...Question (1a) Import Substitution Industrialization is an economic policy that emphasises the replacement of imports with domestic production. Many Latin American Countries adopted this policy in a bid to achieve self-sufficiency by reducing its dependence on foreign imports. By using this policy, the Government will either nationalise or heavily subsidise certain industries and even employ protectionist measures on infant industries. Heavy taxes will be placed on imports and exports to discourage local merchants from exporting and in turn, reducing the amount of goods for their local customers. There are many disadvantages in promoting import substitution strategies that will ultimately lead to lower growth rates and possible future recession for the country. Firstly, local industries will become more inefficient over time. Local industries that have long enjoyed the heavy subsidies and protectionist measures from the government will have no incentive to improve themselves. As they only cater to the domestic market, if demand remains constant, an increase in production will only drive down prices. Hence, these industries will not push for increased production, resulting in continued inefficiency. Furthermore, with the high taxes imposed on exports, local companies will not sell their goods overseas. By only selling to the domestic market, they do not enjoy economies of scale. Certain industries need to sell to a large market in order to be profitable, and a domestic market...
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...Import Services | HSBC | Krungsri | L/C Opening Commission | • 0.25% per quarter or minimum THB1,200.- | • ¼% Amount credited to importer’s account multiply by the times of current with a minimum THB 1,000.- | Cable / Swift charges for LC opening | •THB1,000.- •Plus an addition of THB500.- for cable over 4 pages | •THB1000.- per page •More than 3 pages were counted THB500.- per page | L/C amendment | •THB500.- | •¼% of Amount credited to importer’s account added or depend on period renewal (3 months for one period or 90 days) | Cable / Swift changes for LC amendment | •THB600.- | •THB500.- per page | Revolving L/C commission | •0.25% per quarter (applies to reinstatement unit maturity) | • ¼% Amount credited to importer’s account multiply by the times of current with a minimum THB 1,000.- | Standby L/C commission | •2.50% per annum or minimum THB1,200.- | • ¼% Amount credited to importer’s account multiply by the times of current with a minimum THB1,000.- | Back to Back L/C | - | •¼% Amount credited to importer’s account multiply by the times of current with a minimum THB1,000.- | Import Bills for Collection (not under LC) | •0.25% up to THB1,000,000.- plus 0.125% thereafter or minimum THB1,200.- | •⅛% of transfer amount | Engagement Commission for Usance LC(bill under Usance LC) | •2.50% per annum or minimum THB1,200.- | •2.5% per annum of the amount in bill collection to obtain the documents | Engagement Commission for Sight LC(bill under Sight LC)...
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...Export and Import Management I. Research for Exports When entering a culturally and linguistically different part of the world, managers need to understand a completely new way of commercial thinking that is based on a different culture and works on a different set of premises. The first step is to use available secondary data to research potential markets. The identification of an appropriate overseas market involves the following criteria: * Socioeconomic characteristics (e.g., demographic, economic, geographic, and climatic characteristics) * Political and legal characteristics * Consumer variables (e.g., lifestyle, preferences, culture, taste, purchase behavior, and purchase frequency) * Financial conditions On the basis of these criteria, an exporter can form an idea of the market segments in a foreign market. II. Export Market Segment There would be geographical and psychographic segments in many different countries to which the firm can export the same core product it sells in domestic markets without any significant changes. Products that can be standardized could satisfy basic needs that do not vary with climate, economic conditions, or culture. A standardized product is the easiest to sell abroad logistically because the firm incurs no additional manufacturing costs and is able to use the same promotional messages across different regions in different countries across the world. Where it is not possible to sell standardized products, the firm could...
