NEED FOR INTERNATIONAL BUSINESS

More and more firms around the world are going global, including:
Manufacturing

firms Service companies (i.e. banks, insurance, consulting firms) Art, film, and music companies

NEED FOR INTERNATIONAL BUSINESS

International business:

causes the flow of ideas, services, and capital across the world offers consumers new choices permits the acquisition of a wider variety of products facilitates the mobility of labor, capital, and technology provides challenging employment opportunities reallocates resources, makes preferential choices, and shifts activities to a global level
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WHAT IS INTERNATIONAL BUSINESS?

International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations.

EXPORT PROCEDURE

Receipt of enquiry and sending quotations Receipt of order or indent Assessing importers credit worthiness and securing guarantee for payments Obtaining export license Obtaining pre-shipment finance Production or procurement of goods Pre shipment inspection Excise clearance Obtaining certificate of origin Reservation of shipping space packing and forwarding Insurance of goods Customs clearance obtaining mates receipt Payments of freight and issuance of bill of lading Preparation of invoice Securing payment

IMPORT PROCEDURE

Trade enquiry Procurement of import license Import of foreign exchange Placing order or indent Obtaining letter or credit Arranging for finance Receipt of shipment advice Retirement of import documents Arrival of goods Customs clearance and release of goods

FOREIGN TRADE PROMOTION MEASURES AND SCHEMES

Duty drawback scheme Export manufacturing under bond scheme Exemption from payment of sales tax Advance license scheme Export promotion capital goods scheme Scheme of recognizing export firms as export house ,trading house and superstar trading house Export of services Export finance Export processing zones 100 per cent export oriented units

DEPARTMENT OF COMMERCE
It is an apex body responsible for the countrys external trade and all matters connected with it It frames the import and export policy of the country It helps in increasing commercial relations with other countries , state trading , export promotional measures and the development

EXPORT PROMOTION COUNCILS

They are the non profit organizations registered with companies act

Their objective is to promote and develop the countrys exports of particular products falling under their jurisdiction

COMMODITY BOARDS They have been specially established by the government of India for the development of production of traditional commodities and their exports There are seven commodity boards in India : coffee board, rubber board , tobacco board, spice board,cntal silk board, tea board and coir board

EXPORT INSPECTION COUNCIL It was setup by the government of India under section 3 of the export quality control and inspection act 1963 It aims at sound development of external trade through quality control

Barring some all the commodities destined for exports must be passed by EIC

INTERNATIONAL TRADE PROMOTION ORGANIZATION (ITPO)

ITPO was setup on 1st January 1992 under the companies act 1956 under the ministry of commerce It was formed by merging of two erstwhile agencies trade development authority and trade fair authority of India Its headquarters is at new Delhi It helps export firms participate in international fairs and exhibitions both within the country and outside

INDIAN INSTITUTE OF FOREIGN TRADE (IIFT)

It is an institution that was setup in 1963 by the government of India

Their primary objective is professionalizing the countrys foreign trade management

INDIAN INSTITUTE OF PACKAGING (IIP) It was setup as a national institute jointly by the ministry of commerce ,the government of India and the Indian packaging industries Is headquarters is situated at Mumbai It is training cum research institute pertaining to packaging and testing units

STATE TRADING ORGANIZATIONS

It was setup in may 1956. The main objective of STC is to simulate trade , primarily export trade among different trading partners of the world

WORLD BANK


The world bank was initially called International Bank for Reconstruction and Development (IBRD). It is designed to finance productive projects for the economic development of member nations.

OBJECTIVES OF WORLD BANK

The main objectives of World Bank are as follows:  Protecting the environment  Investing in basic health and education and social development  Strengthening the ability of the government to deliver quality services.

OBJECTIVES OF WORLD BANK

The main objectives of World Bank are as follows:  Protecting the environment  Investing in basic health and education and social development  Strengthening the ability of the government to deliver quality services.

OBJECTIVES OF WORLD BANK

The main objectives of World Bank are as follows:  Protecting the environment  Investing in basic health and education and social development  Strengthening the ability of the government to deliver quality services.

INTERNATIONAL DEVELOPMENT ASSOCIATION



Set up in 1960, affiliate of the world bank. Established primarily to provide finance to the less developed member countries on a soft loan basis. Also called Soft Loan Window of the IBRD.

INTERNATIONAL FINANCE CORPRATION

 

Was established in July 1956. Main objective: To provide finance to the private sector of developing countries. Also is affiliate of world bank, but has its own separate legal entity.

MULTINATIONAL INVESTMENT GUARANTEE AGENCY

It was established in April 1988 to supplement the functions of the World Bank and IFC.


 

To encourage flow of direct foreign investment into the less developed member countries. To provide promotional and advisory services. To establish credibility.

INTERNATIONAL MONETARY FUND

IMF was a result of the Bretton Wood Conference and came into existence in 1947.Its main objectives are as follows:
 

 

Promoting international monetary cooperation. Expansion and balanced growth of international trade. Ensuring exchange rate stability. To solve disequilibrium of balance of payments.

FUNCTIONS OF IMF

Some important functions of IMF include:

 

Acting as a short-term credit institution. Providing machinery for the orderly adjustment of exchange rates. Acting as a lending institution of foreign currency and current transaction. Determining the value of a countrys currency and altering it, if needed, so as to bring about an orderly adjustment of exchange rates of member countries.

WORLD TRADE ORGANISATION (WTO)



WTO came into existence as an international organisation for monitoring multi lateral trade in the year 1995. It replaced GAAT (General Agreement on Trade and Tariffs).

OBJECTIVES OF WTO
  

 

To promote multi lateral trade. Raise the standard of living of people in world. To help the developing countries to get greater share in international trade. To reduce tariff and non-tariff barriers. To bring about a linkage between trade policy, environmental protection and sustainable development.

FUNCTIONS OF WTO


WTO agreements cover trade in goods and services, trade in intellectual property rights (TRIPS), trade in investment measures (TRIMS), general agreement on trade and services (GATS), agreements on agriculture (AA) and, multi-fibre treaty. It involves in implementation, administration and operation of all the above agreements.

BENEFITS OF WTO
Helps promote international peace and facilitates international business.  All disputes between member nationsare settled with mutual consultations .  Rules make international trade and relations very smooth and predictable


WTO AGREEMENTS
   

Agreements Forming Part Of GATT Agreements On Agriculture General Agreement On Trade In Services (GATS) Agreement On Trade Related Aspects Of Intellectual Property Rights (TRIPS).

BIBLOGRAPHY

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