FOR THE PAST half century, the U.S. dollar has served as the world's preeminent international currency, thwart-ing challenges from several other currencies in the proc-ess.

In the early post–World War II period, the pound sterling provided some competition to the dollar, while in the 1980s the increased use of the deutsche mark and the Japanese yen led to speculation that the international monetary system was becoming a tripolar currency re-gime. By the early 1990s, however, the international use of the deutsche mark and yen stabilized at modest levels and expectations of a tripolar regime subsided.During the past few years, there has been increasing speculation that the international monetary

Mr. Dabir AlamMarketing ProfessionalBesem International (Saudi Arabia)

1. Sir, you have worked in freight and Logistics with Dachser India and now with Basem International Shipping and Logistics, what are the dif-ferences in functions and challenges for marketing personnel for the dif-ferent industry?Ans: Well the Logistics functions are same everywhere but in terms of the challenges; it differs with the demographic change, it also depend on which firm you are working for, and what are the strength of the company, back in India, the company which

“US, one of the greatest advocate of freedom of speech is in itself, one of the greatest violator of freedom of people”

Every historical moment is headlined by a handful of individu-als from whom the abuse of power and authority elicits extraor-dinary acts of courage. In blowing the whistle on the deliberate and unprovoked misconduct of governments — be it lying to citizens, intruding on their private affairs, or colluding with vested interests —these figures set aside their personal concerns for the greater public good. As Daniel Ellsberg, Bradley Manning, Shan-mugham Manjunath and Satyendra Dubey all found out, whis-tleblowers run the risk of persecution, solitary confinement, harassment, and even death.

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IN THIS ISSUE:US GOVERNMENT’s DEFICIENCY……..……….,……….1

DOLLAR VS RUPEE…………………..………….....1

ALUMNI INSIGHT: ……………………………….1

QUOTE FOR THE MONTH…………………. ………..4

Volume 2 , Issue 2 | July 2013

Masters of International Business , Centre for management Studies ,JAMIA MILLIA ISLAMIA

Alumni Insight

Dollar VS Rupee Cont….on Page 4

Cont….on Page 3

DOING BUSINESS IS NOT SO EASY: WORLD BANK……….. .2

US Government’s Deficiency

system was becoming a tripolar cur-rency regime. By the early 1990s, how-

ever, the international use of the deutsche mark and yen stabilized at modest levels and expectations of a tripolar regime subsided. During the past few years, there has been increasing speculation that the international monetary system may become bipolar, with the dollar sharing the spotlight with a currency that has yet to come into existence—the euro.

Due to European financial crisis the value of Rupee has been de-preciated which has resulted in an increase in the value of dollar thus, affecting the economy. The demand of dollar has increased in contrast to that of Rupee and has startled our economy. It has resulted in the depreciation of the Purchasing Power Parity (PPP). Depreciation of Indian Rupee has resulted in increase in inflation and thus, stagnant growth of the economy. Dollar is being appreciated amongst all the currencies including Rupee and has marked an increase in its buyers. These frail-ties and volatility among the European market is sure to have an impact in the entire Asian mar-kets including India. Government would have to pay more in terms of Rupee for its imports. This would lead to rise in fiscal deficit which in turn will raise the level of inflation.

The continuous fall in the rupees can be attrib-uted to the mounting large current account defi-cit which have been due to India’s rising im-ports of petroleum and crude oil , semi precious stones , gold and coal which is used for the pro-duction of power. With the rupee losing value against the dollar the cost of imports will go up.

Companies which had borrowed in dollars and have not insured themselves against the fall of the rupee will have to pay more .There will be a decline in the profitability of all those enterprises that have bor-rowed heavily in foreign currency and have not insured them-selves against a rupee decline (unhedged borrowing).This cost will manifest itself in reduced investment by these companies and hence lower aggregate growth; it will also manifest itself (eventually) in a worsened fiscal situation because the government will have to support these companies directly or the banks that have lent to them .

While the exporters will gain from the depreciation of Rupee as they get more of the local currency in exchange of the foreign one.The depreciating value of Rupee is like a boon to Indian IT sectors as it generates more than 80% of their revenue from

The Fortune 500 is an annual list of the largest corporations in the US, based on their gross revenue. The list was first published in 1955, giving a snapshot of America's commercial progress, where the money has gone and how it's moved to new indus-tries over time.The current list was published on July 9, 2013 – ranking companies by their total revenues for the respective fiscal years ended on or before March 31, 2013. The revenue figures include consolidated subsidiaries and reported revenues from discon-tinued operations, but exclude excise taxes.Notably, the financial sector showed the highest growth in profits year-over-year at 33.5 percent – demonstrating the gradual recovery from the 2008 financial crisis. Meanwhile energy companies continue to dominate the list (making up four out of the top ten), though they have seen their profits decline by 6.7 percent this year.Check out the 2013 list of the Fortune 500's top 10 companies.

Source: Fortune 500, July 2013

overseas market and this will enhance their actual realization of revenue. Emigrants living outside India will also benefits from this depreciation.

