Subject Code: IMT-73

Subject Name : EXPORT PLANNING & PROCEDURE

Notes:
a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts.
b. Answers of Ist Set (Part-A), IInd Set (Part-B), IIIrd Set (Part – C) and Set-IV (Case Study) must be sent
together.
c. Mail the answer sheets alongwith the copy of assignments for evaluation & return.
d. Only hand written assignments shall be accepted.
A. First Set of Assignments: 5 Questions, each question carries 1 marks.
B. Second Set of Assignments: 5 Questions, each question carries 1 marks.
C. Third Set of Assignments: 5 Questions, each question carries 1 marks. Confine your answers to 150
to 200 Words.
D. Forth Set of Assignments: Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

ASSIGNMENTS
PART– A
1. What is the importance of International Trade and how it helps in controlling the Balance of Payment.

2. What are the major steps which are announced by India to accelerate export growth rate of the country?
Discuss in reference to EX-IM Policy (2004-2009).

3. Government of India has build /development policy and service institution to help exporter. Explain in
detail role of Ministry of Commerce and other institution.

4. What preparation, an exporter must make to enter a foreign market? Discuss advantages and
disadvantages in entering direct or indirect foreign market.

5. What is the role of Export Promotion Councils? Name few important one’s and Explain two in details.

PART– B
1. What is the role of export documents? What is the purpose of Bell of Lading? Explain different types of
Bill of Ladings.

2. What is the criteria to select a Foreign Market .What are the thrust area’s decided by Government of India
for Improving Export?

3 What is the export contract? Give the steps of agreement and important issues to be incorporated in it.

4. Why do we need marine insurance cover for export shipment? Describe the principles of governing the
contract of insurance

5. Explain the role of forwarding and clearing agents bringing out their importance in the operation of export
and import business.
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 PART – C
1. How are India’s exports financed? How far the Export Credit Guarantee Corporation helps the exporters
in obtaining finance?

2. Why do we require pre-shipment inspection of export goods? Explain the procedure for the pre-shipment
inspection followed by Export Inspection Agency under the consignment wise system of inspection.

3. What is the role of documentation in export trade? What are the major documents used in exports?
Discuss by citing some relevant examples in support of your answer.

4. Explain the various stages involved in the processing of an export order. What documents must
accompany an export shipment?

5. Explain the purpose of Tariff and non-Tariff Barriers. Explain the duties of the seller and the buyers under
FOB, CIF contract.

CASE STUDY-1
Ms. Nirupama and Ms Sunita are very good friends. After completing their graduation in literature from a
reputed college in Delhi University, they got a change in modelling. This aroused their interest in the fashion
industry. They decided to join fashion institute to acquire proficiency in the field of designing of the ready
made garments and completed two year course in designing. They have been working in the fashion
industry for the last 3 years. Recently, they had been to USA in connection with a fashion show organized
by one of their clients. They found that there is a lot of potential for the export of ready made garments to
USA and other West European countries from India. They are now motivated to start their own export
business in the field of ready made garments particularly women’s designer wear. They are willing to invest
Rs. 5 lakhs each and have strong financial support to invest more money as well. As far as product is
concerned, they have sufficient knowledge of fabrics, designs accessories, dyeing, printing and fabrication
process. Ms. Sunita has also completed her MBA in International marketing from a reputed institute in Delhi.
They have decided to establish their export business but do not know about the formalities involved in the
establishment of their export business. They have approached you as a consultant in foreign trade for
guidance. You are required to prepare a detailed report for their guidance so that they can establish their
export business.

CASE STUDY-2

XYZ Pvt. Ltd. Has been engaged in the business of plastic toys for the last 5 years in New Delhi. Mr. X, the
Managing Director of the company had conducted a study to understand the export potential of his range of
toys. After a detailed study of the market reports on toys, he came to the conclusion that there was a lot
potential for the export of toys to the countries in the Middle East and West European Countries. He has his
own manufacturing unit at Okhla in New Delhi and commands 23 per cent share of the market for toys in
India. The value of production, sales and earnings before interest and taxes (EBIT) for the last 5 years are
as follows:

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 Year Production (Rs. Sales (Rs. In EBIT (Rs.
In Lakhs) Lakhs) In lakhs)
1995 50 60 5

1996 95 104 9
1997 135 162 15
1998 180 216 20
1999 230 276 35

He now plans to diversify into exports but does not know how to begin. He has engaged you as his export
trade consultant and desires to know the initial formalities to start the export business and how to plan for
marketing of the toys. You are required to prepare a detailed note advising him the initial steps that he
should take to diversify into the area of exports and complete Export Marketing Plan for execution.

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