International Business-I Business Studies - International Business-I

The exporter approaches his bank to obtain ______ once he received a confirmed order from the importer for the purpose of export production.

Which of the following documents is not required in connection with an import transaction?

Which one of the following is not a part of export documents?

At the final stage of export, relevant documents are submitted to the bank for the purpose of getting the payment from the bank which is called as:

In order to know whether the goods which an importer wishes to import are subject to import licensing or not, he needs to consult:

Define Mate's Receipt.

Mention first two steps involved in an export transaction.

Explain the term FOB.

When was WTO formed?

Mention any two major documents related to shipment for export transaction.

Mr. Gurcharan Singh Khanna, a resident of India wants to import heavy machinery and equipments from Mr. Jacob Lamb in Italy. As he is a new entrant in international trade.
You are requested to suggest him the various steps of import procedure that he needs to perform before placing an order.

Why did WTO establish? What are its objectives?

How does international trade help in stabilising the prices of a product?

What are the benefits of international trade to firms?

Who is a clearing agent?

An important aspect of business involves not only the international movements of goods and services, but also of capital, personnel, technology and intellectual property like patents, trademarks, know-how and copyrights.
Explain the scope of the aspect of business stated in above paragraph.

Mr. Amarjeet Kakkar wants to export Hyderabadi Pearls to Mr. David Tesinsky in Japan. Mr. David Tesinsky has asked for an enquiry regarding this from Mr. Amarjeet Kakkar. Mr. Amarjeet Kakkar sends a reply to this enquiry in the form of a quotation containing details of information about his products.
Mr. David Tesinsky has found the export price and other terms and conditions acceptable, so he prepares an indent containing a description of goods, their price and other important instructions. Once Mr. David Tesinsky sent the export order to Mr. Amarjeet Kakkar.Before exporting goods, it is mandatory for exporters to fulfill certain legal formalities.
Discuss the formalities involved in procuring an export license,

India enjoys a unique global position in terms of production of all commercially useful varieties of silk. India is the second largest producer of silk. With sericulture activities spread across 52,360 villages, the Indian silk industry is one of the largest generators of employment and foreign exchange for the country. The industry provides employment to over 8.25 million people in the country. The silk products exported include natural silk yarns, fabrics, made-ups, readymade garments, silk carpets and silk waste. The top ten importers of Indian silk and silk products were US, UK, China, UAE, Germany, Italy, Canada, France, Singapore and Hong Kong. On the basis of the aforesaid information about silk products, answer the following questions:
(a) Enumerate the two benefits available to the Indian business firms who are engaged in silk export.
(b) How do the different nations engaged in trade of silk stands to gain?

Designco India is one of the fastest growing handicrafts export company, offering customers every choice in terms of materials like wood, glass, cloth, metal and stone with multiple finishes. Designco provides sophisticated, one-stop-shop solutions to meet the buyer's specific needs and helps to create a platter of offerings. The most important innovators in the handicrafts exports market had recently developed a lot of Brass Chunari This product is considered auspicious during prayer rituals, religious ceremonies and festival celebration while offering prayers to God. Brass Chunari is decorated with multicolored stones, laces, patches, beads, pearls and decorated with brass. The company received an export order of these chunari from a Thai trader, since company has ready stock of brass chunari the other formalities need to be completed before reservation of shipping space.
On the basis of the aforesaid information about Designco India, answer the following questions:
(a) What are the various formalities that need to be completed by Designco before reservation of shipping space?
(b) State the document to be issued by shipping company on the receipt of request for reservation of shipping space.

India, known as the home of spices, boasts a long history of trading with the ancient civilisations of Rome and China. Today, Indian spices are the most sought-after globally, given their exquisite aroma, texture, taste and medicinal value. India is the world's largest producer, consumer and exporter of spices; the country produces about 75 of the 109 varieties and accounts for half of the global trading in spices.
Top spices produced in the country include pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, dill seed, garlic, tamarind, clove, and nutmeg among others Major importers of Indian spices are USA, China, Vietnam, UAE, Indonesia, Malaysia, UK, Sri Lanka, Saudi Arabia, and Germany.
On the basis of the aforesaid information about spices, answer the following questions:
(a) Enumerate the two benefits available to the Indian business firms who are engaged in spice export.
(b) How do the different nations engaged in trade of spices stands to gain?

Identify the documents highlighted in the following statements.
(a) The document prepared by the master of the ship acknowledging the receipt of good.
(b) The document issued as a proof of the fact that goods have been produced in the country mentioned on it.
(c) The document forwarded by the exporter to the importer after the shipment of goods.
(d) The document issued by the dock authority after receiving the goods from the exporters.
(e) The document required for sending the goods by air.
(f) Document which acts as a proof that goods of stated value and quantity are being brought into the country from abroad.

