2:q: SCOPE OF INTERNATIONAL MARKETING ANS: The scope of international marketing is very wide.

International Marketing constitutes the following areas of business:-

1.Exporting and importing: Company can exporting their product through two way:1.Direct ExportThe organisation produces their product in their home market and then sells them to customers overseas. 2. Indirect ExportThe organisations sells their product to a third party who then sells it on within the foreign market. Companies carried out business activities across the boundary of the nations. Companies can find out a market. It helps the companies to create better demand of its product. Companies can beat the competition properly. Countries can earn foreign revenue. Managers can learn how to handle overseas market.

2.Licensing Another less risky market entry method is licensing. Here the Licensor will (give a facility)grant an organisation in the foreign market a license to produce the product, use the brand name etc in return that they will receive a royalty payment. 3.Franchising(turnkey project) Franchising is another form of licensing. Here the organisation puts a package of the successful ingredients which made them a success in their home market and then franchise this package to oversea investors. The Franchise holder may help out by providing training and marketing the services or product. McDonalds is a popular example of a Franchising option for expanding in international markets.

4.Contracting Another of form on market entry in an overseas market which involves the exchange of ideas is contracting. The manufacturer of the product will contract with another manufacturer to prduce a product on the behalf of them.

5.Manufacturing Abroad The ultimate decision to sell abroad is the decision to establish a manufacturing plant in aforeign/host country . government of that country may give the organisation some form of tax advantage because they wish help create employment for their economy.

6.Joint Venture To share the risk of market entry into a foreign market, two organisations may come together to form a company to operate in the host/foreign country. The two companies may share knowledge and expertise to assist them in the development of company, the profits will have to be shared between the two firms according to their agreement

7.Mergers and Acquisitions: Mergers and Acquisitions is provide markets, new technology and patent rights. It also reduces the level of competition for firms which either merge or acquires. Ex. Maruti and Suzuki

Difference between International and Domestic Marketing International Marketing 1. Meaning Domestic Marketing

It refers to those activities which results It refers to those activities which into transfers of goods and services from results into transfers of goods and one country to another. services inside the country itself. International trade is characteristics by tariff and non tariff barriers. It involves exchange on the basis of different currencies. Domestic marketing has no such restrictions. It involves exchange in the basis of same currencies.

2. Barriers 3. Currencies

4.Government Interference

Exchange takes place under government Government in interference is zero or rules and regulations. There is high minimum only incase of essential degree of government interference. commodities.

5. Culture 6.Mode of Payment

Trade should be done taking diverse into consideration. Even things like colour Culture does not affect in domestic combination can be affect the trade. marketing. Letter of credit is normally as mode of payment. Cash, Cheques, DDs are the most common. Domestic Trade enjoys greater mobility in factors of production.

Factors of Production are relatively 7.Mobility of Factors immobile as compared to domestic of Production marketing. 8. Competition 9. Documentation

International Trade is subject to intense Competition is not as intense as it is competition. in international marketing. International Marketing is subject to complex documentation Domestic trade does not involve much of documentation.

10. Risk

International Marketing is subject to high Domestic Marketing is also subject to risk. Political, foreign exchange risk, bad risk but not as high as international debt risk are few of them. marketing.

3:What are Export Promotion Councils. Discuss their role?

Ans:BOOK 31

The basic objective of Export Promotion Councils is to promote and develop the exports of the country. Each Council is responsible for the promotion of a particular group of products, projects and services.

Role The main role of the EPCs is to project India's image abroad as a reliable supplier of high quality goods and services.

Functions The major functions of the EPCs are as follows: 1. To provide commercially useful information and assistance to their members in developing and increasing their exports 2. To offer professional advice to their members in areas such as technology upgradation, quality and design improvement, standards and specifications, product development and innovation etc. 3. To provide market research to identify /explore overseas market opportunities. 4. To systematic/organized participation in trade fairs, exhibitions and buyer-seller meets in India and abroad. 5. To promote interaction between the exporting Government both at the Central and State levels community and the

4: Explain exporter?

the

procedure

for

registration

as

an

Ans: EXPORT PROCEDURE

Export Procedure Registration Stage. Shipment Stage. Pre-shipment Stage Post-shipment Stage.

Registration Stages The exporter is required -to register his organisation with a number of institutions and authorities, which directly or indirectly help him in the smooth conduct of export, trade. The registration stage includes: a. Registration of the Organisation: The form of organisation selected by the exporter must Be registered under the appropriate Act of the country. A joint stock company under the Companies Act, 1956.; A partnership firm under the Indian Partnership Act, 1932.; A sale trader should seek permission from the local authorities, as required. b. Opening-Bank Account: The exporter should open a current account in the name of the firm or company with a commercial bank which is authorised by the Reserve Bank of India (RBI) to deal in foreign exchange. Such bank also serves as a source of pre-shipment and post-shipment finance for the exporter. c. Obtaining Importer-Exporter Code Number (lEC No.): after above two stage it is mandatory to get aor obtain a IEC No . iec no is issued by director general foreign trade(DGFT).which is replace the CNX number. Application form for get / obtaining IEC number should be accompanied by fee of Rs. 1000. d. Obtaining Permanent Account Number- (PAN): For claiming export income exemptions and deductions, the exporter should register his organisation with the Income Tax Authorities and obtain the Permanent Account Number (PAN). e. Obtaining Sales Tax Number: Exportable goods are exempted from sales tax, provided, the exporter or his firm is registered with the Sales Tax Authorities. , For this purpose, the exporter is required to give/make an application in the prescribed form to the Sales Tax Office (STO) . f. Registration with, Export Promotion Council (EPC) ::

It is mandatory for every exporter to ,register with the appropriate Export Promotion Council (EPC) and obtain the Registrationcum-Membership Certificate (RCMC). The benefits provided in the current EXIM Policy are get/grabe only to the registered exporters having valid RCMC. g. Registration with ECGC: The exporter should also register with the Export Credit and Guarantee Corporation of India (ECGC) in order to secure overseas payments against political and commercial risks. It also helps the exporters in obtaining/get the financial assistance from commercial banks and other financial institutions. h. Registration with other Authorities: The exporter should also register with various other authorities, such as: Federation of Indian Export Organisation (FIEO), Indian Trade Promotion Organisation (ITPO), Chambers of Commerce (COC), Productivity Councils, etc.

