India's foreign trade
June 2020 assignments
1. Explain how poor bilateral relationship between two
countries affect bilateral trade between the countries, take any one example
from recent incidents between India and other country.
Answer:
Foreign Trade of a country constitutes exports and imports. Exports are vital
to a developing economy as the capacity to import is limited by the capacity to
export because finally imports have to be paid for by exports. The growing
industrialization of a developing country necessitates increasing imports
because of high income elasticity of demand for imports and the
2. How does Balance of Payment (BoP) is crucial in
International Trade and Political relationship between the countries, explain
the concept with example of India and China or India and USA.
Answer:
Balance of payments (BOP) is one of the oldest and the most important
statistical statements for any country, especially the more open economies. The
BOP is ‘a systematic record of all economic transactions between the residents
of a given country and of the residents of the rest of the world in an
accounting period (viz. a year).’ The system of BOP accounting, some of the
concepts and terminologies used in the BOP expression and the interpretation of
the BOP categories are of utmost importance to any student of international
economics. Despite efforts by international organizations to secure uniformity
of classification and
3. Well established Indian cosmetics Manufacturing and
Marketing Company decided to expand their business boundaries through
International business.
a. If you being head of International business of company
how do you plan to make your entry in to new market overseas, explain with
stepwise market entry plan.
b. What are the probable entry barriers you may face any new
overseas market, explain how you will overcome those problems.
Answer:
a) Entry modes may vary from company to company or even for a single company
depending upon a variety of factors as discussed below:
● Size of the company – Generally, larger companies have large financial
resources and manpower skill to handle international operations in a
competitively better manner. Therefore, they enter the
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