International Business Test - 29

International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world.

The firms which are engaged in exporting activities generally work primary in their domestic nation so it is understood that they have a limited presence in foreign market that signifies their disadvantage in foregin market not advantage.

The parent firm is able to exercise full control over its operations in foreign countries as the parent firm invests 100% equity capital into its foreign operating firms.

Licensing refers to permitting another party in a foreign country to produce and sell goods under trademarks. patents or copy rights in lieu of some fee. Example: Lay's are produced and sold all over the world by local retailers in foreign countries through licensing.

The software company promoted by Narayana Murthy is Infosys. Mr. Murthy is an IT industrialist and worked with Indian Institute of Management, Ahmedabad, before starting Infosys Limited, a multinational company which provides technology, business consulting, outsourcing services and engineering. Set up in Bengaluru, it is the second largest IT firm in India.

The shipping bill is the main document on the basis of which customs office grants permission for the export. The shipping bill contains particulars of the goods being exported, the name of the vessel, the port at which goods are to be discharged, country of final destination, exporter's name and address, etc. 

A shipping order is a document issued by the shipping company. It is an instruction to the captain of the ship that the specified goods after their custom clearance at a designated port be received on board.

In an import transaction, various documents are involved to ensure the smooth movement of goods from the exporter to the importer. These documents typically include the shipping bill, bill of lading, and certificate of origin, among others. However, a shipment advice is not typically required in connection with an import transaction. A shipment advice is a document sent by the seller to the buyer, informing them that the goods have been shipped. While it is important for communication between the parties involved, it is not a mandatory document for customs clearance or other import-related processes.

A mate receipt is a receipt issued by the commanding officer of the ship when the cargo is loaded on board and contains the information about the name of the vessel, berth, date of shipment. description of packages, marks, and numbers, condition of the cargo at the time of receipt on board the ship, etc. 

Bill of Entry for Home Consumption. This Bill of Entry is prepared when the importer is paying the customs duty for a whole lot of goods and taking its delivery. This Bill of Entry is white.