal interoperability testing among vendors occurred during 1997. [4] Formal pilot tests b
were reportedly problematic.[5]

SET allowed parties to identify themselves to each other and exchange information secure
was based on X.509 certificates with several extensions.[6] SET used a cryptographic blin
effect, would have let merchants substitute a certificate for a user's credit-card number.
merchant itself would never have had to know the credit-card numbers being sent from the b
provided verified good payment but protected customers and credit companies from fraud.

SET was intended to become the de facto standard payment method on the Internet betwe
buyers, and the credit-card companies. Despite heavy publicity to win market share, it failed t
Reasons for this include:

Network effect - need to install client software (an e-wallet).

Cost and complexity for merchants to offer support, contrasted with
the comparatively low cost and simplicity of the existing SSL based
alternative.
Client-side certificate distribution logistics.

Key features
To meet the business requirements, SET incorporates the following features:

Confidentiality of information

Integrity of data

Cardholder account authentication

Merchant authentication