Trade and Commerce

INTRODUCTION

Among several features of Globalization/”>Globalization-3/”>Globalization, one relates to increasing interactions among nations and removal of barriers to facilitate movement of goods, capital, labour and technology. It is a process that renders various activities and aspiration worldwide in scope or application. As a part of this process of increasing integration of the world, many countries have adopted Economic Reforms and Liberalization-2/”>Liberalization in their own ways.

The rapid integration of Brazil, Russia, India, China and South Africa into the world market was an important element of globalization. Trade is the primary manifestation of this increasing integration and changing organizational structure of the global economy which has been much more extensive than in the past involving more countries & regions. In the similar way, it is also much more intensive as Foreign Trade became a key component of most countries economic activities. Over the years emerging economies like China, India, Brazil, Mexico, Russia and South Africa have made their presence felt in the global market and have come forth as new key drivers of global Growth.

Among other emerging countries, China and India are the fastest growing economies. India with its distinct development strategy has the potential to influence economic activities of the global economy in the years to come. With this background, this study is an exploratory attempt to measure the quantum leap in export and import to India, and to identify changes in commodity composition and regional patterns of inflows and outflows of merchandise trade. The analysis pertains to four points of time 1990, 1995, 2000 and 2005. Some of the major findings of the study are as follows: (i) Manufacturing sector has increased its share vis-̂-vis other tradable sectors; (ii) Specialization of production and diversification of consumption; (iii) Indian trade is gradually moving away from low value-added product

TRADE Infrastructure-2/”>INFRASTRUCTURE FOR EXPORT SCHEME (TIES)

Objectives

To enhance export competitiveness by bridging gaps in export infrastructure, creating focused export infrastructure, first mile and last mile connectivity for export-oriented projects and addressing quality and certification measures.

Salient features

It would provide financial assistance for setting up and upgradation of existing infrastructure with export linkages like border haats, cold chains, dry Ports etc.
The Central and State Agencies, including Export Promotion Councils, Commodities Boards, SEZ Authorities and Apex Trade Bodies recognised under the EXIM policy of Government of India; are eligible for financial support under this scheme.
The Central Government funding will be in the form of grant-in-aid, normally not more than the Equity being put in by the implementing agency or 50% of the total equity in the project. (In case of projects located in North Eastern States and Himalayan States including J&K, this grant can be upto 80% of the total equity).

MERCHANDISE EXPORTS FROM INDIA SCHEME

It is an export promotion scheme launched under the Foreign Trade Policy (FTP) 2015-20.
It has replaced 5 different schemes of earlier FTP (Focus Product Scheme, Market Linked Focus Product Scheme, Focus Market Scheme, Agri. Infrastructure Incentive Scrip, Vishesh Krishi and Gram Udyog Yojana) for rewarding merchandise exports which had varying conditions (sector specific or actual user only) attached to their use.
Now there would be no conditionality attached to the scrips issued under the scheme.

Service Exports from India Scheme (SEIS)

It was launched under the Foreign Trade Policy (FTP), 2015-20 replacing the earlier scheme ‘Served from India Scheme’.
SEIS shall apply to `Service Providers’ located in India’ instead of `Indian Service Providers’. Thus, SEIS provides for rewards to all Service providers of notified Services, who are providing services from India, regardless of the constitution or profile of the service provider.

