DIBM401 FOREIGN TRADE OF INDIA JULY AUG 2025

Description

SESSION	JULY- AUG 2025
PROGRAM	MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER	IV
COURSE CODE & NAME	DIBM401 FOREIGN TRADE OF INDIA

 

 

 

Assignment Set – 1

 

 

Q1. Explain the scope of international trade. Elaborate Heckscher-Ohlin model of international trade. 5 + 5           

Ans 1.

Scope of International Trade

International trade refers to the exchange of goods, services, capital, and technology across national boundaries. Its scope has expanded significantly due to globalization, technological advancement, and liberalized trade policies. At the most basic level, international trade enables countries to obtain goods and services that are either not available domestically or can be produced more efficiently elsewhere. This leads to better resource utilization and enhanced consumer choice.

A major scope of international trade lies in the specialization of production. Countries focus

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Q2. Write short note on following:

2000. India’s merchandise trade post 2000.
2001. Composition of International trade. 5+5

Ans 2.

(a) India’s Merchandise Trade Post-2000

India’s merchandise trade has undergone substantial transformation since the early 2000s, driven by economic liberalization, globalization, and policy reforms. The post-2000 period marked deeper integration of India into the global trading system, supported by reduced tariffs, improved logistics, and trade agreements with multiple countries and regional blocs.

Exports diversified significantly during this phase. Traditional exports such as textiles,

 

Q3. Write a detailed note on Institutional Framework for Export Promotion. 10         

Ans 3.

Institutional Framework for Export Promotion

The institutional framework for export promotion refers to the network of government bodies, financial institutions, regulatory authorities, and trade promotion organizations that collectively support and facilitate a country’s export activities. In a developing economy like India, this framework plays a crucial role in enhancing export competitiveness, expanding global market access, and ensuring policy coordination.

At the apex level, the Ministry of Commerce and Industry is the central authority responsible

 

 

Assignment Set – 2

 

Q4. What are Export Incentives and what are the benefits of it to Exporters. 5+5       

Ans 4.

Meaning of Export Incentives

Export incentives are policy measures and financial or non-financial benefits provided by the government to encourage exporters to increase the volume and value of exports. These incentives aim to neutralize the disadvantages faced by domestic exporters in international markets due to higher production costs, infrastructural gaps, or global competition. Export incentives form an integral part of a country’s foreign trade policy and are designed in line with international trade regulations.

Export incentives may be fiscal, financial, or procedural in nature. Fiscal incentives include

 

 

Q5. Write notes on the following:

1. WTO & dispute settlement.
2. IPR 5+5

Ans 5.

(a) WTO and Dispute Settlement

The World Trade Organization (WTO) is the principal international institution governing global trade relations among nations. Established in 1995, the WTO provides a multilateral framework of rules aimed at promoting free, fair, and predictable trade. One of its most critical functions is the dispute settlement mechanism, which helps resolve trade conflicts among member countries in an orderly and rule-based manner.

The WTO dispute settlement system is designed to ensure that trade disagreements do not

 

 

Q6. Write notes on the following:

1. EOU scheme
2. SEZ and India 5+5

Ans 6.

(a) Export Oriented Unit (EOU) Scheme

The Export Oriented Unit (EOU) scheme is an important export promotion initiative introduced to encourage production of goods and services exclusively for international markets. The scheme was designed to boost exports, attract foreign investment, and enhance India’s integration with global trade. Under this scheme, units are set up with the primary objective of exporting their entire production, except for a small portion permitted to be sold in the domestic tariff area under prescribed conditions.

EOUs are provided a range of fiscal and procedural benefits to make export production cost-