International Marketing - Policy Framework
A policy framework is a rational architecture built to synchronize policy documentation into groupings and categories that help employees to search and understand the contents of various policy documents easily. They assist in the planning and development of the policies for an enterprise.
The changes taking place in the world has a major impact on the global market and economy of many countries across the world. There is a huge competition among business enterprises with the advancement and implementation of technology.
India’s EXIM Policy
The different policy related decision taken by the government in foreign trade is known as Indian EXIM Policy. In simple words, imports and exports from and to the country. Precisely, export promotion scopes policies and procedures regarding the trade Policy is declared by the Central Government. Exim policy is called Foreign Trade Policy. It focuses on improving export potential, developing export performance, motivating foreign trade.
The main objectives of EXIM policy are as follows −
To enhance economic growth by facilitating access to important raw materials, intermediaries, and other items required for production
To make the Indian agriculture, industry and services more efficient and thus, develop their competitiveness
To create new employment opportunities
To supply quality products at reasonable prices
The main objectives of the Export Import Policy 1997 -2002 are as under −
To boost the economy by increasing economic exercises and making it a universally familiar economy and to also create channels and obtain profits with improved global existence
To enhance economic growth by facilitating access to important raw materials, intermediaries, and other items required for production
To bring in technological reforms and make the Indian agriculture, industries, and services more efficient thus, developing their competitiveness.
To create new employment opportunities
To provide quality products at reasonable prices
The main objectives of the Export Import Policy 2002-2007 are as follows −
To enhance economic growth by facilitating access to important raw materials, intermediaries, and other items required for production
To bring in technological reforms and make the Indian agriculture, industries, and services more efficient thus, developing their competitiveness while creating new employment opportunities
To supply customers with good quality products and services at globally competitive rates while at the same time building a level playing field for the domestic producers.
The EXIM policy plays a very essential role in the import and export of goods from and to India. It was designed to ease the transactions and improve the economic conditions of India.
Export-Import Documentation
Export and import documentation forms a vital part of all the international trade transactions. It supplies importers and exporters with the records related to cost and accounting, and banks with directions and accounting tools for collecting payments.
Purchase order − International transactions rely on the client’s purchase order. Basically they engage a large commercial client, the purchase product is the main agreement form and it constitutes the first offer.
Commercial invoice − This includes all the data related to international sale. The product or quantity or cost or delivery and payment conditions as well as the taxes involved also go into the invoice.
Packing list − It is an elaborate version of the commercial invoice but does not include cost information. This includes invoice number, capacity, number of packages, shipping marks, and a copy of packing list is affixed with the shipment itself.
Irrevocable letter of credit L/C − Here the exporter gets paid if records prove that quality products have been delivered. He needs to produce the corresponding documents for the letter of credit to be issued to him. This letter of credit cannot be cancelled once it is issued.
CMR document − It is an international project note used by drivers, operators and forwarders. The document monitors the activities involved in the carriage of products by road universally as mentioned in the agreement.
Bill of lading B/L − It is a document produced by the agent of a carrier to a shipper, signed by the captain, agent or the exporter. It contains the terms and conditions on which transportation is made and also the products shipped.
In short, export and import documentation is a onetime licensing procedure followed by almost all the countries interested to participate in international marketing. In India, IEC number is used as the unique identification code for documenting import and export.
GDP
GDP is one of the primary indicators used to measure the strength of a nation's economy. It reflects the aggregate value of products and services (in dollars) manufactured within the given timeframe. It represents the size of the economy. Generally, GDP is presented to compare the economy of the current quarter or year with that of the previous quarter or year. For example, if the year-to-year GDP is up 6%, this means that the economy has grown by 6% over the previous years.
Calculating GDP is not an easy task. It is complicated and calls for expertise from the economists. The basic concept for calculating GDP can be understood in two ways −
Practically, both measures should approximately give the same total. The income approach, also known as GDP(I). It is computed by summing up total compensation to employees, gross profits for integrated and non-integrated enterprises, and taxes less any subsidies. The expenditure method is the more common approach and is computed by summing up total consumption, investment, government spending and net exports.
