PRESENTED BY:-AMAY MANDLOI

HARDIKA KISHOREABHISHEK KUMAR

FO R E I G NT R A ED

CONTENT

FOREIGN TRADE

BOT

BOP

IMPORTANT TRADE INSTITUTION

FOREIGN CONTRACTS

METHODS OF FOREIGN TRADE

BANKING FACILITIES

ROLE OF EXIM BANK

FREE PORT AND FREE TRADE ZONE

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Foreign trade is nothing but trade between the different countries of the world. It is also called as International trade, External trade or Inter-Regional trade. It consists of imports, exports and entrepot

Types of Foreign Trade:-

• Import Trade:- Import trade refers to purchase of goods by one country from another country or inflow of goods and services from foreign country to home country.

• Export Trade:- Export trade refers to the sale of goods by one country to another country or outflow of goods from home country to foreign country.

• Entrepot Trade:- : Entrepot trade is also known as Re-export. It refers to purchase of goods from one country and then selling them to another country after some processing operations

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Need and Importance of Foreign Trade :-

• Division of labour and specialization• Optimum allocation and utilisation of resources• Equality of prices• Ensures quality and standard goods• Assistance during natural calamities

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Dumping:-Dumping, in international trade, is the export by a country or company of a product at a price that is lower in the foreign market than the price charged in the domestic market.

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

'Balance Of Trade - BOT‘:-

• Balance of trade (BOT) is the difference between a country's imports and its exports.

• Balance of trade is the largest component of a country's balance of payments.

• A country has a trade deficit if it imports more than it exports; the opposite scenario is a trade surplus.

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

'Balance Of Payments (BOP)‘:-

• A statement that summarizes an economy’s transactions with the rest of the world for a specified time period.

• The BOT, also known as balance of international payments, encompasses all transactions between a country’s residents and its nonresidents involving goods, services.

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Foreign Contracts:-• Goods are traded between

two countries under contracts of sale/purchase which contains price, mode of delivery e.t.c.It includes:-

1. Mode of Delivery2. Mode of Payment

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Freight and Insurance:• In Foreign trade in case of

Freight and insurance certain abbreviation are used as:

- c.i.f- c.& f.- f.o.b- F.a.s

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Important trade Institution:-

• WTO• IMF• OECD

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

METHODS OF FOREIGN TRADE:-

• Cash-in-Advance• Letters of Credit• Open Account• Consignment

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Banking Facilities:-Bank can render assistance to Indian merchant and manufacturers already engaged in or intending to enter in foreign markets in following ways:-

• Credit Worthiness• Export Promotions• Collecting Import Bills

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

EXIM bank:-• It is short of Export Import bank of india. It is a

Public sector bank established on January 1st 1982 with authorized capital of 200 cr.

• Objectives:-• Provide Financial assistance to exporters.• Promoting Foreign Trade in India• Assist Indian joint ventures in third world• Concentrate on medium and long term finance.

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

Free Port/ Free Trade Zone:-• A free port is a port declared as such by the

government of the country where no quantitative restrictions on imports into or exports

• In India the idea establishing free ports was first mooted in 1957 by the Export promotion Committee

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

• Kandla Trade Free Zone, India• Jafza Chennai Buisness parks, Gujarat• Shipco Infrastructure, Karnatka

FOREIGN TRADE

BOT BOP FOREIGN CONTRACTS

TRADE INSTITUTION

FOREIGN TRADE

METHODSBANKING FACILITIES

EXIM BANK

FREE PORT AND FREE

TRADE ZONE

BIBLIOGRAPHY

• WWW.YOURARTICLELIBRARY.COM• WWW.ECONOMICSTIMES.INDIATIMES.COM• WWW.FORIEGN_TRADE.COM

THANKYOU