A Debate of the Death Penalty Essay - 1242 Words

The death penalty raises important questions about the right to life, who has a right to life, and under what circumstances a right to life can be taken away. I believe there are no circumstances under which capital punishment is justified. I will proceed to defend my claim that capital punishment is unjustified by arguing a position that killing is wrong because it deprives individuals of valuable futures. To support my thesis that capital punishment is not justified, I will expand upon an argument made my Don Marquis in his essay â€Å"Why Abortion is Immoral† in which he argues that killing is immoral on the grounds that it deprives human beings of a valuable future. My argument is as follows: 1. Killing is wrong because it deprives the†¦show more content†¦The outside factors and conditions are irrelevant. Rather, the value is determined by how that person perceives his or her own life and these future experiences. Thus, when someone is killed, he or she is deprived of all the things that were of value and will be of value to him or her in the future. Causing this loss of a valuable future is ultimately what makes killing wrong and immoral because that individual has permanently lost the opportunity to enjoy his or her future experiences which are valuable to him or her. My second premise states that death row criminals are in the same moral category as other human beings with respect to the moral value of their lives. The only factor which differentiates a criminal from a non-criminal is the fact that the criminal, usually irrefutably, violated community standards and the law to commit a crime. In the case of a criminal on death row, he or she would have had to have committed a serious capital crime to receive the death sentence. Since committing a capital offense is the only reason death row criminals are different from other human beings, death row criminals are the same as other human beings in every other respect, including with respect to the value of their futures. Furthermore, the future of a criminal on death row is just as valuable as the future of a human being not on death row. Any form of capital punishment is a form of killing. It does not matter who is actually doing theShow MoreRelatedThe Debate On Death Penalty1447 Words   |  6 PagesThe debate on death penalty In her book Last Words From Death Row: The Walls Unit, Norma Herrera writes about the tribulations she and her family went through while trying to free her brother, Leonel, from the death row. Despite showing glaring and overwhelming evidence claiming his innocence, Leonel was sentenced to death for a crime that he did not commit. His last words to the world were, â€Å"I am innocent, innocent, innocent. I am an innocent man, and something very wrong is taking place tonightRead MoreDeath Penalty Debate2037 Words   |  9 PagesDeath Penalty Debate Paper BCOM/275 The death penalty is an issue that has continually created conflict in today’s society. Many people arguing whether or not the death penalty should exist. Who’s to say whether the death penalty is a form of justice and therefore a valid and appropriate punishment or whether it is a â€Å"cruel and unusual† form of punishment. â€Å"The Arizona Supreme Court threw out the death sentences for a Tucson man who bludgeoned his girlfriend and her two childrenRead MoreThe Debate On The Death Penalty1597 Words   |  7 PagesThe debate on the death penalty has been the ongoing question for generations. There are plenty of different sides to take on this issue. You have the side where some people think that putting prisoners to death is inhumane and that no matter what they did putting a human to death is wrong. While others may think that if the crime is extreme enough that the prisoner who committed this crime should pay for it with their own life. Throughout history there have been several instances where prisonersRead MoreThe Debate On The Death Penalty1892 Words   |  8 PagesDeath Penalty The debate on if the death penalty is ethical is something that is a long-standing debate depending on what side of the issue you are on. Both sides of this issue have their points yet there are always things about the issue that kept it in the forefront. The right to life is taken for granted without thinking twice, however, due to the laws of this country the freedom we take for granted can be taken away with the mistakes we made. Looking at both sides of the issue gives insightRead MoreDeath Penalty Debate Essay1235 Words   |  5 Pagescontroversial debate over the death penalty has been going on for a very long time and still has no conclusive solution. In the United States that is, most of the rest of the civilized world has done away with the death penalty a long time ago. Many people have different views on this issue. Although, there is a consensus that heinous murders need to be severely punished, there is no consensus on the choice of that punished. The debate over the proper punishment lies between the death penalty and lifeRead MoreIntroduction Of The Death Penalty Debate1523 Words   |  7 PagesIntroduction to the Death Penalty Debate It was said by an Iowa State Supreme Court justice in the 1840s, â€Å"Crime indicates a diseased mind in the same manner that sickness and pain do a diseased body. And as in the one case we provide hospitals for the treatment of severe and contagious diseases, so in the other, prisons and asylums should be provided for similar reasons† (Banner, 2002, p.118). Individuals who have committed crimes serve their sentences and punishments, or are â€Å"treated†, in prisonsRead More The Death Penalty Debate Essay1041 Words   |  5 PagesThe Death Penalty Debate The issue of the death penalty is widely disputed. So disputed that maybe I shouldn’t have picked this topic. But nevertheless, the death penalty is an issue that needs to be addressed. Should the death penalty be abolished from our criminal justice system? Well, that depends on whom you ask. If you ask me†¦ no. I personally don’t see anything wrong with the death penalty because there are a lot of criminals that are just too dangerous to society and death is the onlyRead MoreThe Death Penalty Debate Essay746 Words   |  3 PagesThe Death Penalty Debate To kill or not to kill. That is the question. Some people think it is wrong; however, a close look into the matter will show it is the right thing to do. The Bible states thou shall not kill but it also states an eye for eye. The death penalty is the worst and most deserved punishment for those who choose to take a life. There is no excuse for a life to be taken; therefore, the murderer should be punished to the full extent. Imagine a lovedRead MoreThe Debate Over Death Penalty1618 Words   |  7 PagesProfessor Reiner Writing 39C 7/20/16 Debates over Death Penalty in the United States The issue of death penalty today is a popular topic for numerous public and scholarly discussions. The death penalty has a long and distinguished history in the United States, as it has been around in some form—either official or otherwise—since the beginning of American society. America originally adopted the British justice system, with hundreds of crimes being punishable by death. Slowly but surely, states beganRead MoreThe Death Penalty Debate Essay978 Words   |  4 PagesThe death penalty seems to be a very debatable subject. There are arguments and support for both sides of the debate, but which side is right? That is a tough question to ask. After reading the article in the textbook, two other articles, and looking at statistics, I seem to feel that the death penalty may not be the right answer. The article in the textbook The Death Penalty in the United States and Worldwide was fairly informative. One of the points it brought up was the cost of life without

