International Business - Class 11 Commerce Business Studies - Extra Questions

The captain or commanding officer of the ship issues the Mate's Receipt. This paperwork confirms that the items have been loaded onto the ship. This receipt specifies the conditions of the item. If the commodities are in good condition and are correctly packaged. Then a clean Mate's receipt is issued by the captain but if he is not satisfied about the packing and conditions of the goods then he will issue a foul Mate's Receipt. The exporter must insist on clean Mate's receipt only.

A proforma invoice is a confirmed purchase order that includes the terms and conditions under which the customer and supplier agree on the cost of the product. A proforma invoice is used to create a sale quote. This is sent before the commercial invoice is sent.

1. EPZ - Export Processing Zone.
2. SEZ - Special Economic Zone.

Two agreements of world trade organisation are as follows:-

1. General Agreements on Tariffs and Trade (GATT).
2. Agreement on Textile and Clothing (ATC).

The main objective of WTO is to frame rules and regulations of trade between different nations.

Under a CFR contract, the exporters are responsible for the cost and freight of transporting the goods to the importer's country's port of destination. After that, the importer is responsible for any loss or damage to the goods.

This certificate is issued by the export inspection agency. This certifies that the export consignment has been inspected as per the specification of quality control and inspection act.

Under CIF contract, the exporter is responsible for all costs and freight till the importer's port. Along with these expenses, the exporter has to take a make insurance policy also. After the destination port, the importer bears the risk of loss or damage to goods.

This document is given by the exporter to export inspection agency. This is to inform the agency to send an inspector for inspection of goods to be exported.

This document is similar to a bill of lading, with the exception that it is issued by an airline rather than a shipping company. When products are carried by air, the exporter receives an Airway Bill instead of a Bill of Lading.

The exporter issues this document to inform the shipping company about the commodities that will be transported on their ship.

World Trade Organization is an inter-governmental organization that is concerned with the regulation of international trade between various nations. The aims of world trade organization are: 

The year of establishment of the international institutions are 

The matches of the conferences taken place for the establishment of the international institutions are:

1. World Trade Organisation was formed in April 1994 based on signing of the final Act of the Uruguay Round by the member nations of GATT (General Agreement on Tariffs and Trade).
2. The headquarters of the WTO is in Geneva, Switzerland.
3. The main objectives of WTO is to ensure rules for international trade and to provide a forum for negotiating and monitoring further trade liberalization.
4. To resolve trade disputes and to ensure that developing countries, secure a better share of growth in World Trade.
5. To ensure full employment and broad increase in effective demand and transperancy of decision making process.
6. World Trade Organisation gives five types of subsides like cash subsidies, tax concessions, loan guarantees, stock purchases, procurement subsidies, thereby reducing the cost of doing business.
7. At present, there are 164 member countries in WTO .
8. The structure of WTO consists of a Director General, four Deputy Director General and other 600 official staff from around 80 member countries.

1. Merchandise is considered to be items not sold in the grocery section of the store. Meijer considers supermarket items to be those found in the traditional supermarket and general merchandise to be those not found in a traditional supermarket.
   
2. Trade-in Services refers to the sale and delivery of an intangible product, called a service, between a producer and consumer.
   
3. A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country.
   
4. Portfolio investments are investments in the form of a group (portfolio) of assets, including transactions in equity securities, such as common stock, and debt securities, such as banknotes, bonds, and debentures.
   

The main reasons for doing international business are:-

1. The countries can not produce equally well or cheaply all that they need.
2. There is an unequal distribution of natural resources among different countries.
3. The availability of different factors of production such as land, labour, capital, and raw material differs among the different nations.
4. There is not even a single country, which is in a better position to produce better quality products at a lower cost.