It Pays to Hire Women in Countries That Won't

Published: October 11, 2010

Feature: Research & Ideas

South Korean companies don't hire many women, no matter how qualified. So multinationals are moving in to take
advantage of this rich hiring opportunity, according to new research by professor Jordan Siegel.

Surviving the Global Financial Crisis: Foreign Direct Investment and

Establishment Performance
Authors: Laura Alfaro and Maggie
Chen

Published: July 8, 2010

Paper Release Date: June 2010

Feature: Working Papers

In 2008 and 2009 the world economy suffered the deepest global financial crisis since World War II. Countries
around the globe witnessed major declines in output, employment, and trade, and world trade volume plummeted
by more than 40 percent in the second half of 2008. Using a new dataset that reports operational activities of over
12 million establishments worldwide before and after 2008, HBS professor Laura Alfaro and George Washington
University professor Maggie Chen study how multinationals around the world responded to the crisis relative to
local firms, and the underlying mechanisms of those differential responses. By taking into account establishments
both at the epicenter and on the periphery of the crisis, their analysis also considers multinationals' role as an
international linkage in transmitting economic shocks.

Strategy and Execution for Emerging Markets

Q&A with: Tarun Khanna and Krishna G.
Palepu

Published: June 21, 2010

Feature: Research & Ideas

How can multinationals, entrepreneurs, and investors identify and respond to new challenges and opportunities
around the world? In this Q&A, HBS professors and strategy experts Tarun Khanna and Krishna G. Palepu offer
a practical framework for succeeding in emerging markets. Plus: Book excerpt with action items.

Multinational Strategies and Developing Countries in Historical

Perspective
Author: Geoffrey Jones

Published: April 8, 2010

Paper Release Date: March 2010

Feature: Working Papers

HBS professor Geoffrey Jones offers a historical analysis of the strategies of multinationals from developed
countries in developing countries. His central argument, that strategies were shaped by the trade-off between
opportunity and risk, highlights how three broad environmental factors determined the trade-off. The first was the
prevailing political economy, including the policies of both host and home governments, and the international legal
framework. The second was the market and resources of the host country. The third was competition from local
firms. Jones explores the impact of these factors on corporate strategies during the three eras in the modern
history of globalization from the nineteenth century until the present day. He argues that the performance of
specific multinationals depended on the extent to which their internal capabilities enabled them to respond to these
external opportunities and threats. The paper highlights in particular the changing nature of political risk faced by
multinationals. The era of expropriation has, for the moment, largely passed, but multinationals now experience
new kinds of policy risk, and new forms of home country political risk also, such as the Alien Tort Claims Act in the
United States.

HBS Cases: Looking Behind Google's Stand in China

Q&A with: John A. Quelch

Published: February 8, 2010

Feature: Lessons from the

Classroom

Google's threat to pull out of China is either a blow for Internet freedom or cover for a failed business strategy,
depending on with whom you talk. Professor John A. Quelch looks behind the headlines in a new case.

Published in 2009

The Global Agglomeration of Multinational Firms

Authors: Laura Alfaro and Maggie Chen

Published: December 23, 2009

Paper Release Date: December 2009, revised April 2010

Feature: Working Papers

(Paper formerly titled "The Global Networks of Multinational Firms.") When and why do multinationals group
together overseas? Do they agglomerate in the same fashion abroad as they do at home? An answer to these
questions is central to the long-standing debate over the consequences of foreign direct investment (FDI). It is
critical to understand interdependencies of multinational networks and how multinationals influence one another in
their activities at home and overseas. HBS professor Laura Alfaro and George Washington University professor
Maggie Chen examine the global network of multinationals and study the significance and causes of multinational
agglomeration. Their results provide further evidence of the increasing separation of headquarters services and
production activities within multinational firms. The differential specialization of headquarters and subsidiaries leads
to distinct patterns of agglomeration.

Walking Through Jelly: Language Proficiency, Emotions, and Disrupted

Collaboration in Global Work
Authors: Tsedal Neeley, Pamela J. Hinds, and Catherine Durnell Cramton

Published: November 12, 2009

Paper Release Date: June 2009

Feature: Working Papers

As organizations increasingly globalize, individuals are required to collaborate with coworkers across international
borders. Many organizations are mandating English as the lingua franca, or common language, regardless of the
location of their headquarters, to facilitate collaboration across national and linguistic boundaries. What is the
emotional impact of lingua franca adoption on native and nonnative speakers who work closely together and often
across national boundaries? This study examines the communication experience for native and nonnative English
speakers in an organization that mandates English as the lingua franca for everyday use, and the impact of the
lingua franca on collaboration among globally distributed coworkers. HBS professor Tsedal Neeley and coauthors
describe in detail how emotions and actions were intertwined and evolved recursively as coworkers attempted to
release themselves from unwanted negative emotions and inadvertently acted in ways that transferred negative
experiences to their distant coworkers. Their findings have implications for managers who are charged with
overseeing internationally distributed projects.

