Question

Outline:

1. Import or Export (Globalized) of Product or Services –

Students are free to choose any product or service (any commodity) being exported or imported anywhere in the world. Students to nominate the product or Service they choose & Mode (Import or Export)

a. Motivation - Why is that chosen commodity being imported or exported?

b. Goal – Is the Trade long term or short term?

2. Business Lifecycle Summary - At Exporter’s End - (From Product to Shipment).

3. Business Lifecycle - At Importer’s End – (From Receiving to Consumption)

4. Trade Laws

5. Options & Alternates - Does the business have other importers or exporters available for that business?

6. Global Management

7. Conclusion - Students learning from the Global business practice & from this exercise.

8. Reference

Answer 1

1). Countries traded are india and Saudi Arabia

Goods imported to India from Saudi Arabia

Good is Crude oil

a) Motivation: Crude oil (Chosen commodity) is imported from Saudi Arabia to India due to lack of resources in India.This commodity is used for various uses in majority of industrial sector which helps in economic change

b) Goal: Long term goal - Long term goal because this product is not having base in India or nor produced due to unavailability of resources so need to be imported

2) Business life cycle summary - Exporters end ( From product to shipment )

1). Receipt of an enquiry

Here now exporting country that is India will make an enquiry with Saudi arabi about the goods their price and terms

2). Sending an quotation

Quotation will be sent based on the enquiry made regarding quantity ,quality ,price ,methods

3) Receiving an indent

Indent means order- order will be received from India to Saudi Arabia

4) obtaining code no and license

5) Collection or assembling of goods

6) Packing and marking of goods

7) Appointment of forwarding agent

Person who takes care of goods in importing country

8) Dispatch of goods to the port by road or railways

9) Formalities performed by forwarding agent

10)Obtaining relevant document

11) Preparation of export invoice

12) Securing payments

13) Sending advice / information of shipment

3) Business life cycle summary - Importers end

1) obtaining an code no. and license

2) obtaining foreign exchange

3)Placing an indent 4) Receipt of letter of advice

5) Obtaining shipping document

6)Appointment of clearing agent

7) Formalities

8) Taking delivery of goods

4) Trade laws

Export and import has trade laws from GATT since 1948

Embassy of India and Saudi Arabia will have trade laws

5) Options and alternatives -Not available because of scarcity of goods in India (Crude oil - petroleum product required to entire India the production made in Bombay high is not enough)

6) Global management - Global agencies like WTO takes care of managing trade activities along with co-operations like BRICS,NAFTA,SAFTA etc

7) Students learn the import and export procedure between countries adopted in International trade

8) References

M L Jhinghan - International Trade

Sumaati varma - International Business