ASSIGNMENT

BPS

1. Discuss the concept of business policies with regard to

india international trade.
The  Foreign Trade Policy  (FTP) was introduced by the Government to grow
the  Indian  export of goods and services, generating employment and increasing
value addition in the country. The Government, through the implementation of
the  policy, seeks to develop the manufacturing and service sectors.

FOREIGN TRADE POLICIES:  Policies  enacted by the government sector of a

domestic economy to discourage imports from, and encourage exports to,
the  foreign  sector. The three most common  foreign trade policies  are tariffs,
import quotas, and export subsidies.

There are three  types of international trade: Export  Trade, Import  Trade  and
Entrepot  Trade.

The Directorate General of  Foreign Trade  (DGFT) is the agency of the Ministry
of Commerce and Industry of the Government of  India  responsible for
administering  laws  regarding  foreign trade  and  foreign  investment in  India.

Foreign trade policy is also known as Export-Import policy or EXIM Policy. The
EXIM polices are adopted by any country regarding the exports and imports
goods and services with other countries in the world. Trade policies can be of
two types, the free trade policy and the protective trade policy. In free trade
policy there is complete absence of restrictions on the exchange of goods and
services among the nations.

There is also a complete absence of tariffs, quotas, taxes and subsides on

productions, factors use and consumption. Theoretically, the free trade has
several advantages for mostly the developed countries but if we will talk about
the developing countries the free trade does not proved much productive or
proved to be a disadvantage. As earlier India has also a type of closed economy
and free trade was also absent in India till 1980’s. After 1990, by the emergence
of new industrial policy Indian trade comes with the contact of foreign countries
and became the part of 2 economy or globalised economy after 1991.
 2. What are trade blocs? Advantages of trade blocs?
A  trade bloc  is a type of intergovernmental agreement, often part of a regional
intergovernmental organization, where barriers to  trade  (tariffs and others) are
reduced or eliminated among the participating states.

There are different types of trade blocs depending on the levels of commitments and
arrangement between the members.

 Preferential Trade Areas. Preferential trade areas have the lowest level of
commitment to the reduction of trade barriers. ...
 Free Trade Area. ...
 Customs Union. ...
 Common Market. ...
 Economic Union. ...
 Full Integration.

Advantages of Trading Blocs

 Size of Market. An increase in foreign direct investment results from  trade

blocs  and  benefits  the economies of participating nations. ...
 Technology. Open  trade  leads to faster transfer of technology across borders.
 Economic Leverage. Increases economic leverage for the  trading bloc  as a
whole.

The  benefits  include competition, market efficiency,  trade  effects, economies of

scale, and foreign direct investment. Because  trade blocs  unite several international
markets, the manufacturers, producers, and other businesses within
member  countries  are also brought closer together.