TRENDS

In the age of globalisation, India is new entrant to expand international trend. In 1991, the government initiated some changes in its strategy on trade, foreign Investment, Tariffs and Taxes under the name of “New Economic Reforms”. Indian government mainly concentrated on reforms on Liberalization, openness and export sponsorship activity. It is witnessed that foreign Trade of India has considerably revolutionized export in the Post reforms period. Trade Volume increased and the composition of exports has undergone several noteworthy changes. In Post – reform Period, the major provider to export’s growth has been the manufacturing sector.
Though India has steadily opened up its wealth, its tariffs are high as compared with other countries, and its conjecture norms are still restricted. Foreign trade in India in legal term is the Foreign Trade (Development and Regulation) Act, 1992. The Act provide with the development and regulation of foreign trade by assisting imports into, and supplementing exports from India.
To fulfil the requirements of the Act, the government may make necessities for assisting and controlling foreign trade, may forbid, confine and regulate exports and imports, in all or particular cases as well as subject them to exclusion. Government is endorsed to devise and declare an export and import policy and also amend the same from time to time, by notification in the Official Gazette, and is also authoritative to appoint a ‘Director General of Foreign Trade’ for the purpose of the Act, including formulation and accomplishment of the export-import policy.
The 15X15 MatrixStrategies was introduced in 1995 and major aim of this policy was to recognize market diversification and commodity diversification. When reviewed the success of this, it represented that the share of the total top 15 product groups exported to the top 15 market destinations declined from 71% in 1996-97 to 66% in 2000-01 in respect of the total export of these 15 product groups for all destinations taken together. It clearly showed the market diversification for these product groups.
The major items of India’s exports controlled in the Matrix continue to remain the same during 2000 – 01 such as Gems and Jewellery, RMG Cotton including accessories and Cotton Yarn, Fabrics and Made Ups. The top three destinations changed from US, UK and Japan to US, Hong Kong and UAE. Another strategy was Focus LAC which was introduced in 1997 in order to enhance exports of chosen products such as Textiles including RMG, Engineering goods and Chemical products to Latin American Region. The highest growth rate of exports to this region was accomplished during period of 2000-01 when the value of exports was high of US$ 982 million.
Though the current trade between LAC and India is still low, there is possibility to increase two-way trade between India and the LAC region. It is observed from the export strategies of previous time is that the composition, competitiveness and complexion of world products trade are changing rapidly and there is a need to review the market constantly for any medium term export strategy to achieve a higher share of global exports on a sustainable basis. The main concentration of previous foreign trade strategies was on the existing export products of India.
Nonetheless, presently, the government has made policy on trade and investment policy that has established an obvious change from protecting ‘producers’ to benefiting ‘consumers’. It is reflected in its foreign trade strategy of India for 2004/09 which indicated that “for India to become a major player in world trade we have also to make possible those imports which are required to stimulate our economy”. With numerous economic alterations, globalisation of the Indian economy has been the foremost factor to formulate the trade policies.
The announcement of a new Foreign Trade Policy of India for a five year period of 2004-09, substituting until now taxonomy of EXIM Policy by Foreign Trade Policy is major step in the development of foreign trade policy. This policy made the overall development of India’s foreign trade and offers guidelines for the development of this sector. Main purpose of the Exim Policy is to hasten the economy from low level of economic activities to high level of economic activities by making it a globally oriented energetic economy and to derive maximum benefits from expanding global market opportunities, to encourage continued economic growth by providing access to essential raw materials, intermediates, components, consumables and Capital Goods required for augmenting production, to boost the techno local strength and efficiency of Indian agriculture, Industry and services, thereby, improving their competitiveness, to generate new EMPLOYMENT and opportunities and encourage the attainment of internationally accepted standards of quality.
Finally, this policy provides quality consumer products at reasonable prices. A vibrant export-led growth strategy of doubling India’s share in global commodities trade with an attention on the sectors having prospects for export development and potential for employment generation, represent the main factor of the policy. These activities augment India’s international competitiveness and assist in increasing the suitability of Indian exports. The trade policy recognizes major strategies, outlines export incentives, and also focus on issues relating to institutional support including SIMPLIFICATION of procedures relating to export activities.
India is now violently pushing for a more moderate global trade management, especially in services. It has understood a Leadership role among developing nations in global trade debates, and played a decisive part in the Doha negotiations. With economic reforms, globalisation of the Indian economy has been the major factor in devising the foreign trade policy of India.

Challenges

The objective of the Foreign Trade Policy is to twofold India Percentage share of global merchandise trade and to act as an effectual instrument of economic growth by giving a thrust to employment generation, especially in semi-urban and rural areas. The growth performance of exports has been a result of watchful effort of the Government to lessen transaction costs and assist trade. The guidelines of the Foreign Trade Policy (2004-09) for a five year period clearly articulate objectives, strategies and policy initiatives that has been involved in putting exports on a higher growth line.
There are numerous challenges and issues in foreign trade. These include burden of export promotion schemes, danger of circular trading, and risk of importing outdated machinery. Sometimes policy fails to take a holistic view of trade issues. Other issue is relative importance of the home market, the nature or the degree of State intervention and recessionary conditions in the global market. India’s exports have suffered due to structural constraints operating both on the demand and supply side.
On the demand side exports have continued to undergone the problems of adverse world trading Environment, protectionist sentiments in the developed countries in the guise of technical standards, environmental and social concerns and tariff differentials in imports by the developed countries. At the supply end, the factors that have constrained exports from India include infrastructure constraints, high transaction costs, inflexibilities in labour laws, quality problems, constraints in attracting FDI in the export sector, etc

Conclusion

It is summarized that foreign trade has significant function in the fiscal development of any nation. India has made strong foreign trade policies and reformed these from time to time with the process of globalisation and liberalization. Since 1991, India’s foreign trade considerably transformed. India’s major exports include manufacturing and engineering goods. India has good trading relations with all developed countries in the world. More than fifty percent of India’s total export trade is with Asia and ASEAN region and about sixty percent of India’s total imports is with the same countries. India’s wealth previously was agricultural economy.

India’s major requirement use to be food grains and other goods in import with fast industrialization, the composition of India’s imports goods changed and needed chemicals, Fertilizers and machinery which were required to meet the developmental requirements of country. In the composition of export; country sells agricultural products such as tea, spices, and other raw materials. However, with the industrialization of the financial system, compositions of exports changed. Currently, India exports products such as machinery chemicals and marine products. This may enhance the fiscal condition of India.