. Export Incentives

Export Incentives:
Monetary, tax or legal incentives designed by the government of india to encourage businesses to export certain types of goods or services. A government providing export incentives so in order to keep domestic products competitive in the global market. Types of export incentives include tax exemption on profits made from exports.
Some schemes grants incentive and other benefits. The few important export incentives, from the point of view of indirect taxes are briefed below:-

1.Free Trade Zones (FTZ)

-Several FTZs have been established at various places in India like Kandla, Noida, Cochin, etc. No excise duties are payable on goods manufactured in these zones provided they are made for export purpose. -Goods being brought in these zones from different parts of the country are brought without the payment of any excise duty.

-Moreover, no customs duties are payable on imported raw material and components used in the manufacture of such goods being exported. -If entire production is not sold outside the country, the unit has the provision of selling 25% of their production in India.

2.Electronic Hardware Technology Park / Software Technology Parks

-This scheme is just like FTZ scheme, -but it is restricted to units in the electronics and computer hardware and software sector.

3.Advance Licence / Duty Exemption Entitlement Scheme (DEEC)

-In this scheme advance licence, is given to an exporter against to imported raw metarials and other components without paying customs duty in term of the manufactured goods are exported. -These licences are transferable in the open market at a price.

4.Export Promotion Capital Goods Scheme (EPCG)--According to this scheme, a domestic manufacturer can import machinery and plant without paying customs duty -or settling at a concessional rate of customs duty.

5.Deemed Exports
The Indian suppliers get some benefits in respect of deemed exports:

Refund of excise duty paid on final products Duty drawback Imports under DEEC scheme Advance Licence

6.Manufacture Under Bond

-Under this bond this the manufacturer is allowed to import goods without paying any customs duty, -even if he obtain it from the domestic market without excise duty. -The production is made under the supervision of customs or excise authority.

7.Duty Drawback
It means the rebate of duty chargeable on imported material or excisable material used in the manufacturing of goods in and is exported. The exporter may claim drawback or refund of excise and customs duties being paid by his suppliers. The final exporter can claim the drawback on material used for the manufacture of export products. In case of re-import of goods the drawback can be claimed. The following are Drawbacks:

Customs paid on imported inputs plus excise duty paid on indigenous imports. Duty paid on packing material.

Drawback is not allowed on inputs obtained without payment of customs or excise duty. In part payment of customs and excise duty, rebate or refund can be claimed only on the paid part. In case of re-export of goods, it should be done within 2 years from the date of payment of duty when they were imported. 98% of the duty is allowable as drawback, only after inspection. If the goods imported are used before its re-export, the drawback will be allowed as at reduced percent.

11. **Explain brifly about export finance? Ans: Export finance in india is available in two categories- 1.preshipment finance and 2.post-shipment finance. 1.Pre-shipment finance: Pre Shipment Finance is issued by a financial institution when the seller want the payment of the goods before shipment. The main objectives behind preshipment finance or pre export finance is to:

To purchasingraw materials. To Carry out manufacturing process. To Process and pack the goods. To Ship the goods to the buyers. Etc. Types of Pre Shipment Finance

1.Packing Credit 2.Advance against Cheques/Draft etc. representing Advance Payments. 1.Packing Credit -A borrowing facility provided by a financial institution to help an exporter, to finance for purchasing raw materials to making a set of products, and for the process of packing and transporting them before shipment occurs. -A packing credit loan will be given to a exporter when the letter of credit has been issued by a purchaser of the products that is based in another country Packing Credit is extended in the following forms:

Packing Credit in Indian Rupee Packing Credit in Foreign Currency (PCFC)

2.Advance against Cheque/Drafts received as advance payment -Where exporters receive direct payments from abroad by term of cheques/drafts etc. - the bank may grant export credit at concessional rate to the exporters on behalf of goods track record, till the time of the cheques or draft is mature etc. -The Banks must satisfy themselves before giving the export credit 2.Post shipment finance Post Shipment Finance is a kind of loan or finance facility provided by a financial institution to an exporter or seller against a shipment that has already been made.once the exporter has shipped the goods There will always be a time gap between the date of shipment and date of receipt of payment. Exporters can obtain funds for the shipment from the bank without waiting for to deposit the funds or make the payment by the buyer. Types of Post Shipment Finance :The post shipment finance/credit can be classified as :

Export Bills purchased/discounted. Export Bills negotiated Advance against export bills sent on collection basis. Advance against export on consignment basis Advance against undrawn balance on exports Advance against claims of Duty Drawback.

 ..

it has three stages New Product (developed 1st, export) it is a first home country, where the product is developed or introduce and satisfy consumer need and wants and later on its export to others from home country Maturity (shifting,eco. Reson) Shifting production bases outside due to economical reasons( to reduce the cost and increase the demand outside) Standardization (import,switches to compete cost) Product standardized and mostly imported into home country . When the demand stops it switches to a standard product to compete the cost.

Example computers,

computer Initially produced in the USA Then exported from the USA Production bases shifted outside, Taiwan, Singapore (and now China) USA today importing Computers from outside even that is costly. ................................................................................................................................................................ ................................................................................................................................................................