Critical Analysis of the India Sri Lanka Fta Free Essays

string(65) " was ultimately the major player in the move towards free trade\." INDIA – SRI LANKA BILATERAL FREE TRADE AGREEMENT: Critical Analysis INTERNATIONAL TRADE LAW PROJECT REPORT LLB 404 Submitted to: Asst. Professor MANISH SHARMA Submitted by: ADITYA VASHISTH 13510303809 (VIII Semester) May, 2013 Amity Law School, New Delhi TABLE OF CONTENTS 1. INTRODUCTION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. We will write a custom essay sample on Critical Analysis of the India Sri Lanka Fta or any similar topic only for you Order Now 3 2. HISTORICAL OVERVIEW†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5 3. CONCEPTUALIZATION OF THE ISFTA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 4. CHARACHTERESTICS OF THE ISFTA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 5. ASSESSMENT OF TRADE UNDER THE ISFTA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 6. LOOKING BEYOND FTA: CEPA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 17 7. CONCLUSION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦19 8. BIBLIOGRAPHY†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20 INTRODUCTION The growth of regional trade blocs has been one of the major developments in international relations in recent years. During the 1990s, regionalism was conceived as a developmental option in itself that would promote competitiveness of trade bloc members and help their fast integration into the international economy. As per the World Bank report on Global Economic Prospects (2005) the number of the Regional Trade Agreements (RTAs) has more than quadrupled since 1990 rising to around 230 by late 2004 and the trade between RTA partners now constitutes nearly 40% of total global trade. Quoting, World Trade Organisation (WTO) this report estimates another 60 agreements at various stages of negotiations. The World Bank report points out that the boom in Regional Trade Agreements (RTAs) reflects changes in certain countries trade policy objectives, the changing perceptions of the multilateral liberalization process, and the reintegration into the global economy of countries in transition from socialism. Regional agreements vary widely, but all have the objective of reducing barriers to trade between member countries which implies discrimination against trade with other countries. At their simplest, these agreements merely remove tariffs on intra bloc trade in goods, but many go beyond that to cover non-tariff barriers and to extend liberalization to investment and other policies. At their deepest, they have the goal of economic union and involve the construction of shared executive, judicial, and legislative institutions. [1] Among the seven member countries of the South Asian Association of Regional Cooperation (SAARC), India and Sri Lanka accounts for the largest bilateral trade flow in the region. Thanks to the India-Sri Lanka Free Trade Agreement (ISFTA) that was signed between the two countries in December 1998 and operationalized in March 2000. However, almost at the same time in 1993 the agreement on South Asian Preferential Trading Arrangement (SAPTA) was signed among the seven member countries of SAARC. The objective was to promote and sustain trade and economic cooperation within the SAARC region through the exchange of concessions. This pushed the agenda for promoting bilateral trade between India and Sri Lanka to the background. However, the negotiations under SAPTA progressed at a very slow pace and became a time consuming process. The failure of SAPTA brought about the desire for a free trade agreement with India to the forefront from the Sri Lankan side. It was felt that such an agreement would give the much needed market access to the exporters from Sri Lanka. India was also keen to acquire the South Asian markets and expressed its willingness to consider bilateral free trade agreements with its South Asian neighbours. Accordingly, the India-Sri Lanka Free Trade Agreement (ISFTA) was signed between the two countries on 28 December, 1998 in New Delhi, India and came into operation on 1 March, 2000. India and Sri Lanka look upon regional/bilateral FTAs as a complement to the multilateral trading system by ensuring the compatibility of the FTAs with the rules laid down by the WTO. Also, both countries are members of the South Asian Association for Regional Co-operation (SAARC) which envisaged the formation of a South Asian Free Trading Arrangement (SAFTA) through successive rounds of tariff concessions between member countries. However, the efforts of member countries have not yielded the expected results. [2] A Joint Study Group with representatives from both countries was set up which submitted its report in October 2003 that paved the way for negotiations on the Comprehensive Economic Partnership Agreement (CEPA). In the present context of Indo-Sri Lanka trade, the services agreement aims to remove/reduce market access and national treatment barriers, and promote co-operation between the services sectors of the two countries. [3] HISTORICAL OVERVIEW Trade relations between Sri Lanka and India date back to pre-colonial times. Under British rule, trade between the two countries was geared to fulfill the needs of the colonial power in the occupying territory, and was dominated by imports and exports in food-related items. After independence in 1947 and 1948 for India and Sri Lanka respectively, both national governments adopted inward-looking policies centered on the concepts of â€Å"self-reliance† and import substitution industrialization. Consequentially, a very modest level of trading took place between what became two virtually closed economies. In 1977, Sri Lanka became the first South Asian country to liberalize its economy, opening it up to the rest of the world. However, substandard products from India – the result of excessive inward-looking policies were not competitive against the goods from East Asia that flooded the Sri Lankan market. With partial liberalization of the Indian economy during the 1980s and further liberalization in 1991, trade began to pick up, particularly in favour of India. Between 1993 and 1996, there was a doubling of two-way trade, and between 1990 and 1996 imports of Indian goods to Sri Lanka grew by 556 per cent. In 1995, India replaced Japan as the largest source of imports to Sri Lanka, accounting for 8-9 per cent of total imports. For