Tata Global Beverages Limited is an Indian non-alcoholic beverages company headquartered in Kolkata, West Bengal, India and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee.
Tata Global Beverages markets tea under the major brands Tata Tea, Tetley and Good Earth Teas. Tata Tea is the largest selling tea brand in India, Tetley is the largest selling tea brand in Canada and the second largest selling in the United Kingdom and the United States.
Tata Global Beverages manufactures 70 million kilograms of tea in India, controls 54 tea estates, ten tea blending and packaging factories and employs around 59,000 people. The company owns 51 tea estates in India and Sri Lanka, especially in Assam, West Bengal in eastern India and Kerala in the south. The company is the largest manufacturer of Assam tea and Darjeeling tea and the second-largest manufacturer of Ceylon tea.
On the basis of the aforesaid information about Tata Global Beverages Limited, answer the following questions:
(a) Identify the two kinds of trade Tata Global Beverages Limited is engaged in.
(b) Differentiate between the two kinds of trade Tata Global Beverages Limited is engaged in.

Kamal, Khan and David are partners in a firm engaged in the business of food products. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and David in food technology. One day there was a serious discussion between Khan and David regarding the nature of business. Khan argued that in a particular type of business due to differences in the languages, attitudes, social customs and business goals and practices of parties, it becomes relatively more difficult for parties to interact with one another and finalise business transactions. Kamal intervened and corrected both Khan and David about the nature of business with the help of his knowledge of Business Studies that it is wise to indulge in this type of business because producing solely for the purposes of local consumption severely restricts a nation's prospects for growth and employment.
On the basis of the aforesaid information, answer the following questions:
(a) About which type of business is the serious discussion between Khan and David is going on.
(b) Explain how Kamal would have been able to satisfy both Khan and David? State other reasons to support Kamal's viewpoint.

Akshay Kukreja was amateur cook and liked to try out international cuisines. But he found it very difficult to prepare non-traditional dishes as it was very difficult to find their ingredients. When he tried to solve this problem by ordering online, he realized that the websites were not reliable. In fact, he realized that many people were facing a similar problem. When he inherited some money from a distant relative, he decided to invest this amount in a business venture. He identified the ingredients that were ordered more frequently and entered into long term agreements with the suppliers from different countries and he started an online portal where people could order ingredients required for international cuisines. Once he obtains necessary foreign exchange and he placed his order.
Explain the steps that he needs to follow to complete the import procedure.

Soniya was settled in London. When she had a baby girl, she wanted to buy handknitted sweaters for her. She realized it was very difficult to find them there. Her friend Divya ran an NGO in Chennai that worked in Nochikuppam. Her NGO helped poor women to upgrade their skills that would enable them become economically independent. When Soniya discussed her problem with Divya, She realized that the sweaters knitted by the women associated with her NGO had a ready market in London. She formed a co-operative society along with poor women. Soniya started an online portal to secure orders and imported sweaters from Divya. Enlist the steps that need to be followed by Divya once she obtains an export license and arranges preshipment finance.

Identify the documents highlighted in the following statements:
(a) Agreement signed with the shipping company to enable to put goods on the ship.
(b) Document issued by the captain of the ship after loading the goods on the ship.
(c) Assured payment on the strength of a document issued by the importers bank.
(d) Document which authorises the bank to sell the goods in case of dishonour of bill.
(e) Document received in exchange of Mate's Receipt at the shipping affice.

Sheetal and Shilpi are close business friends engaged in a discussion on benefits trade.Shilpi feels trade between nations is highly beneficial while Sheetal feels an economy can only develop and grow if trade within the nation is strong. She also praised the supportive associations for playing a catalytic role in strengthening trade within the nation to make it an important part of economic activity.
On the basis of the aforesaid information, answer the following questions:
(i) Identify and explain the type of trade being supported by Sheetal and Shilpi.
(b) Enumerate the benefits of the type of trade highlighted by Shilpi.

Identify the documents highlighted in the following statements:
(a) Agreement signed with the shipping company to enable to put goods on the ship.
(b) Document issued by the captain of the ship after loading the goods on the ship.
(c) Assured payment on the strength of a document issued by the importers bank.
(d) Document which authorises the bank to sell the goods in case of dishonour of bill.
(e) Document received in exchange of Mate's Receipt at the shipping affice.

Sheetal and Shilpi are close business friends engaged in a discussion on benefits trade.Shilpi feels trade between nations is highly beneficial while Sheetal feels an economy can only develop and grow if trade within the nation is strong. She also praised the supportive associations for playing a catalytic role in strengthening trade within the nation to make it an important part of economic activity.
On the basis of the aforesaid information, answer the following questions:
(i) Identify and explain the type of trade being supported by Sheetal and Shilpi.
(b) Enumerate the benefits of the type of trade highlighted by Shilpi.