Firsthand Experience and the Subsequent Role of Reflected Knowledge

in Cultivating Trust in Global Collaboration
Authors: Mark Mortensen and Tsedal
Neeley

Published: July 29, 2009

Paper Release Date: May 2009

Feature: Working Papers

How can workers better collaborate across vast geographical distances? Distributed collaboration—in which
employees work with, and meaningfully depend on, distant colleagues on a day-to-day basis—allows firms to
leverage their intellectual capital, enhance work unit performance, face ever-changing customer demands more
fluidly, and gain competitive advantage in a dynamic marketplace. Research over the last decade, however, has
provided mounting evidence that while global collaboration is a necessary strategic choice for an ever-increasing
number of organizations, socio-demographic, contextual, and temporal barriers engender many interpersonal
challenges for distant coworkers and are likely to adversely affect trust between and among workers across sites.
In this paper that examines employee relations at a multinational organization, HBS professor Tsedal Beyene and
MIT Sloan School of Management professor Mark Mortensen find that firsthand experience in global collaborations
is a crucial means of engendering trust from shared knowledge among coworkers. Their findings reinforce the
important role of others' perceptions in our own self-definition, and suggest a means of addressing some of the
problems that arise in cross-cultural global collaborations.

Business Summit: Managing Human Capital—Global Trends and

Challenges
Published: July 21, 2009

Feature: HBS Business Summit

Human capital needed for globalization is lacking. Progress is required in important areas such as elevating more
women to leadership positions, according to panelists at the HBS Business Summit.

Where is Home for the Global Firm?

Q&A with: Mihir A. Desai

Published: January 26, 2009

Feature: Research & Ideas

Global markets are changing the relationship between firms and nation-states in important ways, says HBS
professor Mihir A. Desai. His new working paper, "The Decentering of the Global Firm," offers a practical
framework for business leaders to think strategically about where to locate their company's financial and legal
homes, and managerial talent. Q&A with Desai.

The Decentering of the Global Firm

Author: Mihir A. Desai

Published: January 26, 2009

Paper Release Date: October 2008

Feature: Working Papers

Firms such as Caterpillar are typically considered American companies by virtue of history while Honda, for
example, is regarded as a Japanese company. However, the archetypal multinational firm with a particular national
identity and a corporate headquarters fixed in one country is becoming obsolete as firms continue to maximize the
opportunities created by global markets. The defining characteristics of what makes a firm belong to a country—
where it is incorporated, where it is listed, the nationality of its investor base, the location of its headquarters
functions—are no longer bound to one country. Why are these changes taking place, and what are their
consequences? This paper places the increasing mobility of corporate identities within the broader setting of
transformations to the "shape" of global firms over the last half century.
Published in 2008

Podcast: The Potential Partnership of India and China

Published: February 4, 2008

Feature: Research &

Ideas

Even without cooperation between them, China and India appear headed toward economic superpower status in
the coming decades. But what if they worked together? In this podcast, Harvard Business School professor Tarun
Khanna discusses the possibility of Sino-Indian cooperation and its impact on global business.

Published in 2007

HBS Cases: Using Investor Relations Proactively

Q&A with: Gregory S. Miller, Vincent Dessain, and Daniela
Beyersdorfer

Published: August 20, 2007

Feature: Research & Ideas

Investor relations has a delicate balancing act. It communicates with stakeholders, of course, but can also help
employees take a step back and analyze their firm as outsiders do. Harvard Business School's Gregory S. Miller,
Vincent Dessain, and Daniela Beyersdorfer explain where IR is going, with energy giants BP and Total leading
the way.

Risky Business? Protecting Foreign Investments

Q&A with: Louis T. Wells

Published: March 5, 2007

Feature: Research &

Ideas

After a string of forced nationalizations of private enterprises in the 1960s and 1970s, the pendulum swung back
and companies were again encouraged by host countries to build and run major infrastructure projects such as
power and water. But a set of new property protections has done little to manage the risk in many of these
politically unstable environments. Professor Louis T. Wells, coauthor of a new book on making foreign investment
safe, discusses the current landscape.

