International Business Test - 32

Duty drawback compensates or refunds exporters for the duties paid on inputs used to manufacture, the excise duties paid for the export of the products.

India is a major exporter of various goods and services, including Basmati rice, gems and jewellery, and textiles and garments. However, oil and petroleum products are not among India's major export items. In fact, India is a net importer of oil and petroleum products, relying heavily on imports to meet its domestic demand for these commodities. 

Under a diversification strategy, a firm aims to redefine its business by entering new businesses that may be related or unrelated to its existing business operations. This strategy involves expanding into new markets or industries to spread risk and explore new opportunities for growth. It may include diversification through product development, market development, or vertical integration.

New Zealand is not amongst India’s major trading partners.

The bilateral trade between India and New Zealand stood at $1 billion in 2022-23. India is New Zealand's 11th largest trading partner.

The main reason behind international business is that countries cannot produce equally well or cheaply all that they need. This principle, known as comparative advantage, suggests that countries specialize in producing goods and services where they have a relative advantage in terms of resources, technology, or expertise, and then trade these goods and services with other countries to obtain those they cannot produce as efficiently.

International business refers to cross-bordercommerce and other business transactions between governments or companies. Among other things, engaging in international business requires an understanding of the legal requirements and business and trade regulations of the country in which you are doing business.

The sources for external finances that are available are export credit, world bank group, foreign direct investment. The WTO funds are not a source of external finances.

A letter of credit is a guarantee issued by the importer's bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter. 

Permitting another party in a foreign country to produce and sell goods under your trademarks, patents, or copyrights in exchange for some fee is known as licensing and franchising. This approach allows businesses to expand their operations internationally without directly investing in foreign production facilities. By granting licenses or franchises, companies can leverage their intellectual property and brand recognition to generate revenue from international markets. 

On reaching the foreign shores, the custom duty to import certain goods are levied on the products. These custom duties are variable as per the type and size of the goods.