Trade and commerce are essential to the functioning of any economy. They allow for the exchange of goods and services between individuals and businesses, and they help to promote economic growth.

There are many different aspects to trade and commerce, each with its own set of challenges and opportunities. Accounting, for example, is essential for tracking financial transactions and ensuring that businesses are operating within the law. Advertising is used to promote products and services to potential customers. Arbitration is a process for resolving disputes between businesses. Banking provides financial services to businesses and individuals. Business law deals with the legal issues that arise in the course of business transactions. Business ethics is concerned with the moral principles that should guide business decisions. Business planning is the process of developing a strategy for a business. Business statistics is the use of statistical methods to analyze data from business transactions. Commerce is the exchange of goods and services between individuals and businesses. Consumer protection is the regulation of businesses to ensure that they treat consumers fairly. Corporate finance is the management of a company’s financial Resources. Corporate Governance is the system of rules and procedures that govern the way a company is run. Cost accounting is the process of tracking the costs of goods and services produced by a company. Economics is the study of how resources are allocated in an economy. E-Commerce is the buying and selling of goods and services over the Internet. Entrepreneurship is the process of starting and running a business. Financial management is the process of planning and controlling a company’s finances. Franchising is a business model in which a company grants another company the right to use its name, trademarks, and business model in exchange for a fee. Human resources management is the process of recruiting, hiring, and managing employees. International business is the conduct of business between two or more countries. International trade is the exchange of goods and services between countries. Investing is the purchase of assets with the expectation of generating a return. Marketing is the process of promoting products and services to potential customers. Mergers and acquisitions are the combination of two or more companies. Negotiation is the process of reaching an agreement between two or more parties. Operations management is the process of planning, organizing, and controlling the resources used to produce goods and services. Organizational behavior is the study of the behavior of individuals and groups in organizations. Patent law is the body of law that protects inventions. Procurement is the process of acquiring goods and services from suppliers. Product development is the process of creating new products or improving existing products. Public relations is the process of managing the Communication between an organization and its publics. Real estate is the ownership and sale of land and buildings. Sales is the process of selling goods and services to customers. Supply Chain Management is the process of planning, organizing, and controlling the flow of goods and services from suppliers to customers. Taxation is the imposition of a financial charge on individuals or businesses by a government. Trade policy is the set of rules and regulations that govern international trade. Trade regulation is the body of law that governs the conduct of trade between countries. Venture Capital is the investment of Money in new or growing businesses.

These are just some of the many aspects of trade and commerce. The field is constantly evolving, as new technologies and business models emerge. Those who work in trade and commerce must be able to adapt to change and be prepared to take risks. However, the rewards can be great. Trade and commerce can be a very rewarding career, and it offers the opportunity to make a real difference in the world.

Sure, here are some frequently asked questions and short answers about various topics:

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What is the purpose of Education?
The purpose of education can vary depending on the individual and the Society in which they live. Some possible purposes of education include: to prepare people for the workforce, to help people develop their minds and talents, and to promote social and Economic Development.
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I hope this helps!

Sure, here are some MCQs without mentioning the topic Trade and Commerce:

Which of the following is not a factor of production?
(A) Land
(B) Labor
(C) Capital
(D) Entrepreneurship
Which of the following is a characteristic of a monopoly?
(A) There is only one seller in the market.
(B) The seller has a lot of market power.
(C) The seller can charge a high price.
(D) All of the above.
Which of the following is a characteristic of a perfectly competitive market?
(A) There are many sellers in the market.
(B) The sellers have a small amount of market power.
(C) The sellers can only charge a low price.
(D) All of the above.
Which of the following is a characteristic of a monopolistically competitive market?
(A) There are many sellers in the market.
(B) The sellers have a small amount of market power.
(C) The sellers can charge a high price.
(D) The sellers can differentiate their products.
Which of the following is a characteristic of an oligopolistic market?
(A) There are few sellers in the market.
(B) The sellers have a lot of market power.
(C) The sellers can collude to fix prices.
(D) All of the above.
Which of the following is a characteristic of a free market economy?
(A) The prices of goods and services are determined by supply and demand.
(B) The government does not interfere in the economy.
(C) The economy is based on private ownership of property.
(D) All of the above.
Which of the following is a characteristic of a command economy?
(A) The prices of goods and services are determined by the government.
(B) The government owns and controls all of the means of production.
(C) The economy is based on central planning.
(D) All of the above.
Which of the following is a characteristic of a Mixed Economy?
(A) The prices of goods and services are determined by supply and demand.
(B) The government owns and controls some of the means of production.
(C) The economy is based on both private ownership and government ownership.
(D) All of the above.
Which of the following is a characteristic of a developed country?
(A) It has a high standard of living.
(B) It has a high level of industrialization.
(C) It has a high level of education.
(D) All of the above.
Which of the following is a characteristic of a developing country?
(A) It has a low standard of living.
(B) It has a low level of industrialization.
(C) It has a low level of education.
(D) All of the above.

I hope these MCQs are helpful!