Page 70 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 3: EXIM Strategies

13. The overall attractiveness of a country as a potential market and/or investment site for an Notes
international business depends on balancing the benefits, .........................associated with
doing business in that country.
14. ..................risks can be defined as the likelihood that economic mismanagement will cause
drastic changes in a country’s business environment that adversely affect the profit.

15. A ......................strategy is appropriate for industries where multi-country competition
dominates and local responsiveness is essential.

3.6 Summary

Exim Bank plays four-pronged role with regard to India’s foreign trade: those of a
coordintator, a source of finance, consultant and promoter.
Exim Bank is the Coordinator of the Working Group Mechanism for clearance of Project
and Services Exports and Deferred Payment Exports (for amounts above a certain value
currently US$ 100 million).
The Working Group comprises Exim Bank, Government of India representatives (Ministries
of Finance, Commerce, External Affairs), Reserve Bank of India, Export Credit Guarantee
Corporation of India Ltd. and commercial banks who are authorised foreign exchange
dealers.

Globalisation renders the business environment increasingly global even for domestic
firms. The major competition which many Indian firms encounter in the home market
now, for instance, is from goods produced in India by MNCs and imports.
International marketing is an important aspect of international business.
International marketing is not the same thing as international trade. Only a part of the
international trade flows represents international marketing.

International can be defined as “finding out what customers want around the world and
then satisfying these wants better than other competitors, both domestic and international”.
It will be observed that international marketing has dual aspects, viz. foreign marketing
(marketing in foreign countries) and global marketing (coordinating marketing in multiple
markets, in the face of global competition).

3.7 Keywords

Export-Import Bank of India is to provide financial assistance to importers and exporters and
function as the top financial institution.
International marketing: International marketing is an important aspect of international
business. International marketing is not the same thing as international trade. Only a part of the
international trade flows represents international marketing.
Non-tariff barriers: Non-tariff barriers are restrictions arising from measures such as licensing,
product testing, certifications, procedural hurdles, etc.
Quota restrictions: Quota restrictions mean explicit limit (usually measured by volume or
sometime by value) on the amount of a particular product that can be imported or exported
during a specified time period.
Tariff barriers: Tariffs were originally intended to raise revenues for the government. However,
they are now commonly used as a form of protectionism to restrict imports to protect domestic
industry or to restrict exports to preserve national endowments.

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