IB0015- Foreign Trade of India

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ASSIGNMENT

DRIVE WINETR	FALL  2014
PROGRAM	MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDIB (SEM 2)
SUBJECT CODE & NAME	IB0015- Foreign Trade of India
SEMESTER	4
BK ID	B1908
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

1 Explain Ricardo’s Theory of Comparative Advantage and compare it with Adam Smith’s Absolute Advantage theory.

Answer : Theory of Comparative Advantage of International Trade: by David Ricardo!

The classical theory of international trade is popularly known as the Theory of Comparative Costs or Advantage. It was formulated by David Ricardo in 1815.

The classical approach, in terms of comparative cost advantage, as presented by Ricardo, basically seeks to explain how and why countries gain by trading.

2 Describe the composition of India’s import.

Answer : The features of Volume, Composition and Direction of India’s Foreign Trade are as follows:

1) Increasing Share of Gross National Income:

Foreign Trade

India’s foreign trade plays an important role in the Gross National Income.

In 1990-91, share of India’s foreign trade (import export) in net national income was 17 per cent which in 2006-07 rose to 25 per cent. In 2006-07 exports and imports as percentage of GDP were 14.0 per cent and 21 per cent respectively.

2) Less Percentage of World Trade:

3 Discuss the salient features of Foreign Trade Policy 2009-14.

Answer : The foreign trade policy 2009- 14 was announced by the union commerce minister on August 27, 2009.The new Foreign Trade Policy (FTP) takes an integrated view of the overall development of India’s foreign trade and goes beyond the traditional focus on pure exports.

This would be clear from the following statement in the policy document, "Trade is not an end in itself, but a means to economic growth and rational development. The primary purpose is not the mere earning of foreign exchange, but the stimulation of greater economic activity."

4 Write short notes on the sectoral performance of:

a. Gems and Jewellery

Answer : Gems and Jewellery

·         The gems and jewellery sector has been one of the fastest-growing sectors in India in the past few years. The sector has gained global popularity because of its talented craftsmen, its superior practices in cutting and polishing fine diamonds and precious stones, and its cost-efficiencies.

·         India is also one of the largest diamond processor in the world and its artisans have specialised skills in processing small diamonds (below one carat). Around 9 out of 10 diamonds in the world are cut and polished in India. The country ranks among the ‘big four’ diamond cutting centres of the world,

b. Readymade garments

Answer : 1950 was the beginning of RMG in the Western world. In order to control the level of imported RMG products from developing countries into developed countries, the Multi Fibre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. In the early 1980s Bangladesh started receiving investment in the RMG sector. Some Bangladeshis received free training from the Korean Company Daewoo. After these workers came back to Bangladesh, many of them broke ties with the factory they

5 What are Special Economic Zones? Write one sentence each on any 5 SEZs in India.

Answer : A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category 'SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export processing zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a Multi National Corporation (MNC).

India was one of the first countries in Asia to recognize

6 What is the need and role of Focus Market Scheme? Discuss in detail.

Answer : Focus Market Scheme

The objective of the Focus Market Scheme is to offset the high freight cost and other disabilities to select international markets with a view to enhance our export competitiveness to these countries.

Exports of all products to the notified countries shall be entitled for duty credit scrip equivalent to 2.5% of the FOB value of exports for each licensing year commencing from 1st April, 2006. The scrip and the items imported against it would be freely transferable.

Under the Scheme, export to all countries as specified in the Handbook of Procedures (Vol. I) shall qualify for export benefits with certain exceptions as outlined.

Dear students get fully solved  Fall 2014 assignments

Send your semester & Specialization name to our mail id :

“ help.mbaassignments@gmail.com ”

or

Call us at : 08263069601