Business Studies

International Business I

Question:

Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.

Answer:

India is 10th largest economy in the world. It is the second fastest growing economy, next only to China. But India's performance in international business is not very good. India's share in world trade in 2003 was just 0.8%. In absolute terms, there has been significant increase in imports as well as exports. Total exports have increased from 606 crores in 1950-51 to Rs. 2, 93,367 crores in 2003-04 while imports have increased from 608 crores in 1950-51 to 3, 59,108 crores in 2003-04. Exports increased 480 times while imports increased 590 times indicating that there is adverse balance of trade. India's major trading partners are USA, UK, Germany, Japan, Belgium, Hong Kong, UAE, China, Switzerland, Singapore and Malaysia.
India's major items of exports include: Textiles, garments, gems and jewellery, engineering products and chemicals, agriculture and allied products.
India's major items of imports include: Crude oil and petroleum products, capital goods, electronic goods, pearls, precious and semi precious stones, gold, silver and chemicals.
Before 1991, promotion of import substitution and discouraging of exports was government strategy. Imports consisted of machinery, equipment and intermediates in production, petroleum and petroleum-products. After green revolution, imports of fertilizer too increased.
Before 1991, India's exports consisted of agricultural products like tea, raw cotton with the diversifying industrial structure, promoted by import substitution, exports of manufactures were growing. During 1986-91, external trade formed only 13.40 % of the GDP. During the 1990-2000, this share is rising continuously.
India's foreign trade has grown to exports of $250 billion and imports of $380 billion in 2010-11. The ratio of exports plus imports to GDP has grown from 13.40 % during 1985-90 to almost three times that, being 37.7 % in 2010-11. On adding services it becomes from 22.9 % in the 1990s to 49.0 % in 2010-11.
Leading role has been played by ‘invisibles' which includes both services, mainly software services, export of which has grown to $59 billion in 2010-11. It has decreased the current account deficit from $130 billion to $44. This deficit was compensated by capital account surplus of $59 billion in that year.
But it is only because of IT services and we are still lacking in manufacturing exports which can generate a large volume of employment. We have not done as well as China and Malaysia have done.

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International Business I

Q 1.

What is the share of India's exports in world exports?

Q 2.

Which mode of international business should be chosen by a small business man and why?

Q 3.

Explain different forms of Joint Ventures.

Q 4.

Reebok orders for footballs to local manufacturers of Ludhiana and then sells it all over the world. It is an example of what?

Q 5.

What are the major items that are exported from India?

Q 6.

Discuss as to why nations trade.

Q 7.

Discuss the scope of international business.

Q 8.

What are the benefits of international trade to firms?

Q 9.

State the important changes being observed in composition of India's external trade since 2007-08.

Q 10.

India is_largest economy in the world.

Q 11.

Discuss the merits and demerits of entering into joint ventures.

Q 12.

List the major countries with whom India trades.

Q 13.

Discuss meaning, merits and demerits of contract manufacturing.

Q 14.

Discuss any three advantages of international business.

Q 15.

When a middleman is involved in handling export procedure, then it is called by what name?

Q 16.

Licensee or franchisee pays a fee to licensor or franchisor. What is it called?

Q 17.

"International trade benefits both the parties involve."Do you agree? Justify your answer:

Q 18.

Which service has got dominating share in foreign trade in services?

Q 19.

What is the basic reason behind international trade?

Q 20.

Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.

Q 21.

List major items of India's import.

Q 22.

Name the country whose share is largest in India's exports and imports.

Q 23.

Write a short note on India's foreign investments.

Q 24.

"Foreign trade is not free from difficulties."Comment.

Q 25.

Give one point of difference between licensing and franchising.

Q 26.

How is home trade different from external trade?

Q 27.

What is the major reason under lying trade between nations?

Q 28.

Why is it said that licensing is an easier way to expand globally?

Q 29.

Out of international trade and international business which one is wider in scope?

Q 30.

Discuss meaning, merits and demerits of contract manufacturing.

Q 31.

India embarks on the path of globalisation. Comment

Q 32.

Enumerate limitations of contract manufacturing.

Q 33.

Discuss the benefits of international business.

Q 34.

What benefits do firms derive by entering into international business?

Q 35.

"International business is more than international trade". Comment.

Q 36.

In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad.

Q 37.

"Wholly owned subsidiary is a more investing, more risky and less return giving venture."Do you agree? Substantiate your answer.

Q 38.

Discuss briefly the factors that govern the choice of mode of entry into international business.

Q 39.

Explain different forms of contract manufacturing.

Q 40.

Define international business.

Q 41.

Differentiate between international trade and international business.

Q 42.

What is invisible trade? Discuss salient aspects of India's trade in services.

Q 43.

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

Q 44.

Distinguish between licensing and franchising.

Q 45.

What is international business? How is it different from domestic business?

Q 46.

Licensing and franchising are suitable in different situations. Explain how?