Published in 2006

Report From Egypt: Studying Global Influences

Published: September 27, 2006
Feature: Report from the Field

On a recent trip to Cairo, Rosabeth Moss Kanter studied three international companies to better understand the
effects of globalization on them and the surrounding region. In this report, she looks at current business trends in
Egypt, including the increasing privatization of state-run businesses.

Has Globalization Reached Its Peak?

Published: April 3, 2006

Feature: What Do YOU Think?

Forum: CLOSED | 26 Comments

posted

A new book argues that globalization has led corporations to outsource too much of their work and, more
important, their intellectual capital. What with the increasing fluidity of labor markets, is it all too much for global
managers to handle?

Published in 2005

What's the Future of Globally Organized Labor?

Published: October 3, 2005

Feature: What Do YOU Think?

Forum: CLOSED | 11 Comments

posted

There’s an ongoing story of fragmentation in the union movement in North America. Will the concept of cooperation
and individual sacrifice for the common good work in a global labor market populated by large multinational
employers?

Restoring a Global Economy, 1950–1980

Published: August 22, 2005

Feature: Research &

Ideas

In his recent book Multinationals and Global Capitalism, professor Geoffrey Jones dissects the influence of
multinationals on the world economy. This excerpt recalls the rebuilding of the global economy following World War
II.
The New International Style of Management
Published: July 11, 2005

Feature: Research &

Ideas

Today's transnational road warriors and the businesses they work for are forging an international style of business,
say Harvard Business School faculty and alumni. Do you speak their language?

Should I Pay the Bribe?

Q&A with: Rafael M. Di Tella

Published: March 28, 2005

Feature: Research & Ideas

How should you handle corruption in your markets? On the heels of a recent Harvard Business Review fictional case
study on corruption, HBS professor Rafael Di Tella lays out the not-so-black-and-white issues in this Q&A.

Viewing 1-20 of 36 Articles View All

http://www.economist.com/research/articlesbysubject/display.cfm?id=423172

Studies/Surveys/Reports
In India, various agencies and organisations conduct studies and surveys as well as publish reports on a
regular basis covering diverse aspects of the economy. Each research and publication focuses on a particular
section of the country and analyses its performance and happenings.
Reserve Bank of India (RBI) is the most important organisation which publishes information and data on
all sectors of the economy in its annual, quarterly, monthly, weekly and occasional publications. They
include:-
• Annual report is a statutory document relating to the financial year of the Reserve Bank (July to
June), released every year in late August. It is the statement of the Board of Directors on the state
of the economy and on the balance sheet of the Reserve Bank. It also presents an assessment and
prospects of the Indian economy.
• Report on Trend and Progress of Banking in India is also a statutory publication produced
annually to review the policies and performance of the financial sector for the preceding year. The
publication, covering period from April to March, is generally released around November/December.
• Report on Currency and Finance is an annual document which dwells around a particular theme
and presents a detailed economic analysis of the issues related to the theme. Since the publication
is released around December, it also serves the purpose of presenting a mid-year review of the
economy.
• Handbook of Statistics on Indian Economy is a major initiative by the Reserve Bank aimed at
 improving data dissemination by providing a useful storehouse of statistical information at one
place. The publication provides time-series data (annual/quarterly/monthly/fortnightly/daily)
pertaining to a broad spectrum of economic variables, including data on national income, output,
prices, money, banking, financial markets, public finance, trade and balance of payments.
• State Finances : A Study of Budgets is a publication which provides a comprehensive analytical
assessment of the finances of the State Governments.
• Macroeconomic and Monetary Developments provides an analytical overview of macroeconomic
and monetary developments during the year under review. The publication serves as a backdrop
and rationale of the monetary policy for the year.
• Statistical Tables relating to Banks in India is an annual publication containing comprehensive
data relating to the commercial banking sector. It covers balance sheet information as well as
performance indicators of each commercial bank in India including those registered abroad.
• Basic Statistical Returns is another data-oriented publication which presents comprehensive data
on number of offices, employees, deposits and credit as per occupation of scheduled commercial
banks.
• RBI Bulletin is a monthly publication released in the first week of every month. It publishes
analytical articles based on data collected by the Reserve Bank and carries speeches of the
Governor, Deputy Governors and Executive Directors. Other useful inclusions in the Bulletin are
important press releases and circulars issued by different departments of the Reserve Bank and
data relating to economy, finance and banking.
• Weekly Statistical Supplement to the RBI Bulletin presents the weekly balance sheet of the
Reserve Bank and other developments relating to financial, commodity and bullion markets. This is
published on every Friday.
'Economic Division' of the Ministry of Finance examines trends in the economy and undertakes techno-
economic studies all of which helps to keep a close watch on economic developments, both internally and
externally. It also issues selected economic indicators on monthly basis and prepares Economic Survey on
an annual basis. The economic survey reviews the major developments and trends in the economy for a
given year and brings out the guidelines and considerations relevant for formulation of budgetary and
economic policies for the coming year.
• Economic Survey 2006-2007
• Previous Economic Surveys
• Monthly Economic Report
Ministry of Statistics and Programme Implementation is the apex organization for disseminating
reliable and credible statistics consistent with international standards. For this purpose, the Ministry has a
'Statistical Wing' which consists of Central Statistical Organisation (CSO) and National Sample Survey
Organisation (NSSO).
Central Statistical Organisation (CSO) is responsible for coordination of statistical activities in the
country and maintaining statistical standards. Its activities include National Income Accounting; conduct of
Annual Survey of Industries, Economic Censuses and its follow up surveys, compilation of Index of Industrial
Production (IIP), as well as Consumer Price Indices for Urban Non-Manual Employees, etc.
• National Accounts Division : Press release & Statements
• CSO : Reports & Publications
• IIP Report
• Manual on Compilation of Index of WPI
• Research Studies
National Sample Survey Organisation (NSSO) carries out socio-economic surveys, undertakes field
work for the Annual Survey of Industries and follow-up surveys of Economic Census, sample checks on area
enumeration and crop estimation surveys and prepares the urban frames useful in drawing of urban
samples, besides collection of price data from rural and urban sectors. The NSSO has four divisions, namely,
Survey Design and Research Division (SDRD), Field Operations Division (FOD), Data Processing Division
(DPD) and Coordination & Publication Division (CPD).
 • NSSO : Reports & Publications
• Socio-Economic Surveys
• Price Collection Survey
• Annual Survey of Industries
• Agriculture Statistics Survey
• Urban Frame Survey

