IMT-19

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IMT-19

Notes:

a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.

b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IVth(Case Study) must be sent together.

c. Submit the assignments in IMT CDL H.O. along with the assignments Question Papers for evaluation .

d. Only hand written assignments shall be accepted.

A. First Set of Assignments 5 Questions, each question carries 1 marks.

B. Second Set of Assignments 5 Questions, each question carries 1 marks.

C. Third Set of Assignments 5 Questions, each question carries 1 marks. Confine your answers to 150 to 200 Words.

D. Forth Set of Assignments Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

SECTION - A

Q. 1. What are the objectives of Foreign Trade Policy (FTP: 2009 – 14) of India?

Answer: The policy aims at developing export potential, improving export performance, boosting foreign trade and earning valuable foreign exchange. FTP assumes great significance this year as India's exports have been battered by the global recession. A fall in exports has led to the closure of several small- and medium-scale export-oriented units, resulting in large-scale unemployment.

Q. 2. Briefly describe the major steps taken for liberalisation of trade in India.

Answer: Liberalization refers to laws or rules being liberalized, or relaxed, by a government. Economic liberalization is generally defined as the loosening of government regulations in a country to allow for private sector companies to operate business transactions with fewer restrictions. In relation to developing countries, this term refers to opening of their economic borders to multinationals and foreign investment.

The major steps taken for liberalisation

Q. 3. Describe the incentives given to exporters under Market Development Assistance (MDA) Market Access Initiative (MAI) to promote exports from Indian economy.

Answer: Export Promotion continues to be a major thrust area for the Government. In view of the prevailing macro economic situation with emphasis on exports and to facilitate various measures being undertaken to stimulate and diversify the country's export trade, Marketing Development Assistance (

Q. 4. Critically analyse the impact of globalization on foreign trade of Indian economy?

Answer: Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making

Q. 5. Distinguish between (a) Physical and deemed exports (b) Countertrade and consignment sale.

Answer:(a) Physical and deemed exports

If an exports through a merchant exporter or manufacturer export, we can see the Difference between Deemed exporters export product tangibly. But there are many servicing industry where we cannot see the product physically, but helps to earn foreign exchange.In deemed exports, goods supplied do not

SECTION – B

Q. 1. Describe the features of Duty Exemption and Duty Remission Scheme.

Answer: The Duty Exemption Scheme enables import of inputs required for export production. The Duty Remission Scheme enables post export replenishment/ remission of duty on inputs used in the export product.

An Advance Licence is issued under Duty

Q. 2. Why is India facing a high current account deficit since last five years? How can it be controlled?

Answer:A look at the trend in savings rate brings forth the reasons behind the bulge. A gap between savings and investment leads to a rise in current   account deficit. Essentially, it means that if domestically available

Q. 3. Briefly describe the features of Export Promotion Capital Goods Scheme.

Answer: The Export Promotion Capital Goods (EPCG) scheme was one of the several export-promotion initiatives launched by the government in the early '90s. The basic purpose of the scheme was to allow exporters to import machinery and equipment at affordable prices so that they can

Q. 4. What is the Market Linked Focus Product Scheme (MLFPS)? State the incentive given under it during the FTP: 2009 – 14.

Answer:In the wake of global economic slowdown, India’s merchandise exports faced significant adverse impact. Exports, which had grown by 48.1% during April to September, 2008, suffered a decline during the next 12 months from October, 2008 to September, 2009, due to the shrinkage of the demand worldwide

Q. 5. Compare current composition of export and imports of the Indian economy with 1950s.

Answer:Foreign Trade is one of the significant macro fundamental variable of an economy. India till recently was predominantly a primary goods exporting and mainly an industrial goods importing country.

SECTION – C

Q. 1. Describe the role of Indian Trade Promotion Organisation (ITPO) in export promotion.

Answer: The mandate of the Department of Commerce is regulation, development and promotion of India’s international trade and commerce through formulation of appropriate international trade & commercial policy and implementation of the various provisions thereof. The basic role of the Department is to

Q. 2. How far have special economic zones (SEZs) helped in promotion of exports in India?

Answer:The Special Economic Zones Policy was announced in April 2000 with the objective of making the Special Economic Zones an engine for economic growth, supported by quality infrastructure and an attractive fiscal package both at the Central and State level with a single window clearance. The SEZ concept

Q. 3. Do you think FDI should be allowed in multi-brand retail in India? Why?

Answer:India’s decision to allow foreign direct investment (FDI) in multi-brand retail towards the end of 2012 and its FDI policy modified in April 2013 put the country back on the retailing map of the world. However, this is not the first time that India has invited global retailers to set up their

Q. 4. Describe the measures taken in the Foreign Trade Policy (2009 – 14) for promotion of marine exports.

Answer:With a view to continously increasing our percentage share of global trade and expanding employment opportunities, certain special focus initiatives have been identified/continued for Market Diversification, Technological Upgradation, Support to status holders, Agriculture, Handlooms,

Q. 5. What privileges are given to the Star Export Houses?

Answer:The objective of the scheme is to recognise established exporters as Export House, Trading House, Star Trading House and Super Star Trading House with a view to building marketing infrastructure and expertise required for export promotion. Such Houses should operate as highly professional and dynamic institutions and act as important instruments of export growth.

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CASE STUDY – 1

Questions

Q. 1. Discuss the strength and weaknesses of the Indian agro processing industry in relation to the international market for agro processed foods.

Answer:The food processing industry in India is a sunrise sector that has gained prominence in recent years. Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable push to the industry’s growth. This sector is among the few that serves as a vital link between the agriculture and

Q. 2. Describe the role played by the government in the development of agro processing industry.

Answer: The domestic industry is yet to change its preference in favor of processed foods. Consumption of value added fruits and vegetables is low compared to the primary processed foods, and fresh fruits and vegetables. The inclination towards processed foods is mostly visible in urban centers. 

CASE STUDY - 2

Questions

Q. 1. In the light of the case compare the change in the destinations of India’s exports from and imports to India in the last decade with the period before liberalization?

Answer: The importance of Foreign Trade for India can be gauged from an analysis of certain macroeconomic indicators relating to foreign trade and the growth of the economy.

A publication on India's trade and investment by Exam bank highlights the trend in exports moving towards southern countries,

Q. 2. Discuss the reasons for rapid growth of exports from India in 2010-11.

Answer: City Investment Research and Analysis estimates that in a decade India will be the third-largest economy. Between 2000–01 and 2007–08, India’s real GDP growth averaged 7.3 per cent per annum. Growth rates have recently been around 9 per cent and sometimes in excess of 9 per cent, except

Q. 3. Identify some goods and services from your viewpoint that have export opportunities for major markets. What steps can be taken to promote their exports?

Answer: The most common methods of exporting are indirect selling and direct selling. In indirect selling, an export intermediary such as an export management company (EMC) or an export trading company (ETC) normally assumes responsibility for finding overseas buyers, shipping products, and getting paid. In

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