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...INTERNATIONAL ECONOMICS The 3 commodities chosen are 1) Tobacco leaf 2) Walnuts 3) Buffalo meat 1) Tobacco leaf: Tobacco, one of the most widely-used addictive substances in the world, is a plant native to the Americas and historically one of the half-dozen most important crops grown by American farmers. From 1617 to 1793 tobacco was the most valuable staple export from the English American mainland colonies and the United States. Until the 1960s, the United States not only grew but also manufactured and exported more tobacco than any other country. The largest tobacco company in the world by volume is China National Tobacco Co... World tobacco leaf exports from 2010-2011 averaged 1.98 million tonnes per year which the FAO expects to grow by 1% to 2.2 million by 2012. Today developing nations are responsible for almost 65% of global tobacco exports, while developed countries account for the remainder. Of the countries below, the domestic economies of Zimbabwe and Malawi depend most heavily on tobacco exports to the rest of the world. Production by country: Country or region Production in thousands of tons China 2,298.8 India 595.4 Brazil 520.7 United States 408.2 European Union 314.5 Zimbabwe ...
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...Top 10 Import/Export Business Ideas That Work By Dave Bui Small businesses in the import/export arena first need to identify the products or services they want to carry. Here are the top 10 import/export ideas you can start on immediately: 1. Food products: The easiest option for export is food-related products. It is easy to find companies that manufacture food products locally for domestic consumption. Many of them never export. If the products are of good quality, you can link up with them and export a part of their produce. 2. Clothing: This is a year-round business, where demand never dries up. Specialized clothing, particularly for women, makes for a great import-export business. If you have access to unique dyeing techniques, printing styles and embroidery methods, you will have a very profitable import-export business. 3. Jewelry: As with clothing, there is always a market for jewelry around the globe. Customized jewelry, ethnic jewelry, handcrafted jewelry make for excellent import/export products. 4. Toys: This is yet another category where there is perennial demand. There is a cultural component associated with toys and, as with jewelry, people are often willing to experience for themselves the trends prevalent in other nations. The matryoshka (“nesting”) dolls of Russia, the cane and bamboo toys of India, the kendama (ring-and-pin toy) of Japan, the piaji (kids’ game) and the yo-yos of China are very popular and are also a sound business idea for import/export...
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...1a. Pier 1 Imports started its journey as a single store in San Mateo, California in 1962 in the industry of specialty retail goods and experienced a rapid expansion within few years. The company established its corporate headquarters in Fort Worth, Texas in 1966 and despite being in business for only four years, it already had 16 store locations. In 1972, Pier 1 Imports joined the New York Stock Exchange as a public company with a symbol of PIR and it already had 123 stores by then (“Pier 1 Imports History”, www.Pier1.com). Later in 1986, Pier 1 Imports was incorporated as a Delaware corporation and as of February 28, 2015, the company had 984 stores in the United States and 81 stores in Canada along with an e-Commerce website (10-K, p.5)....
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...DOCUMENTARY CREDIT TRACKING SYSTEM OF IBBL An internship report submitted for the satisfaction of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION By S.M. Tanvir Ferdous Id: B033112 Department of Business Administration International Islamic University Chittagong, Dhaka Campus Spring 2008 -1- DOCUMENTARY CREDIT TRACKING SYSTEM OF IBBL An internship report submitted for the satisfaction of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION Submitted To Md. Shariful Haque Assistant Professor Prepared By S.M. Tanvir Ferdous Id: B033112 Date of Submission: January 5, 2008 Department of Business Administration International Islamic University Chittagong, Dhaka Campus -2- Letter of Transmittal January 5, 2008 Md. Shariful Haque Assistant Professor DBA, IIUC Dhaka Campus Subject: Submission of the Internship Report Dear Sir, I am glad to inform you that I have completed my internship report on “Documentary Credit Tracking System of IBBL”. I have gathered extensive knowledge while I was doing this report. Though there was some limitation and difficulties but I tried my level best to eliminate those limitations with your help and your guideline. Since this is my first full form of co-relational study, I tried my level best to finish this study as professional manure. I highly appreciate the opportunity to prepare this report. Yours sincerely, S.M. Tanvir Ferdous Matric...