Sri Lanka, it became evident that trade with the SAARC region ultimately amounted to trade with India owing to the sheer size of the latter’s rapidly emerging economy and expanding middle-class population. Hence, the perceived mutual benefits of free trade between the two countries became increasingly clear. Sri Lanka’s private sector – frustrated by the slow progress of the SAPTA[4] to boost regional trade – pressurized the government to enter into a free trade agreement (FTA) with the Indian government that would increase market access for Sri Lankan exporters. [5] Birth of the ISFTA (India – Sri Lanka Free Trade Agreement)[6] Politics was ultimately the major player in the move towards free trade. You read "Critical Analysis of the India Sri Lanka Fta" in category "Papers" Sri Lanka entertained the hope of clearing away the political tensions of the 1980s and engaging India’s assistance once more in solving the North/East conflict of the country. India was propelled by an immediate need to acquire South Asian markets following economic sanctions imposed on the country for the nuclear tests conducted in May 1998. Among other factors, these political forces led to the signing of the Indo-Sri Lanka Bilateral Free Trade Agreement (ILBFTA) on December 28, 1998. The Commerce Secretary of India and Finance Secretary of Sri Lanka exchanged letters that operationalise the India-Sri Lanka Free Trade Agreement (ISFTA) between India and Sri Lanka signed in New Delhi on 28 December 1998 by H. E. the President of Sri Lanka and the Honorable Prime Minister of India with effect from 1st March 2000. [7] The economic objectives of Sri Lanka were to increase Trade ties with South Asia’s dominant economic power, to induce the transformation of Sri Lanka’s exports from low-value added goods to high value-added goods aimed at niche markets, and to provide low-income groups with cheap consumer imports from India. Moreover, Sri Lanka hoped to attract more export-oriented foreign direct investment (FDI) from third countries by promoting itself as an effective entry point into the Indian market. With the Board of Investment (BOI) being made a â€Å"one stop shop† in the early 1990s, Sri Lanka has long been a relatively appealing location for foreign investors compared to its more bureaucratized South Asian neighbours. [8] Thus, the agreement with effect from 1st March 2000, aimed to provide duty free as well as duty preference access for the goods manufactured in the two countries. Both the countries had listed products for immediate duty free entry into each other’s territories. India having agreed to phase out its tariffs on a large number of items within a period of three years. Sri Lanka, likewise to do so in eight years. Both the countries had drawn up ‘Negative Lists’ in respect of which no duty concessions will apply. These Lists would include items on which protection to local industry had been considered essential. Both the countries intended to reduce the items in the Negative List through periodic consultations. [9] The Agreement sets out the ‘Rules of Origin’ criteria for eligibility for preferential access. Products having domestic value addition of 35% will qualify for preferential market access. Sri Lanka’s exports with a domestic value addition content of 25% will also qualify for entry to the Indian market if they have a minimum of 10% Indian content. [10] CONCEPTUALIZATION OF THE ISFTA The conceptualization phase of the ISFTA occurred between December 1998 and March 2000, and was based on several previous studies and recommendations. [11] The agreement was intended to supersede the existing economic partnership under the SAARC, viz. , SAPTA. Bilateral free trade greements are traditionally formulated using the â€Å"positive list† approach, whereby each participating country catalogues the individual commodities for which it would grant preferences to the other. Nonetheless, owing to the time-consuming nature of such a method, the ISFTA was formulated on the â€Å"negative list† approach; each country extending concessions/ preferences to all commodities except those indicated in its â€Å"negative† list, namely items of a sensitive nature with regard to protecting national interests. The two countries agreed for preferential treatment on 5112 tariff lines (by 6-digit HS Code). An 8-year time table was devised for phasing out tariffs. Non-tariff barriers, such as Indian State taxes and customs- level procedures (e. g. , landing tax), were to be gradually removed as well. [12] Taking into account the asymmetry between the two countries, Sri Lanka was accorded special and differential treatment; the immediate duty- free list (319 items) and 50 per cent preferential duty list (889 items) were considerably smaller than those offered by India (1,351 items and 2,799 items, respectively), while the Sri Lankan negative list (1,180 items) was considerably larger than India’s (196 items). Among others, the agricultural sector of Sri Lanka was not subject to liberalization and was included in the negative list. The majority of Indian exports were initially granted only a 35 per cent duty concession with an 8-year tariff reduction period, while Sri Lankan exports were granted a 50 per cent concession with a 3-year tariff reduction period. Moreover, Sri Lanka was granted the freedom to reduce its negative list at her comfort level, instead of a pre-determined formula. Rules of origin (ROO) criteria were also relaxed in Sri Lanka’s favour. Preferential treatment requires a minimum of 35 per cent domestic value addition, or 25 per cent when Indian inputs comprise 10 per cent. In addition, although the agreement does not feature revenue compensation, Sri Lanka maintained that tariff concessions would not be granted for high-duty imports such as automobiles; import duties are an important source of government revenue and comprise 2 per cent of Sri Lankan GDP. Some aspects of the agreement were deferred for subsequent negotiation; these include the number of entry ports, Indian state-level taxes, customs procedures, and the specifics of phasing out non-tariff barriers. 