Depreciation in the Indian currency, which fell to a life-time low of 60.26 against the dollar, could lead to rise in input costs for handset makers who see their margins eroded by the fall and could be forced to pass on the burden to the consumer, in case the situation persists. The weakening of the Rupee against the US dollar will pinch margins of the middle and low tier mobile mak-ers, as most of them import devices or their parts and this could lead to a rise in their input costs.

There is really a disadvantage for mid-tier and low-tier handsets makers who are importing into India because at that level the price sensitivity to the device price is very high and with the recent de-preciation of the rupee that is having a direct im-pact on retail prices of imported handsets . At low and mid-tier, it's likely to have an impact on sales because of the elasticity of demand at that level.

RBI responded with timely interventions by sell-ing dollars intermittently. But in times of global uncertainty, investors prefer USD as a safe haven. To attract investments, RBI can ease capital con-trols by increasing the FII limit on investment in government and corporate debt instruments and introduce higher ceilings in ECB’s. Government can create a stable political and economic envi-ronment. However, a lot depends on the Global economic outlook and the future of Eurozone which will determine the future of INR.

By-Avneet Kaur MIB 2 year

CMS, JMI

Page 2

Dollar VS Rupee

Cont…..from Page 1

THE LARGEST COMPANIES IN THE USA Rank Company

Revenue($million)

Profit($million)

1 Wal-Mart Stores 469,162 16,999

2 Exxon Mobil 449,886 44,880

3 Chevron 233,899 26,179

4 Phillips 66 428,167 4,124

5 Berkshire Hathaway 162,463 14,824

6 Apple 156,508 41,733

7 General Motors 152,256 6,188

8 General Electric 265,702 13,641

9 Valero Energy 138,286 2,083

10 Ford Motor 134,252 5,665

I was working for is strong in the Air Freight Shipments Export and Imports both, so as a marketing professional bringing the Air freight Business to the company was like bread and butter, where as the challenge was to develop the market for the ocean Ex-port/Import business. Similarly when I joined another company, Basem International in Saudi Arabia, their strength is in the Ocean Export business. Utilizing the strength of the company you are working for is the key to grow in the Sales and Marketing profession.2. What have been the recent trends in Logistics practice?Ans: Observing the recent trends we can say that the implementation of the new information related technologies have developed rapidly keeping customers in mind to fulfill their demands, these new trends are; Electronic Data Interchange (EDI), Global Positioning System (GPS) and Decision Support System (DSS). These technologies are greatly enhancing the operation and Planning Capability of freight carriers, and as a result of these changes, the logistics industries recognized the importance of these technologies in order to enhance its capability to respond to the needs and requirement of its customers. These changes also led to free trade agreements between countries over wide geographical regions, and resulted in increased demand for elec-tronic trade and specialized logistical services such as “Third Party Logistics”.3.Since you have just mentioned 3rd PL would you please brief us what is 5th party logistics (5PL) and what is its relevance in present period? Explain the complexities?Ans: There is clearly a lot of confusion in the industry around this acronym, what this stand for and what it mean in practice, to understand 5th party logistics one has to understand the other 4PLs. The First party (1PL) is the vendor who is manufacturing or selling, the Second party (2PL) is the customer who is buying and the Third party (3PL) is the logistics service provider who is giving the service of taking the goods from the seller to the buyer, Fourth party logistics (4PL) is a logistics management service that does not touch or run logistics services but only manages multiple 3PLs and freight providers on behalf of the vendor rolling the package up into a single bill, hence they are a fourth party in the transaction. 5PL is just a new made up acronym to make it sound like you are at the cutting edge. True 4PL is rare, 5PL does not exist.4.You have worked across different industries. How are the Logistics practices different in different industries?Ans: The present scenario looks like there is a race within the freight forwarding and Shipping industries, every company wants to deliver the good results by implementing new ideas and technologies to serve the customers to its satisfactory level, the competition is very high that we can say it’s a “Cut Throat” situation, whoever is offering the best service with low price is get-ting the good business.5.What are the opportunity areas in freight forwarding and logistics sector?Ans: Let me first tell you what is a freight forwarder, it is an agent who acts on behalf of im-porters, exporters or other companies or persons to organize the safe, efficient and cost-effective transportation of goods by arranging the best means of transport, taking into account the type of goods and the customers delivery requirements. They use the services of shipping lines, airlines and road and rail freight operators. In Freight forwarding and shipping one can opt for different prospects such as Marketing and Sales to generate the Freight business for the company, in Operations to handle the logistics Flow, In Commercial to negotiate the freight charges, in to Planning to plan the equipment ..etc6.What can be a simple solution to complex problems you face at this position?Ans: In every Industry customer satisfaction is the first priority, it is the same in the service industries like Freight Forwarding, at this position I have experienced one thing that is if you are committing a service to a customer based on what your capabilities are it is good but over-committing for the services which you don’t have will land you in trouble and with an unsatis-fied customer.7.What would be your advice to the fresh graduates coming out after doing MBA(IB) and how has the scenario changed according to you since you passed out of JMI as a fresh graduate in 2008?Ans: Firstly I will wish them all a very good luck as I have full faith on the younger generation that they'll be the one making MIB a new platform, and the best MNC would run for them to hire, dreaming about the overnight success is not going to help at all, you have to accept the new challenges and have to grab them, don’t be afraid of taking challenging jobs. If u by any means land up in a challenging job consider yourself lucky enough, because the challenges will only sharp you for the best.