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...something, I’ll look on the local market first and then go onto the internet. If I can find it cheaper on the internet and I have a means such as the Visa Cards that allow people buy from outside. Even if it’s a car there would cars sitting at the car ranch but I’ll still import a car. Those car sellers have global competitors but they do not know and this is affecting their business” he said. “Also there are Ghanaians traditional goods and services that are so preferred by the Diaspora but we are unable to sell them abroad via online. Example is the Ghanaians fabrics and artifacts sold on the Osu Oxford street and other places. Imagine the foreigners who usually patronize these items find them online and import and receive them why cant that create a market for us” he addded. He adds that the more attention needs to be paid to the issue due to its implications for macro economic variables such as the exchange rate. “We have a traditional import and export regime which the experts would use to sort of determine our exchange rate. That is the theory that if we export more and import little our exchange rate would appreciate and the vice-versa” he stated. “But what do we see today? There is an aspect of import that we have not taken into consideration and that is the online where people are purchasing and...
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...(Date) (Instructor’s name) (Unit’s name) Factors to consider before importing. The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an importer who is based in the country of import. And in this case we are the importers. Some of the questions to consider are: Are there trade agreements? And with whom? This is one of the major factors to consider before carrying out the importation process. We will need to obtain market import information about the coffee beans in order to establish effective trade agreement with the right supplier. This information can be obtained from the internet, visiting potential markets and exhibitions and from established importers. After selecting the right supplier of the coffee beans establishment of trade agreements follows like placing the order and delivery of the goods through proper use of documents but before then we should ensure we have the trading license, import license and the import permit. Trade agreements are established with the supplier once he/she has also complied with the relevant regulations. Some of the trade agreements include: the method of payment, transfer of liabilities during transportation among others. This trade agreements are facilitated by the availability of International Commercial Terms which defines responsibilities regarding title, risks and costs, and eliminates possibilities...
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...How Exports impact GDP Tiffany Cook March 19, 2015 Econ 214 (gwartney, 2015) “Gross domestic import is the market values of all final goods and sales” There are various factors that make up the subcategories of the United States, Gross domestic product. This definition tells us how we ultimately arrive at a calculations of the gross domestic products, but it does not shed light on the economies output and input and the benefits or setbacks each service may have. Some ways that we can look at expenditure approach is to know the wealth of what our goods and services can provide, also how these goods and services can be a come up or a setback dependent upon what we do more of. The expenditure approach allows us to see what our consumers have been benefiting from with the goods and services that have been provided to them by the US. Foreigners make up a portion of the GDP with imports, but in order for us to be on the winning side we would have to provide other countries with more of our products for them to buy or consume. Therefore the greatest impact on GDP is what we export in order to gain a profit from the consumer. If we were the consumer we would be looking to do the same. The economies main goal is to make the money and keep more of it. Exports allow us to do more of that, imports gives us resources to supply the source products for us to export. (Deekay, 2009)States that “export instability stimulates inflation. When inflation rises in a country the products tend...
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...is the single most important commodity that holds the position of a key factor in each and every economy of the world. The importance of oil has reached such a level at which there is no country in the world, which doesn’t need oil and its by-products, and if somehow it doesn’t have much reserves of oil to meet their domestic demand, these nations are ready to import the product at any cost. India is one such country which is much dependent on its imports to fulfill the domestic consumption demand as it has a much lower level of production. The share of petroleum import was negligible in 1950-51 and was only 1 percent of the total imports in 1960-61. It reached an exceptionally high peak of 41.95 percent in 1980-81 due to the implementation of policies to boost automobile sales. POL imports showed a substantial expansion of 44 percent in 1980-90 and a further rise of 72.5 percent during 1990-91. The massive increase in POL imports was mainly due to the sharp upsurge in crude oil and petroleum products prices in the world market consequent to the Gulf crises. There was a recorded increase of 45 percent in oil imports in 2000-2001 mainly on the account of a sharp and sustained increase in the international prices. At present, India is the 6th largest consumer country in the world having a consumption of 2.2 million barrels per day, and a production of only 0.8 barrels per day. This leaves the country with a huge deficit in the demand-supply scenario and thus 70% of the consumption...