13] The agreement included mechanisms for review and consultation, as well as settlement of disputes above and beyond the protection afforded to both countries under the safeguards clause. CHARACHTERESTICS OF THE ISFTA The ILFTA between India and Sri Lanka is a landmark in the bilateral relations between the two countries. It is expected to bring about enhan ced trade between the two countries as well as to expanded and diversified cooperation in a range of economic spheres, including investments. This is the first such Agreement in the South Asian region which could serve as a model for similar bilateral Agreements in the region. It has an institutional framework in the form of the Indo-Lanka Joint Commission, a dispute settlement mechanism, and so forth. Its significance further lies in that it can be implemented more expeditiously and also more flexibly, unlike the protracted nature of negotiations generally associated with multilateral arrangements. [14] These following features characterize Indo-Sri Lanka Free Trade Agreement: Elimination of Tariffs: 1. By India †¢ Zero duty on items upon entering into force of the Agreement – the list is to be finalized within 60 days of signing of the Agreement. E): 1351 products. †¢ Concessions on Textile items restricted to 25% on Chapters 51-56, 58-60, 63. Four Chapters under the Textile sector retained in the negative list (Chapters 50, 57, 61 and 62) (TEX): 528 products. †¢ Garments covering Chapters 6162 while remaining in the negative list, will be given 50% tariff concessions on a fixed basis, subject to an annual restriction of eight mill ion pieces, of which six million shall be extended the concession only if made of Indian fabric, provided that no category of garments shall exceed one and half million ieces per annum (GAM). †¢ 50% tariff preference on five tea items, subject to a quota of 15 million Kg. Per year (TEA): 5 products. †¢ 50% margin of preference upon coming into force of this Agreement on all items, except for those on the negative list. To be phased out to zero duty in three years (IR): 2799 products. †¢ A negative list of 429 items to be retained (D I): 429 products 2. By Sri Lanka †¢ Zero duty on about 319 items upon entering into force of the Agreement (F I): 319 products. Phasing out of tariffs on items with 50% margin of preference on 889 products upon coming into force of the Agreement, with up to 70% at the end of the 1st year, up to 90% at the end of the 2nd year and 100% at the end of 3rd year (F II): 889 products. †¢ For the remaining items, (except for those on the negative list), which is the Residual List, preference would be not less than 35% before the expiry of three years, 70% before the expiry of six years and 100% before the expiry of eighth year. (SLR): 2724 products. A negative list of 1180 items (DII): 1180 products. OBJECTIVES: The Objectives adopted are: †¢ Analyze how much of the bilateral trade – both imports and exports are covered under different categories of concessions offered and received by India and Sri Lanka over the past five years, viz. 1996-97 to 2000-01. †¢ To analyze, in terms of 21 HS Sections, the distribution of trade under each category. †¢ To analyze the top products in terms of 8-digit HS Classification for India and 6-digit classification for Sri Lanka under each category to identify the success stories. To ascertain the trade potential between the two countries and assess the same in terms of products offered concessions under different categories. This exercise is based on the last y ear of data availability. The concessions offered by the Contracting States have been at 6-digit HS classification. In order to attain the aforementioned objectives, the bilateral trade data[15] is analyzed at the highest level of desegregation for India, viz. 8-digit HS classification by disaggregating all concessions at 6-digit classification to 8-digit levels. ASSESSMENT OF TRADE UNDER THE ISFTA The India Sri Lanka FTA was signed in 1998 and became operational in March 2000. Mutual phased tariff concessions on different products on 6 digit Harmonized Classification (HS Code) basis have been granted by both the partners. Each side is having its negative lists[16] (no concessions), positive list (immediate full concessions) and a residual list5 (phased tariff reductions) as per the framework of ISLFTA. The preferential trade under the FTA is governed by Rules of Origin, which specify the criteria for a product to qualify for tariff concessions from the importing member. After signing of ISFTA, trade between India and Sri Lanka has increased manifold. India‘s import from Sri Lanka was US$ 45 million (0. 10% of total imports) in 1999, which increased to US$ 499 million (0. 29%) in 2006; India‘s export to Sri Lanka was US$ 482 million (1. 4% of total exports), which became US$ 2110 (1. 74%) in 2006. Similarly, Sri Lanka‘s import form India in 1998 was 538 million (9. 49%), which increased to US$ 1804 million (18. 46% rank 1) in 2006. Sri Lanka‘s exports to India has grown from US$ 35 million (0. 5%) in 1998 to US$ 490 million (7. 26%, rank 3) in the year 2006. In this way India became the major trading partner for Sri Lanka after the signing of the Agreement. The number of Sri Lanka‘s export items to India increased from 505 in 1996 to 1,062 in 2006 items on 6 digits of HS classification. There is a visible shift in Sri Lanka‘s exports from agricultural products to manufacturing goods The major products exported by S ri Lanka to India in 2006 included – Fats and Oils (22. 3%), Copper and Articles of Copper (8. 6%), Electrical Machinery (8. %) and Spices, Coffee, Tea (6. 2%). Similarly, India exported Mineral Fuel, Oil (22. 44%), Vehicles (18. 08%), Iron and Steel (4. 54%), Machinery, Reactors, Boilers (4. 22%) and Pharmaceutical Products (4. 13%) to Sri Lanka. There has been an increase in total share of import of Sri Lankan goods from 0. 10% in 1999 to 0. 29% in 2006. The import from Sri Lanka has also increased in the items on the residual list from 0. 2% in 1996 to 0. 47% in 2006. It is noteworthy that there has been an increase in the imports even in the negative list items from 0. % in 2001 to 1. 19 % in 2006. This could be mainly due to the increased awareness to partners market, smoothening of customs issues and improved access to ports of entry due to the increased engagement of partner countries on products having preferential tariffs on residual list, the so called border effect s. By 2008, the ISFTA entered into full force. Both governments were pleased with the results achieved through the Free Trade Agreement and proclaim that it had facilitated the expansion of two-way trade between India and Sri Lanka. India, which was once the second largest exporter to Sri Lanka pre-ISLFTA, has now become the island‘s largest source of imports. Meanwhile India has become the third largest export destination for Sri Lankan products (after the United States of America and the European Union). The argument is that, given the asymmetrical proportions of the economies of the two countries, if not for the ISLFTA, Sri Lankan exports would not have been able to achieve their current level of market penetration. The bilateral import-export ratio that had been 10. :1 in 2000 had improved in Sri Lanka‘s favour to 5. 3:1 by 2007. According to the then Indian High Commissioner to Colombo, the ratio may have been as skewed as 40:1 (in India‘s advantage, of course) had the ISLFTA not been in operation. [17] Over the ten years in which the ISLFTA has been in operation, Indian foreign direct investment in Sri Lanka has also expanded exponentially, most recently in telecommunications (Bharti Airt el) and glass-manufacturing (Piramal Glass), and biscuits and sweets (Britannia). In 2009, India was the island‘s third largest foreign investor (after China and the United Kingdom) with inflows of US$78 million and largely attracted to the telecommunications, energy and power sectors (Central Bank of Sri Lanka 2010: 114). The Institute of Policy Studies (2008: 47-48) has estimated that Indian foreign direct investment has expanded from a cumulative total of LKR165 million in 1998 (1. 