By—Hina Saifi 2nd Year MIB, JMI

About Dabir AlamHow has your journey been as a fresher from Jamia Mil-lia Islamia to DACHSER India than as a Sr. Executive- Sales & Marketing to Mar-keting Professional with Basem International (Saudi Arabia)?Ans: I am proud to finish my studies from Jamia as it has given me what I always dreamt for, looking back to where I started my journey as a fresher in a firm which deals in freight, shipping and Logistics, in the course we had studied the functionality of shipping and freight at the time of masters, but the truth is, prac-tical knowledge is entirely differ-ent from what we study from books. Working in a multina-tional firm like DACHSER gave me a great exposure and had learned new terminologies and different aspect of work process, after two years of extensive work experience, I got the opportunity to work in Saudi Arabia with Basem International, working in Saudi Arabia is totally different, work environment is completely different from India; first chal-lenge was to understand the Lan-guage then the people from dif-ferent culture from different countries. It has been a learning experience throughout.

Volume 2 , Issue 2Cont…..from Page 3

Yet they soldier on. Edward Snowden, whose leak of classified U.S. National Se-curity Agency documents last week laid uncover its extensive surveillance of phone and internet records, has joined this pantheon of heroes. The individual re-sponsible for one of the most significant leaks in US political history is Edward Snowden, a 29-year-old former technical assistant for the CIA and current em-ployee of the defence con-tractor Booz Allen Hamil-ton. Snowden has been working at the National Se-curity Agency for the last four years as an employee of various outside contractors, including Booz Allen and Dell. The young American was at a crossroads: to con-tinue with his cushy and highly paying job(USD 2, 00,000 per annum) as an analyst for the NSA or chal-lenge the world’s most pow-erful state, which, “if they want to get you, over time they will.” He took the road less travelled, surrendering his claim to a comfortable life in order to be able to shine a harsh light on the U.S. government’s spying excesses.

Above all, Edward Snowden should be lauded for his decision to bear scrutiny and criticism from fellow citi-zens, the curtailment of whose freedoms he saw as unacceptable. Giddy from the Kool-Aid offered by a U.S. President committed to human rights on paper while systematically undermining

“The only way of finding the limits of the possi-ble is by going beyond them into the impossible.

”Arthur C. Clarke

CMS , MIB

E-mail: hina_saifi786@yahoo.co.in, Habib.siddiqui100@gmail.com

Phone: 8285817199

For Previous Editions Pleases Visit www.jmimibytes.webs.com

EDITOR-IN-CHIEF:

MS.SUNAYNA KUMARAssistant Professor.

STUDENT EDITORS:

Habibullah Siddique

Hina SaifiRukhsar Akhtar

Interview:Hina Saifi

CONCEPT & DESIGN:

SAMIK SARKAR.

WEBSITE DESIGNER

MOHD IBRAHIM BADAR

them at home and abroad,his detractors have branded Mr. Snowden a traitor and betrayer of the ‘American way of life’. Speculation about his conduct has al-ready taken a turn for the banal: why he chose to leak NSA documents to a foreign news outlet (the Guardian), how a high-school dropout was granted access to top-secret material, and what sinister aims drove him to seek refuge in Hong Kong. Commentators turned ex-perts in international law have ventured to suggest his possible kidnapping by U.S. officials would be legal. The stream of publicity in his direction, both favorable and otherwise, was unavoidable but the young whistleblower has carefully and thoroughly stayed away from the spot-light. He said in an interview “I don’t want public atten-tion because I don’t want the story to be about me. I want it to be about what the U.S. government is doing. My sole motive is to inform the public as to that which is done in their name and that what is done against them.”He is so determined and confident about what he has done that he creates a clear distinction between himself and army private (Ellsberg & Manning). As he said, “I carefully evaluated every

US Government’s Deficiency

Cont…..from Page 1

Quote For The Month

single document I dis-closed to ensure that each was legitimately in the public interest. There are all sorts of documents that would have made a big impact that I didn't turn over, because harming people isn't my goal but Trans-parency is."

As he readies himself for a lasting-long legal battle against extradition and eventual trial for treason, Mr. Snowden has, through his revela-tions, convincingly un-derscored the dangers of non-restricted executive power. His courage and moral persuasion in the face of extreme odds are an inspiration to defend-ers of civil liberties eve-rywhere. They must ensure he is not perse-cuted.By—Habibullah Sid-diqui 2 Year MIB CMS, JMI