International Business

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International Business
Ultimate way to superb business prospects
By Prafful Lathi Raunak Tripathi Rupal
toshniwal Ravi Depura Deepti Chundawat
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Meaning And Importance
Countries all over world are undergoing a
fundamental shift in the way they produce and
market various products and services.. Due to
increased cross border trade and investments
countries are no more isolated. The national
economies are increasingly becoming borderless
and getting integrated into the world
economy.Business in the present day is no longer
restricted to the boundaries of the domestic
country. This all have lead to international
business which has been described as broader term
which include the trade and production of goods
and services across frontiers. The fundamental
reason that support international business is
that each country cannot produce equally well or
cheaply all that they need .
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International And Domestic Business

• A international business differs from domestic
  business in following aspects
• Nationality of buyers and sellers
• Nationality of otherstakeholders
• Customer Heterogeneity across markets
• Difference in business systems and practices
• Political system and risks
• Business regulations and policies
• Currency used in business transactions

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Benefits of International Business

• Earning Of Foreign Exchange
• More Efficient Utilization Of Resources
• Improving Growth Prospects and Employment
  Potentials
• Increased standard of living
• Prospects for Higher profits
• Increased capacity Utilization
• Way out to intense competition in domestic market
• Improved Business Vision

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Ways of entry into I.B

• Exporting And Importing
• Contract Manufacturing
• Licensing And Franchising
• Joint Venture
• Wholly Owned Subsidiaries

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Export Procedure
Steps involved in a typical export transaction
are as following (1)receipt of enquiry and
sending quotations (2)Receipt of order or
indent (3)Assessing importers credit worthiness
of importer and securing a guarantee for
payments (4) Obtaining export license (5)
Obtaining Pre-shipment finance (6)production or
procurement of goods (7) Pre-shipment
inspection (8) excise clearance
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Export Procedure
(9) Obtaining certificate of origin (10)
Reservation of shipping space (11) Packing and
forwarding (12) Insurance of goods (13) Custom
Clearance (14) Obtaining Mates receipt (15)
payment of freight and issuance of bill of lading
(16)Preparation Of Invoice (17) Securing
Payments
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Import Procedure
Steps involved in typical business transactions
are (1)Trade Enquiry (2) Procurement of Import
license (3) Obtaining foreign exchange (4)
Placing order or indent (5) Obtaining Letter of
credit (6) Arranging for finance (7) Receipt of
import documents (8) Retirement of import
documents (9) Arrival of goods (10) Custom
clearance and release of goods
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Documents needed in export trade
Important documents needed are (1)Export Invoice
(2)Packing List (3)Certificate of
origin (4)Certificate of inspection (5)Mates
Receipt (6)Shipping Bill (7)Bill of
lading (8)Airway Bill (9) Marine insurance
policy (10Cart ticket
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Important documents in import trade
Important documents used in import trade (1)Trade
enquiry (2) Performa Invoice (3) Import trade or
indent (4) Letter of credit (5) Shipment
advice (6) Bill of lading (7) Bill of
exchange (8) Airway Bill (9) Import general
manifest (10) Usance draft. (11) Dock challan
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Foreign Trade Promotion Schemes

• Some of the schemes introduced are
• Duty Drawback Scheme
• Export manufacturing bond scheme
• Exemption from payment of sales tax
• Advance license scheme
• Export promotion capital goods scheme
• Scheme for recognizing export firms as export
  house
• Export Of Services
• Export Finance
• Export processing zones

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Organisational support

• Some of the organizations setup for trade
  promotion are
• Indian trade promotion organization ITPO
• Indian institute of foreign trade
• Indian institute of packaging
• International finance corporation
• International development association
• Multinational investment guarantee agency
• International monetary fund
• World trade organization

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THE END
Destination Of I.B.
Success