MAJOR PROBLEMS IN INDIAN EXPORT
Master of Commerce – M.Com First Year Solved Assignments for July 2019 and January 2020 Admission Cycles
M.COM First Year Tutor Marked Solved Assignment
Course Code: IBO – 03
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
Course Title: India's Foreign Trade
Assignment Code: IBO-03/TMA/2019-20
Coverage: All Blocks
IBO – 03 India's Foreign Trade Solved Assignment for 2019-20
Q5.) Write short notes on the following :
(1.) Major problems in India's exports:
Ans: In the economic environment of today, developing countries, including India, are facing throat-cut competition in the International market. If India is to become a major player in world trade, it needs to take a comprehensive view of the overall development of its foreign trade. There have always been many problems related to India export, with it giving more importance to inbound-oriented import over the promotion of export trade. Following are the major problems faced by Indian exporter :
(a.) Language Difference: Each country has its own language. When a trader of one country deals with the trader of another country then because of different languages, it becomes difficult.
(b.) More risk: The quantum of risk is higher in foreign trade than that in internal business. In foreign trade, goods are transported from quite long distances and usually through seaways. Rock, waves, and climate in the sea can damage the goods to a great extent.
(c.) Government Control: International business is usually done under government control. For import & export of products, various licenses are taken and various information is to be submitted.
(d.) Difference in laws: The rules related to export-import are separate in each country. Due to the difference in rules in each country, there is always some doubt in the mind of traders regarding payment and other terms of business.
(e.) Difficulty in Payment: Each country has a different currency. So, businessmen face a lot of problems while paying or receiving money.
(f.) Custom Duty: To control the export-import of the country, the government uses custom duty. The objective of tax on imports is to increase the price of foreign goods so that it becomes unattractive for domestic consumers.
(g.) Lack of Information: It is difficult to find out the details of the financial position and business of any businessman sitting in distant places. Such information can be taken from banks, information agencies, chamber of commerce, etc.
(h.) Economic Dependence: If a country depends upon the country for raw materials and if due to war or some other reasons imports are stopped, the whole economic life of that country will be paralyzed. Sometimes the economic crisis of one country spread all over the world.
(i.) Dumping: According to this policy, the advanced countries export their goods at the rates even below the cost of production. Japan adopted this policy during the pre-second world war and put the Indian Textile industry under great loss.
(a.) Language Difference: Each country has its own language. When a trader of one country deals with the trader of another country then because of different languages, it becomes difficult.
(b.) More risk: The quantum of risk is higher in foreign trade than that in internal business. In foreign trade, goods are transported from quite long distances and usually through seaways. Rock, waves, and climate in the sea can damage the goods to a great extent.
(c.) Government Control: International business is usually done under government control. For import & export of products, various licenses are taken and various information is to be submitted.
(d.) Difference in laws: The rules related to export-import are separate in each country. Due to the difference in rules in each country, there is always some doubt in the mind of traders regarding payment and other terms of business.
(e.) Difficulty in Payment: Each country has a different currency. So, businessmen face a lot of problems while paying or receiving money.
(f.) Custom Duty: To control the export-import of the country, the government uses custom duty. The objective of tax on imports is to increase the price of foreign goods so that it becomes unattractive for domestic consumers.
(g.) Lack of Information: It is difficult to find out the details of the financial position and business of any businessman sitting in distant places. Such information can be taken from banks, information agencies, chamber of commerce, etc.
(h.) Economic Dependence: If a country depends upon the country for raw materials and if due to war or some other reasons imports are stopped, the whole economic life of that country will be paralyzed. Sometimes the economic crisis of one country spread all over the world.
(i.) Dumping: According to this policy, the advanced countries export their goods at the rates even below the cost of production. Japan adopted this policy during the pre-second world war and put the Indian Textile industry under great loss.
MAJOR PROBLEMS IN INDIAN EXPORT
Reviewed by Simran
on
April 16, 2020
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Reviewed by Simran
on
April 16, 2020
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