3 percent of total FDI) to LKR19. 5 billion in 2005 (8. 3 percent of total FDI). However, the causal connection between the commencement of the ISLFTA and the spiral in inward foreign direct nvestment from India is asserted rather than demonstrated, and may have more to do with aggressive Indian investment strategies since that country‘s economic boom, than the existence of the Free Trade Agreement. [18] IMPACT OF THE FTA Despite its importance in the South Asian region, not many empirical studies have been conducted to access the impact of ISFTA. One study that attempted to analyze the impact of this FTA was conducted by Kelegema and Mukherjee in February 2007[19]. Their study is based on the bilateral trade flows under different categories of products. Sector wise imports and exports figures are compared before and after the FTA. They have concluded that the two countries have displayed political will to forge ahead towards economic integration and the considerable size disparity between the two economies does not hinder bilateral free trade when appropriate special and differential treatment is accorded to the smaller country. Some new goods from Sri Lanka have found entry into the Indian market following the exchange of preferences. Finally, they have concluded that the economic benefits of free trade can and do override political problems. [20] Another report on evaluating economic performance of the FTA is ? Joint Study Group on India –Sri Lanka Comprehensive Economic Partnership Agreement constituted by the partner Governments (JSG report, 2003)[21]. JSG (2003) has concluded that ISLFTA promoted a 48% increase in bilateral trade between 2001 and 2002, and at present India is the largest source of imports into Sri Lanka, accounting for 14% of Sri Lanka‘s global imports. India is the fifth largest export destination for Sri Lankan goods accounting for 3. 6% of Sri Lanka‘s global exports. [22] Based on the success of ISFTA, the JSG has recommended that the two countries enter into a Comprehensive Economic Partnership Agreement (CEPA) covering trade in services and investment and to build upon the ISLFTA by deepening and widening the coverage and binding of trade in goods. LOOKING BEYOND FTA: CEPA The decision to work towards a Comprehensive Economic Partnership Agreement (CEPA) was taken in June 2002. During the visit of the Sri Lankan Prime Minister to India in June 2002, the Prime Ministers of India and Sri Lanka discussed the profound changes in the international economic and political arena that have been generated by the process of globalization, on the one hand, and emergence of closer regional economic associations, on the other. They agreed on the need to widen the ambit of the ISLFTA to go beyond trade in goods to include services and to facilitate greater investment flow between the two countries. Accordingly, a Joint Study Group (JSG) was set up to make recommendations on how to take the two economies beyond trade towards greater integration and to impart renewed impetus and synergy to the bilateral economic interaction, through the conclusion of a Comprehensive Economic Partnership Agreement (CEPA). [23] Both sides have committed to an agreement consistent with the rules of the WTO. While the numerous shortcomings of the existing FTA must be remedied, its evident achievements can be built upon with relative ease to formulate the new agreement. The required institutional support is already in place with the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Ceylon Chamber Commerce, which function as the focal points for economic cooperation, as well as the Indo-Lanka Joint Commission and the FTA’s Working Group on Customs. The first round of technical-level negotiations (TLNs) on the CEPA commenced in February 2005, somewhat delayed after changes in government in both countries. Seven rounds of negotiations have been completed by 2006. The CEPA is to cover trade in goods and services, investment liberalization, and economic cooperation. The negotiations on goods focus primarily on reducing the ISFTA’s negative lists, relaxing ROO criteria, signing mutual recognition agreements (MRAs) on product standards and certification procedures, and concluding the Memorandum of Understanding (MOU) on consumer protection and legal metrology. Particular attention will be given to developing the supply side of the Sri Lankan economy. The CEPA will be notified under the GATT’s Article XXIV[24], which covers substantial trade instead of under the â€Å"Enabling Clause† which provides more flexibility to etermine the trade coverage between developing countries. In a nutshell, the main objectives of the CEPA are to: 1. Deepen existing preferential trade between the two countries 2. Reduce the negative lists of the ILBFTA 3. Relax ROO criteria 4. Liberalize the services sector beyond the coverage of the General Agreement on Trade in Services (GATS) 5. Liberalize investment 6. Facilitate economic cooperation as an i mpetus for liberalization of the services and investment sectors, with the Indian Line of Credit to play a crucial role. [25] CONCLUSION The operationalisation of the ISFTA in 2000 was an important step taken by the two countries to harness the economic complementarities between them. As expected, post  ­ISFTA bilateral trade performance between India and Sri Lanka indicates that exports and imports have grown considerably, accompanied by significant product diversification. Despite the fact that the ISFTA was confined to trade in goods, increases in trade links between India and Sri Lanka have been further triggered by large investment flows as well as services integration between two countries over time. Nevertheless, investment flows have been mostly one sided as would be expected, flowing from India to Sri Lanka, where the bulk of Indian investment in manufacturing in the post  ­ ISFTA phase has come from Indian investors keen to take advantage of preferential duty access to the Indian market in key sectors such as Vanaspathi and copper. Nevertheless, the potential for greater linkages in investment and services has been fairly obvious based on recent performance, and in part has encouraged both countries to further deepen integration in these areas under the CEPA framework. It is evident from detailed analysis of post ­ISFTA trade flows that Sri Lanka’s exports to India have expanded significantly. However, it is also clear that the overwhelming share of the increase has originated in a few commodities, raising concerns about the sustainability of the growth momentum in the long term. The bulk of the exports have been concentrated in two items, namely the vegetable fats and oils and copper and articles of copper, which are not considered to be sustainable in the long run. It is by resolving these issues that the movement towards CEPA could be put on fast track to make it a reality. CEPA has the potential to break new ground in South Asia’s forward movement towards economic prosperity. BIBLIOGRAPHY 1. Mukherjee, I. N. , T. Jayawardena and S. Kelegama (2002), ‘India-Sri Lanka Free Trade Agreement: An Assessment of Potential and Impact’, SANEI completed study (www. saneinetwork. net ). 