Banking and capital markets

Banking and capital markets CEOs are focusing on the ‘three Rs’: risk,
regulation and reputation

Staying close to home

Most banking CEOs plan to focus on penetrating their existing markets more effectively over the next 12 months
largest global banks are also trying to expand geographically; they operate in mature markets where taking marke
share from competitors is slow, expensive and unlikely to be as profitable as entering new, under-banked market
emerging markets endured their own crisis a decade ago and are in good shape to facilitate growth.
Putting risk at the top of the agenda
Banking CEOs are much more likely than their peers in other industries to be putting more emphasis on risk
management – particularly, allocating resources to risk-related information gathering and analysis, integrating ris
management with their business units, reassessing their risk tolerance and preparing for systemic risk and low-
probability, high-impact events. Most banks already spend a lot of time on risk management, but some of them d
yet have the right balance between the executive and board or the right information. Such banks need to re-engin
their strategies, systems and processes.
Regulators require more attention
Regulation of the banking sector has not increased dramatically in the wake of the economic crisis, but oversight
certainly become more thorough and most banks are re-assessing how to comply with the existing rules. This exp
why 73 percent of banking CEOs say their boards have become ‘more’ or ‘significantly more’ engaged in ensuri
regulatory compliance (compared with 52 percent of the total survey sample). Some banks have a good relations
with their main domestic regulators, but have been slower to engage with regulators in other jurisdictions, which
key issue, given the divergence of regulatory outcomes and a move to more local provisions.
Rebuilding the reputation
Thirty-five percent of banking CEOs – more than four times the overall average – believe public trust in their ind
has declined ‘significantly’ as a result of the economic crisis. So it makes sense that banking CEOs are also more
to be initiating strategies to measure and manage their organisations’ reputations, including media relations and
investor relations programmes. However, the critical public and political reaction to the setting of bonuses for 20
suggests that further efforts are required.
People, people, people
Banking CEOs are more concerned about the availability of key skills than many of their peers in other sectors.
Although they recognise the need to keep pay under control, they are also keen to attract new talent. People with
sound understanding of complicated businesses that manage billions or trillions of dollars’ worth of assets are at
premium and, since there are only a handful of very large banks, few training grounds exist. So competition for s
people will be as fierce as ever.

