International business raj

April 12, 2023 VSIM KHED 1

54321sTART

INTRNATIONAL TRADE

POLICIES AND RELATIONS

April 12, 2023 2VSIM KHED

PresentedBy:- Mr. Muiz Ghole.

Miss. Nikita Humbre.

Mr. Rizvan Mahadik and

Mr. Rajesh Mohan Mhade

INTERNATIONAL BUSINESSS


1.TARIFFS

Tariffs refers to the tax imposed on imports

TYPES

1. Specific tariffs and

2. Valorem tariffs

The purpose of tariffs is to protect the domestic industry by increasing the cost of imported goods.



Trade Policies aim to protecting the domestic industry from the competition of advanced countries through imposing quotas.

Trade policies announced by government

Tariffs

Subsidies

Import quotas

Voluntary Export Restraints

Local Content Requirements and

Administrative policies.



The following parties Gain from the Tariffs:-

Government of the tariffs importing country:-

Industry of the importing country:-

Jobs in the domestic country are saved.

Business for the ancillary industry, servicing, market

intermediation etc. is also protected.



The following parties are adversely affected by the

tariffs

Consumers of the domestic country lose as they have to pay

a higher price.

The industry of the exporting country losses the demand for

its product, sales and profits.

Example:



2.SubsidiesIn order to encourage domestic production or to protect the domestic producer from the foreign competitors, government pays to a domestic producer by reducing operations cost. Such payments are called subsidies.

Subsidies help the domestic producers in the following way’s:-Low cost producer and have all the advantages of a low cost producerEnter the foreign markets.



In 2012-13, subsidies are expected to be Rs2.16 trillion or 2.5

percent of GDP and government has set a target of bringing

them to 1.75 percent of the GDP in the next three years.

The fuel subsidies comprise of 3 major components.

The subsidy on Kerosene for the lower income group

distributed through the public distribution system (PDS), the

subsidy on domestic LPG and the subsidy on diesel.



Subsidies in developing countries

The Indian government has already started withdrawing the subsidies on fertilizers, pesticides, prices of agriculture output, output of small scale industries etc.

Basically it reduce losses and provide insurance against crop failure, market fluctuations, shifts in customer tastes and technology changes.



The government of not only developing

countries but also advanced countries provides subsidies.

Subsidies in advanced countries.

oIndustrialized country provided subsidy.

oSubsidies are only in the form of cash grant.



Advantages of SubsidiesIt helps the firms to have large scale economies and

advantages of low cost production

Firms can enter the foreign markets before the

firms of other countries and can this also have the

advantage of the first mover

The advantages of employment and tax gains to the

domestic country


April 12, 2023 VSIM KHED 12

IMPORT QUOTA

Import quotas is a direct restriction on the quantity of goods which are imported into a country.

•EXAMPLES:-

VSIM KHED


12VSIM KHED


VSIM KHED



Country Exports Imports Total Trade Trade Balance

United States 36,152.30 24,343.73 60,496.03 11,808.57

United Arab Emirates 36,265.15 38,436.47 74,701.61 -2171.32

Switzerland 1,116.98 29,915.78 31,032.76 -28,798.80

South Korea 4,201.49 13,461.25 17,662.73 -9,259.76

Singapore 13,608.65 7,754.38 21,363.03 5,854.27

Saudi Arabia 9783.81 34,130.50 43,914.31 -24,346.69

Kuwait 1,060.80 16,569.63 17,630.43 -15,508.83

Japan 6,099.06 12,514.07 18,613.14 -6,415.01

Iraq 1,278.13 20,155.94 21,434.07 -18,877.81

Iran 3,351.07 11,603.79 14,954.86 -8,252.72

Indonesia 5,331.47 14,774.27 20,105.75 -9,442.80

Hong Kong 12,278.31 8,078.58 20,356.89 4,199.74

Germany 7,244.63 14,373.91 21,618.54 -7129.28

China 13,503.00 54,324.04 67,827.04 -40,821.04

Belgium 5,506.63 10,087.16 15,593.80 -4,580.53

The largest Indian partners with their total trade (sum of imports and exports) in millions of US Dollars for calendar year 2012–2013 are as follows:


Voluntary export restraints

Voluntary export restraint is a quota on export of the domestic firm imposed by the exporting country.

Import quotas and Voluntary export restraints help domestic firms by providing protection from the foreign competitors.



International Trade RelationsA) International economic relation

1. Tariffs Policy

2. International Cartels

3. International Commodity Agreement

4. Dumping

5. Pre- Emptive Buying

6. Quotas & Licenses

7. State Trading

8. Embargoes

9. Boycott



INTERNATIONAL LAW AND BUSINESS FIRMS

Law applicable to relation bet states, but in modern times, individuals are becoming more and more subject to international law such that the law of nation is applicable to individuals in their relations with the state and even to certain interrelationship of individuals.



Material Sources of international law

International customer

Treaties Include law – making treaties and treaty contracts

Decisions of judicial or arbitrary tribunals.

Juristic Work

Decisions of the organs of international institution

conferences.



International Disputes:-Arbitration

Judicial Settlement

Negotiation, good offices, mediation, conciliation or

inquiry

Settlement under the auspices of UNO

Means of forcible or coercive settlement include;

War and non-war armed action

Restoration

Reprisals

Pacific Blockade

Intervention



Private International law

Law applicable to private parties or private corporate bodies is called private law

Private law is concern with selecting the law to the parties of transaction and enforcement of judgment.


THANK YOU



International business raj

Education

Transcript of International business raj