2. The Graduate Institute Geneva, HEID Working Paper No: 04/2010: An Econometric Analysis of the India-Sri Lanka Free Trade Agreement. 3. Kelegama, S. nd Mukherji I. N. (2007), India-Sri Lanka Bilateral Free Trade Agreement: Six Years Performance and Beyond, RIS DP# 119, February 2007, Research and Information System for Developing Countries, New Delhi. 4. JSG (2003), India-Sri Lanka Comprehensive Economic Partnership Agreement, Joint Study Group, October 2003, http://www. ips. lk/publications/etc/cepa_reprot/islcepa. pdf 5. Jayawardena, L. et al. (1993 ), Indo-Sri Lanka Economic Cooperation: Facilitating Trade Expansion through a Reciprocal Preference Scheme, The United Nations University, WIDER, Helsinki. 6. An Act of Faith? † ten years of the India-Sri Lanka FTA, Law Society Trust, Sri Lanka, March 2010 (PDF File) 7. â€Å"India – Sri Lanka FTA: Lessons for SAFTA†, CUTS International, Dushni Weerakoon, Jayanthi Thennakoon. (PDF File) 8. Panchamukhi, V. R. et al. (1992), Indo-Sri Lanka Economic Cooperation: An Operational Programme, the United Nations University, WIDER, Helsinki. 9. Taneja, N. , A. Mukherjee, S. Jayanetti, and T. Jayawardena (2004), ‘Indo-Sri Lanka Trade in Services: FTA II and Beyond’, SANEI completed study (www. saneinetwork. net ). ———————– 1] An Econometric Analysis of India-Sri Lanka Free Trade Agreement, HEID Working Paper No: 04/2010 [2] See Shome (2001); Harilal and Joseph (1999); Taneja (2001). [3] Several Free Trad e Agreements related to goods trade are more of Preferential Trade Agreements rather than Free Trade Agreements. In the case of Indo-Sri Lanka, the terms CEPA and FTA are interchangeable. [4] The SAARC Preferential Trading Agreement (SAPTA) was signed in April 1993 and came into operation in December 1995. [5] RIS-DP # 119: India-Sri Lanka Bilateral Free trade Agreement, Saman Kelegama Indra Nath Mukherjee. 6] Available on the Board of Investment of Sri Lanka website, http://www. boi. lk [7] Supra, note 5. [8] Supra note 5. [9] Indo-Sri Lanka FTA: An Assessment of Potential and Impact, Saman Kelegama Indra Nath Mukherjee. [10] Supra note 9. [11] See Jayawardena, L. et al. (1993) and Panchamukhi, V. R. et al. (1992). [12] Supra note 5. [13] India had committed to the WTO that it would remove non-tariff barriers by 2004. [14] Supra note 9. [15] The data has been obtained from the Ministry of Commerce (India) electronic database over the period of 1996-97 to 2000-01. 16] Items, which are considered sensitive to the domestic industry by each partner to FTA, are included in the respective negative list. The items in negative list of Sri Lanka are not entitled for any duty concessions for imports from India. The same rule applies in case of India‘s negative list for Sri Lan kan products. [17] â€Å"An Act of Faith? † ten years of the India-Sri Lanka FTA, Law Society Trust, Sri Lanka, March 2010. [18] Supra note 17. [19] Supra note 9. [20] Supra note 1. [21] Joint Study Group Report on India-Sri Lanka Comprehensive Economic Partnership Agreement (JSG, 2003), can be found at : http://www. ps. lk/news/newsarchive/2003/20102003_islcepa_final/islcepa. pdf#search=’India%20Sri%20Lanka%20Trade%20Study’ [22] Supra note 1. [23] Supra note 21. [24] GATT– General Agreement on Tariffs and Trade. [25] The Indian Line of Credit is a credit facility granted by India to other developing countries to purchase goods and services from India, usually with a long re-payment period. Since January 2001, Sri Lanka has borrowed a total of US $281 million for the purchase of food, petroleum, buses, roofing sheets, and consulting services. How to cite Critical Analysis of the India Sri Lanka Fta, Papers

Crucial Target of Stability and Equilibrium

Question: Discuss about the Crucial Target of Stability and Equilibrium. Answer: Introduction: The crucial target of any economy is to maintain stability and equilibrium in the nation. Economics deals with this equilibrium, which can be defined as the ways in which the economic forces are balanced within the nation by the interaction of the two factors, the demand and the supply (Mankiw, 2014). The state of equilibrium is such that at that point none of the agents are willing to deviate from their situation unless some distortion in the market takes place as that may hamper their utility. In this write-up the interaction of the aggregate demand and the aggregate supply theory has been used to interpret the stability of the market. The concept of both the short run and the long run aggregate supply has been used to illustrate the reason behind the economy not deviating from the equilibrium in the long-run. Analysis and Discussion: The term aggregate demand can be described as the total quantity of goods and services that the consumers may demand at every possible range of prices (Michaillat Saez, 2013). Like any other demand curve the AD is also downward sloping which implies that consumers wants more goods a lower prices and vice-versa. At any point on the AD curve there is a match between the actual expenditure and planned expenditure of the consumers. The aggregate supply on other hand indicates the total production of the economy at every possible price ranges. The total quantity of services and goods produced in the market over a certain period of time indicates the aggregate supply of the economy. The AS curve is upward sloping as producers feel it fruitful to produce more goods at higher prices and less amount of goods when prices offered to them are less (Canto, Joines, Laffer, 2014). The economy can be divided into three types of market namely the labor market, the financial market and product market. Amalgamation of the three markets leads to the global equilibrium where the financial market acts as an intermediary between the two other markets. The AD curve has been generated from the IS-LM model and the AD-AS model helps us in understanding the short-run fluctuations in the economy (Bernanke, Antonovics, Frank, 2015). The diagram below highlights the short run scenario of the economy. The figure above highlights the equilibrium scenario of the market. At the initial level the equilibrium was at point E1 with the price at P1 and quantity at Y1. If there is a sudden rise in the output level then the short-run supply curve shifts outward. Also if there is a sudden decline in the price of the components that reduces the total production cost then there can be a possibility of change in the supply curve. Due to this shift in the SRAS curve, the equilibrium is distorted and the price decreases to point P2 from P1. At the same time the output produced increases to Y2 from Y1. Keeping other thing constant, the resultant effect is the change in the short run level of equilibrium in the economy. In the short run, at least one of the factors used in the production are fixed in nature and hence the economy may or may not be able to gain back the stability lost in the market. The government intervenes in the short run to restore the lost equilibrium by taking up either the expansionary or contractionary