RBI tightens norms for bank financing of promoters contribution

September 27, 2010:

According to existing Reserve Bank of India guidelines, Bank Finance against Shares and
Debentures, promoters contribution towards the equity capital of a company should come from their
own resources and banks should not normally grant advances to take up shares of other companies.

However banks are allowed to extend financial assistance to Indian companies for acquisition of equity
in overseas joint ventures / wholly owned subsidiaries or in other overseas companies
Also banks are allowed to extend financial assistance to successful bidders for acquisition of shares of
the PSUs under the Government of India's disinvestment programme.

In it's notification dated 27th Sept 2010, RBI has advised that the above mentioned restriction on grant of
bank advances for financing promoters contribution towards equity capital would also extend to bank
finance to activities related to such acquisitions like payment of non compete fee, etc.

These restrictions would also be applicable to bank finance to such activities by overseas
branches/subsidiaries of Indian banks.

http://www.banknetindia.com/banking/10914.htm

Collection of third party account payee cheques – Prohibition on crediting

proceeds to third party accounts

October 1, 2010:

The practice of collection of cheques crossed ‘account payee’ through third party accounts (of co-
operative credit societies) is not permissible. However, to facilitate collection of cheques from a payment
system angle, sub-members of the clearing houses may collect the cheques of their customers for the
credit to their accounts through the sponsor member, under certain circumstances.
Reserve Bank of India has notified that collecting banks may consider collecting account payee cheques
drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are co-operative
credit societies, if the payees of such cheques are the constituents of such co-operative credit societies.
While collecting the cheques as aforesaid, banks should have a clear representation in writing given by
the co-operative credit societies concerned that, upon realization, the proceeds of the cheques will be
credited only to the account of the member of the co-operative credit society who is the payee named in
the cheque.

However, RBI has clarified that in the event of a claim by the true owner of the cheque, the rights of the
true owner of the cheque are not in any manner affected and banks will have to establish that they acted
in good faith and without negligence while collecting the cheque in question

http://www.banknetindia.com/banking/thirdparty10.htm

Has Banking Technology improved productivity and efficiency of Banks in India?

Indian banks have made huge investments in modernising their IT infrastructure during the
past 10 years. But the question remains whether Banking Technology has improved
productivity and efficiency of Banks in India. Improvements in efficiency of the banking
system can be reflected by a reduction in operating expenditure, interest spread and cost of
intermediation in general.

To quote Dr K. C. Chakrabarty, Deputy Governor, Reserve Bank of India- “The Net Interest
Margin of banks has not reduced much; especially when the structure of business has not
changed. There is enough empirical evidence to show that the cost of small transactions has
not gone down. Unless low-value transactions are not cost-effectively done, it is not going
to impact efficiency drastically. The deposit and advances per account has shown a rising
trend which signifies that the rise in business is not due to acquisition of customers on the
lower end of the pyramid. The intermediation costs of banks in India still tend to be higher
than those in developed banking markets. Thus, the penetration has to increase and the
cost per transaction has to decrease. “

Banks need to leverage on IT to develop comprehensive Customer Relationship

Management (CRM) techniques to increase the volume, quality and profitability of business.
While operational CRM would help banks streamline their delivery channels, CRM packed
with the power of Business Intelligence would provide the banks with more actionable
information for enhanced decision making.

According to Mr Anurag Khanna, CMD, Banknet Group, Banknet's Summit on 24th Sept
2010 at Mumbai will help in understanding how to maximize and standardize the use of
existing technologies and implement IT most effectively & efficiently and reduce costs.

6th Edition of Bank Tech Summit on 24th Sept 2010 at Mumbai will on "New Technologies"
i.e. innovative & emerging technologies which can help in creating secure technology
platforms, increasing customer service levels, financial risk modeling, building multiple
platform applications & most importantly - conserving the environment and lowering costs.

SUMMIT SESSIONS
ECO PANEL - "TOWARDS GREENER BANKING TECHNOLOGIES"
*POWER PANEL - "BANKING TECHNOLOGY & APPLICATIONS - CHALLENGES & TRENDS"
MASTER CLASS SESSION - "CLOUD COMPUTING" STRATEGY SESSION - "SOCIAL MEDIA
TECHNOLOGIES & APPLICATIONS - NEED FOR A NEW STRATEGY"

For more on 6th Bank Tech Summit....click here And contact us on

conference@banknetindia.com