Doing Business Framework: A Case Study on Sourcing from Russia

Author:Deepanker Sinhaa, Ram Singhb*

Abstract:
Today, the countries are moving towards borderless world, enabling flow of goods and services under less restrictive environment. The extent to which the flow is free is associated with different dimensions of “openness to trade” by different countries. These dimensions are broadly classified under tariff and non-tariff barrier for goods and services and General Agreement for Trade in Services (GATS) for services. However, goods not only move exclusively under buyer-seller transaction (that is exporting-importing mode), but also through buyer’s originating their supplies to their country by setting up of business (as subsidiary, own company or joint ventures) in the sellers’ country. This refers to buyers’ setting up business in sellers’s country to ensure an un-inhibited flow of goods. This is feasible based on the extent of ease of doing business (EODB) in a particular country. So far, the dimensions associated with EODB have been laid down by the World Bank, especially to measure the rank of each country in EODB. In this paper, a systematic literature review of the relevant dimensions has been carried out. The results show that EODB index computed by the World Bank misses out many of the salient dimensions. The study has been extended to compare Russia with India in the proposed framework incorporating all significant dimensions.

Keywords:Key Words: Doing Business Framework, Sourcing, GATS, EODB Doing Business Framework, Sourcing, GATS, EODB.

DOI:

International Journal of Trade & Commerce (Vol: 7 Issue:1)