Transfer pricing

Transfer pricing is arbitrary pricing of exports and imports that may be greater than or less than
the arms-length prices. It is basically the pricing of intra-corporate transactions. Different units
of an MNC operate in different countries on the basis of vertical and horizontal linkages.

The objectives of transfer pricing are as follows:

1) Maximizing overall after-tax profits.
2) Reducing incident of customs duty payments
3) Circumventing the quota restrictions (in value terms) on imports.
4) Reducing exchange exposure, circumventing exchange controls and restricting profit
repatriation so that transfer firms affiliates to the parent can be maximized.
5) Transferring of funds in locations so as to suit corporate working capital policies.
6) Window dressing operations to improve the apparent (i.e., reported) financial position of an
affiliate so as to enhance its credit ratings.

Corporate networking

India trade promotion organization

Indian Trade Promotion Organization The ITPO was bought into being in
1992 by merging together the erstwhile Trade Fair Authority Of India (TFAI)
and the erstwhile Trade Development Authority of India (TDA).
The functions of the ITPO are to

Develop and promote exports, imports and upgrade technology

through fair in India and abroad

2. Compile and disseminate trade related information

3. Undertake publicity through the print and electronic media

Functions of exim bank

The main functions of the EXIM Bank are as follows:
(i) Financing of exports and imports of goods and services, not only of India but
also of the third world countries;
(ii) Financing of exports and imports of machinery and equipment on lease basis;
(iii) Financing of joint ventures in foreign countries;
(iv) Providing loans to Indian parties to enable them to contribute to the share
capital of joint ventures in foreign countries;

(v) to undertake limited merchant banking functions such as underwriting of

stocks, shares, bonds or debentures of Indian companies engaged in export or
import; and
(vi) To provide technical, administrative and financial assistance to parties in
connection with export and import.

Standardized advertising

Importance of international marketing

A)Importance from the consumer's point of view:

Consumption of unpronounced goods

Consumption of goods at a low price

Enjoying benefits of competition

Consumption of new products

Increase in consumption

B)Importance from the producer's point of view:

Export of surplus production

Expansion of market in foreign countries

Production of goods at a low cost

Increase in production

More profitable

Reduce business risk

Reduce cost

C)Importance from economic point of view:

Increases total production

Increases export earnings

Challenging natural calamities

knowledge and cultural progress

Increases international peace and assistantship

Extension of industry

Export of unusual goods

Optimum utilization of natural resources

Progress in technological knowledge

Image development.

Role of commodity boards

To take up various problems, points, suggestions to the States / Central Government and
semi-Government Bodies.

To take up issues with the Export Promotion Organization - EPCs, Commodity Board,
FIEO, ITPO, Various Government Ministries and Departments for making easy
participation in the Fairs and Exhibitions organized in India and Overseas.

To make efforts for creation of transparency in the function of the EP Organization-EPCs,

Commodity Board, FIEO etc.

To organize Seminars and Meetings at various places to discuss ways and means to
overcome problems and difficulties of the member-exporters / exporting community.

To invite Government officials , officials of EP Organizations and Dignitaries at the

meetings / Seminars for facilitation and resolving problems relating to exports of the
member exporters / exporting community.

To publish brochures, booklets containing useful information for member exporters,

foreign buyers/buying agents etc.

To distribute the brochures, booklets, directories etc. at the time of fair and other
occasions for the benefits of member exporters.

To set up International Trade Centers and Flatted Factory Complex (Industrial Parks).

To unite exporters to take common cause / issues with the concerned Organization ,Foreign
Embassies and Foreign Mission in India and Foreign Trade Offices in India and Indian embassies
/ High Commissions overseas etc