fiscal policy (Schwieelmann, 2013). If the government wants to reduce the output in the market then it takes up the contractionary policy. The government can raise the level of tax in this regard to cut down the level of output produced in the economy (Motyovszki, 2013).There can be several justification of the government behind taking up a contractionary policy. The government tries to keep the rate of unemployment within its natural level, it also tries to curb the inflation and prevent any misconception in the form of asset bubble within the economy. The figure below shows the equilibrium in the long run as given by the intersecting point of the long-run supply curve, the supply curve in the short run and the demand curve in which stability is ensured (Ogun, 2014). From the figure it can be seen that the long run supply curve, LRAS is vertical in shape. This can be possible because in the long run it is assumed that there is existence of NAIRU. The economy after utilizing all its resources has no way to deviate and bring changes in its production process. If it can be assumed that in the long run there is sudden increase in demand of any goods which caused a shift of the demand curve outward at AD1 then as a result the price is going to increase to P2. As the resources are already used optimally hence there is dearth of resources to expand the supply the quantity demanded cannot be matched with the supply. Gradually the demand gets reduced due to the increase in the price and the demand curve shifts back to its previous position. Hence, even if there is any change in the aggregate demand curve or supply curve in the long-run, it will be restored back to the original level (Keating, 2013). Conclusion: The write up can be summarized by stating that the 3 different kinds of market interacts and establishes the equilibrium in the market. The main motto of any economic planner is to plan policies that can help the market in attaining equilibrium. The government intervenes in the short-run to restore any discrepancies that crops up. It has been using the fiscal policy as their chief instrument and helping the nation in maintaining the balance between the total demand and total supply of goods, reducing unemployment and curbing the inflation. Ultimately in the long run the economic fluctuations are minimized and a stable equilibrium is restored in the economy. References: Bernanke, B., Antonovics, K., Frank, R. (2015). Principles of macroeconomics. McGraw-Hill Higher Education. Canto, V. A., Joines, D. H., Laffer, A. B. (2014). Foundations of supply-side economics: Theory and evidence. Academic Press. Keating, J. W. (2013). Interpreting permanent shocks to output when aggregate demand may not be neutral in the long run. Journal of Money, Credit and Banking, 45(4) , 747-756. Mankiw, N. G. (2014). Principles of macroeconomics. Cengage Learning. Michaillat, P., Saez, E. (2013). Aggregate Demand, Idle Time, and Unemployment (No. w18826). National Bureau of Economic Research. Motyovszki, G. E. (2013). The Evolution of the Phillips Curve Concepts and Their Implications for Economic Policy. Ogun, O. (2014). Reconstructing Long-Run Economics: Survey and Issues. Journal of Economics and Economic Education Research, 15(3) , 147. Schwieelmann, J. (2013). Effects of Fiscal Policy. Grin Verlag Ohg.

Rise and fall of marks and Spencer Essay Example

Rise and fall of marks and Spencer Essay When Michael Marks established a penny bazaar in mid 1880s, it was the beginning of a British success story that no one could have predicted. Marks Spencer Group (MS) has been a legendary organisation for over a century. However, after years of success, the retailing giant showed an alerting signal. This study provides a comprehensive and critical evaluation of the changes at MS from mid 1980s to 2002 and the results of its managements endeavours. This is undertaken by scanning through the history of MS and its background. Strategic tools like SWOT analysis, PEST analysis , Porters five model industry analysis , BCG Matrix and the Value Chain analysis are used to evaluate the whole spectrum of factors that contributed to the rise and decline of Marks and Spencer. An attempt is also made to suggest future strategies to be adopted to regain the lost ground. MS Background The company was started in Leeds in 1884 by Michael Marks , a Russian immigrant. Ten years later , Tom Spencer joined partnership with Marks and MS was born (Beaver, 1999). Their partnership had all the components of success, uniting entrepreneurial flair with the commercial expertise required to create a string of Penny Bazaars (Christopher, 2001). In the 1920s, the business exercised a revolutionary policy of buying directly from manufacturers rather than going through wholesalers. These unique relationships with suppliers gave the business an advantage and convenience that few of its competitors could match. We will write a custom essay sample on Rise and fall of marks and Spencer specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Rise and fall of marks and Spencer specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Rise and fall of marks and Spencer specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The growth of MS was fast and in 1926 it was listed in the London Stock Exchange as a public company (Whitehead, 1994). Two years later, Simon Marks took over the reins of MS from his father. He introduced the St. Michael brand , a symbol of excellence and quality. In 1930s, MS flagship store was opened at Marble Arch, London. Afterwards, food departments, which sold canned products, were introduced into the company. Moreover, MS started to made forays into the foreign markets in 1970s and had a mixed success in its foreign operations. It opened its first overseas store in Canada in 1973 and then the expansion continued in Europe (Daniels, 1995). It also exported its St. Michael brand merchandise to franchised stores in seventeen countries. This environmental analysis generates information which is structured and directed in a meaningful way for marketing and strategic planning process with respect to the present and anticipated situations. The internal environments are explored using the strength and weaknesses where as the opportunities and threats are analyzed for the external. The detailed factors that characterizes the strengths , weaknesses , opportunities and threats are listed as Appendix I. PEST Analysis Through the PEST analysis the external macro environment is explored. Here factors pertaining to the political, economical socio-cultural and technological aspects are looked into. Political The stability of the present labour government, its taxation policies, anti monopolistic policies, the employment laws and the formation of the competition commission so on are having a direct impact on the retail industry as well as M S. Mergers and acquisitions are not encouraged and hence thoroughly investigated. Because of the presence of the strong trade unions the companies are not in a position to introduce operation simplification just as the legendary Marks could introduce it in