Tag: import and export procedure

Questions Related to import and export procedure

______ is used to establish the origin of the product and is issued by the Chamber of Commerce of the Exporters country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Certificate of Origin

  2. Bill of exchange

  3. Bill of Lading

  4. Airway bill

Show answer
Correct Option: A
Explanation:


Description

A certificate of origin is a document used in international trade. In a printed form or as an electronic document, it is completed by the exporter and certified by a recognized issuing body, attesting that the goods in a particular export shipment have been produced, manufactured or processed in a particular country.

Identify the limitation(s) of importing/ exporting form of international business.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Exporting/importing involves additional packaging, transportation and insurance costs.

  2. Exporting is not a feasible option when import restrictions exist in a foreign country.

  3. Export firms basically operate from their home country.

  4. All of the above

Show answer
Correct Option: D
Explanation:
 Disadvantages 
  • Economic dependence: Too much dependence on imports may undermine the economy of a country.
  • Restricted growth of home industries: Foreign trade may discourage the growth of domestic industries.
  • Misuse of natural resources.
  • Political exploitation.
  • Import of harmful goods.
  • Rivalry among nations.
  • Invasion of culture.

Exposure to foreign investment risks is nil or much lower in foreign trade. This is because of which of the following advantages of exporting/importing?

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. It is less complex an activity.

  2. Exporting/importing does not require much of investment in foreign countries.

  3. Firms do not directly deal with overseas customers.

  4. All of the above

Show answer
Correct Option: B
Explanation:

Foreign investments add diversity but there are risks. Investing in foreign countries is a relatively new option for individual investors. Luckily, the advent of internationally focused mutual funds and exchange-traded funds (ETFs) has made it easier.

Exporting refers to sending goods from domestic country to foreign country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Exporting means to send the goods in the international markets from the domestic country, where the goods have been produced to the foreign country where it is demanded.

Under the chairmanship of V.L.D'Souza, the Export Promotion Committee was setup in the year ________________.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. 1957

  2. 1962

  3. 1964

  4. 1966

Show answer
Correct Option: A
Explanation:

The goverment of India appointed another committee in 1957 under the chairmanship of V.L. D'souza to make a comprenshive study of all aspects of trade promotion.

The EXIM Bank provides:

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Funded assistance to promote Indian exports

  2. Non-funded assistance to promote Indian exports

  3. Both (A) and (B)

  4. Soft loan facilities

Show answer
Correct Option: C
Explanation:

EXIM bank (Exports Imports  bank of  India) provides as well as non financial assistance .Financial assistance is by provising them funds and advances for exports promotion, no financial assistance is by providing them information regarding the trends of the international market.

Importing refers to bringing goods from domestic country to foreign country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

Importing is the activity to bring the goods from a foreign country or the international market to the domestic country according to the demands in the domestic country.

Export Marketing Fund is set up by ____________.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. The IMF

  2. The IBRD

  3. The ADB

  4. The EXIM Bank

Show answer
Correct Option: D
Explanation:

Export marketing fund was setup by the EXIM(Export Import Bank of India) in the year 1986.

Goods meant for export are subjected to payment of various excise and custom duties.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

Show answer
Correct Option: B
Explanation:

The goods that are meant for export are not subjected to payment of various excise and custom duties as per the export excise duty exemption.

___________ have been established by the government of India for development of production of traditional commodities and their export.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. Department of commerce

  2. Export inspection council

  3. Export promotion council

  4. Commodity boards

Show answer
Correct Option: D
Explanation:

Commodity boards have been established by the government of India for the development of production of traditional commodities and their export.