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...Title: “Evolution of E-Business & Alibaba.com” Answer to the question number 1 Benefits of using sites like Alibaba.com • Cost effective way to do import & export business • This type of site is regarded as primary channel for getting information, sourcing goods or services, finding suppliers • This helps to expand the market reach and grow business • This type of site acts as an online global trade fair. • Helps small business to become independent importers & exporters. • Different types of costs are minimized here and thus, best product with fewer prices can be found. • Eliminates time constraint • Selection becomes easy from classified product list • This type of business spreads trade opportunities throughout the globe. Costs of using sites like Alibaba.com • To become registered user, yearly payment is mandatory • Only registered users can get details information about seller. • Certification enhances the authenticity and it requires money. The companies like Grieve can do bellowed things as an export strategy. • Create a website like Alibaba.com or get registered in Alibaba.com to reach international buyers. • Get certification from different sources and post that to Online. Answer to the question number 5 As E-commerce sites like Alibaba.com uses technology as the primary way to develop others import & export business, they need to be transparent and currently they are giving more focus on holding crystal clear image. To uphold this image, Alibaba...
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...Question 4. The imports of products into a country cannot provide an accurate market potential of the product. The market potential of a product manufactured by a firm depends on the total demand of the product and the total supply of the market. One thing to take a look at is quantity demanded. The quantity demanded of any product by customers is not constant. It varies with the price of the product. For example a decrease in price usually increases the quantity demanded. When a new product enters a new market through importation there is an increase in its price. This is due to the additional costs of shipping the product from the country it was manufactured in and the import duty and other taxes imposed by the nation. Therefore, a company could be exporting a lot of products to a new market but be losing profit margins because of increased expenses. To estimate the market potential of a product it is essential to look at the actual customers are. Another thing to consider is why they want the product and how the price affects them. Another reason is that they may be making the product domestically. Even when basic need is identified, research look for current trade flows to see what level of activity is in place. Just because goods are currently imported doesn’t mean they will be imported in specific countries. Initial screening evaluated the basic need for a product or service in a specific market. It evaluates markets relevant to product characteristics...
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...and large-scale entrepreneurs have been contributing directly and indirectly to the growth further. And one of the key incentives provided by the government to exporters is duty drawback. To enable exports to flourish, the government has put in motion private sector-friendly policies and a number of supportive inducements. Exporters, among others, are allowed bonded warehouse facilities, cash incentive, and duty exemption and duty drawback facilities to make them profitable and remain competitive in export markets. Duty drawback refers to refund of duties and indirect taxes paid for inputs and utilities for exports. Import duties, VAT, supplementary duties and other duties paid on imported raw materials can be drawn back by firms under the duty drawback facility. The drawback facility is provided to exporters and deemed exporters of goods and services who import inputs or raw materials for the purpose of exportation only, after local value addition. But, only those who are not already enjoying bonded warehouse and cash incentive facilities are given this incentive. Firms may also get drawback on the fuel consumed at the stage of production. The duty...
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...spiked downward (more yen per dollar) for after a few days. No. There is no limit to its ability to intervene. Why is a stronger yen such a bad thing for japan? Isn't a stronger currency value an indication of confidence by the global markets in the economy and policies of a country? A stronger yen give a bad impact for the economic growth in Japan especially in exports. It effect if foreign buyer would find its exports more expensive. A strong yen make Japan’s products less competitive compared with the other rivals such as China. Lastly , a strong yen is not good for exporters because makes goods more expensive in other country and exports of goods become reduce. Not necessarily because at importers side it will forcing down import prices and drive exporters in bankruptcy. It means that indication of confidence and policies of country is not necessarily. If currency intervention has such a poor record, why do you think countries like Japan or Switzerland or Chile continue to do it? Although currency intervention has a poor record of these countries need to continue to achieve multiple objectives with overall control inflation, maintain...
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