Marks and Spencer, immediately after the Second world war. As such firms have had to adapt to wage rises and have been forced to find other ways to lower costs. Supermarkets such as Tesco have in the past reduced costs by exploiting suppliers by taking advantage of their strong buyers bargaining power. Farmers in particular have been the subject of such exploitation though the governments competition commission has since attempted to rectify the situation by introducing a code of practice (BBC online 2001, Supermarkets code too weak ) Economic Corporation tax is currently 30% for large firms. Tax credit is allowed for research and development. Inflation and interest rates are at reasonable level with positive indicators in GNP growth rate. Even though recessionary trends are speculated about its drastic effects are not yet perceptibly seen in the economy. Of course the economy show signs of weakening. The underlying rate of inflation was 2.3% for March 2002. The Bank of England is attempting to keep inflation below 2.5% and hopes to prevent a rise in interest rates. A rise in interest rates will complicate any financing decisions and may hinder any long-term investments as it will increase the cost of debt as such alternative forms of investment such as equity become a more desirable form of investment though historically equity finance is seldom used for financing long term objectives due to the fact that it can be very costly and will dilute shareholder control. For the past two years the prediction of an impending recession has loomed large though this has not happened. Many economists predict an imminent recession. If that prediction is proved correct , history dictates that , in times of recession , consumers will be more price sensitive and less likely to purchase high priced goods due to a lack of disposable income. Socio-cultural Current trends suggest that over the last 10 years there has been a large rise in the popularity of bulk buying , with food items in particular being bought in bulk. Moreover there has been a increase in demand for convenient foods such as sandwiches and microwave meals. The impact of September 11th in conjunction with the rise of charity initiatives suggest that many people are likely to adopt a more sympathetic view to world problems and thus greater importance is likely to be placed on corporate responsibility and charity initiatives. Though Tesco and Gap practices in the past have been deemed irresponsible and yet their profit was not adversely affected. Technological The ever-increasing popularity of the Internet and the advent of broadband technology has resulted in many firms now offering online services allowing for home shopping. The use of intricate computer systems has enabled firms to automate and accelerate many procedures previously done by hand. Linked system have also enabled easier account collection, statistical analysis and identification of demographic data Porters Five Model Industry Analysis The widely accepted and commonly used Porters five model industry analysis rests upon the industry dynamics which in turn are influenced by the forces of macro and micro environments. This analysis is not one of activity alone but an on-going process. These forces exercise relative power at a point of time and it is really important to identify which of these five forces are the key forces at operation and evolve a strategy to position itself to take advantage of the opportunities and over come the threats. Because of the dynamic nature of these forces the analysis is to be repeated on an on-going basis so as to deprive of the potential competitors to overtake , regain , sustain and improve the market share and growth as the situation demands. The threats from the New entrants , buyers and suppliers bargaining power , substitutes and competitive rivalry are analyzed and shown in Appendix II Porters 5 forces model suggests that when buyers exert a high degree of choice and are able to choose from a variety of substitutes product quality, price, product differentiation and branding are likely to become prevalent factors as concerns the success of a firm. As such this is likely to be common within the market MS operates as there is a high degree of competition incurred in direct and indirect forms meaning buyers (customers) will have a high degree of choice thus firms must cater to this in the manners outlined above. Additionally the fickle nature of the fashion industry i.e. product life cycle is low due to ever changing fashion trends means that a quick and efficient response to customer demand can critically affect the degree of success a firm experiences. Additionally an awareness of future environmental conditions can be of vital importance to a firms success as the importance of price, product quality branding and differentiation can vary greatly within different cir cumstances. I.e. during a period of recession price becomes a prevailing factor, which is likely to dictate customer choice. Whereas during a period of prosperity quality and brand become dominant factors. The Core Competences Critical Success factors and Competitive Advantage Core competences arises from the unique and distinctive way that M S builds, develops , integrates and deploys its resources and competences. It can be evaluated like this. M S has a clear customer focus. Because of the inbuilt , robust competences the uniqueness of M S cannot be easily imitated. With regard to its flexibility this is one area in which M S did not respond timely in adequate measure. They lagged behind other competitors in adapting to the changes in the market or industry conditions. The company has paid a bitter price for this laxity. The extent to which value is added to the product/service is quite is good. Finally, with respect to sustainability M S could not retain the tempo of its momentum and march even though it is still the market leader. The critical success factors and core competences are pictorially depicted and is shown in Appendix III. Competitive Advantage M S could attain competitive advantage by developing and implementing these distinctive resources capabilities and competences. The strategies adopted after the great fall of 1998 enabled M S to regain its lost territory. The competitive advantage of M S can be explained in terms of its reputation for quality ,its special relationships with its suppliers and its customers. M S has a very exacting but mutually profitable relationship with the suppliers. It demands high quality at reasonable cost and flexibility in return for large volume of business. Its relationship with the customers is based upon its reputation for good service , refunds , exchange of goods and high quality value for money goods. Real competitive advantages take longer to build and last longer. M S has the best brands on high street. The customers associates with the company with dependability and value for money. The employees are always a privileged lot resulting in their high involvement and commitment. In the end result it has a performance that is superior to most of its high street competitors.