REPORT                                    On                        MERCHANDISE TRADEMerchandising is the methods, practic...
The two trade concepts-      Customs-based trade statistics cover the physical movement of goods as      they are reflecte...
merchandise trade deficit that does not mean the economy is not doing wellbecause it can be a net importer of goods but a ...
Merchandise trading
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Merchandise trading


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Merchandise trading

  1. 1. REPORT On MERCHANDISE TRADEMerchandising is the methods, practices, and operations used to promote andsustain certain categories of commercial activity. In the broadest sense,merchandising is any practice which contributes to the sale of products to a retailconsumer.In marketing, one of the definitions of merchandising is the practice in which thebrand or image from one product or service is used to sellanother. Trademarked brand names, logos, or character images are licensed tomanufacturers of products such as toys or clothing, which then make items in oremblazoned with the image of the license, hoping theyll sell better than the sameitem with no such image.In the supply chain, merchandising is the practice of making products in retailoutlets available to consumers,Merchandise Trade definition -Goods which add or subtract from the stock of material resources of a country byentering (imports) or leaving (exports) its economic territory. Goods simply beingtransported through a country (goods in transit) or temporarily admitted orwithdrawn (except for goods for inward or outward processing) do not add to orsubtract from the stock of material resources of a country and are not included inthe international merchandise trade statistics. In many cases, a countrys economicterritory largely coincides with its customs territory, which is the territory in whichthe customs law of a country applies in full.
  2. 2. The two trade concepts- Customs-based trade statistics cover the physical movement of goods as they are reflected on customs documents. Thus, they only cover merchandise trade. Various product coding systems are used to classify the traded goods. Balance of Payments (BOP)-based trade statistics are based on the flow of money. The balance of payments (BOP) is an accounting of a countrys international transactions over a certain time period, typically a calendar quarter or year. It shows the sum of the transactions (purely financial ones, as well as those involving goods or services) between individuals, businesses, and government agencies in that country and those in the rest of the world.These statistics cover both merchandise trade and trade in services.Merchandise trade only includes trade in goods, not services nor capital transfersand foreign investments. Official merchandise trade statistics measure the level,month-over-month and year-over-year changes in total trades, exports and imports.Balance of merchandise trade is equaled to total exports minus general imports.Exports are defined as total exports which include 1. Domestically produced goodsand 2. Re-exports, that are re-exporting of goods which are imported andwarehoused in U.S. General Imports constitute of imports for immediateconsumption channels and warehouses. Merchandise trade is reported in currentU.S. dollars with no inflation adjustments. Merchandise trade report is publishedby the U.S. Department of Commerce, Bureau of the Census and Foreign TradeDivision (FTD).While merchandise trade can be used as an indicator of the overall health of theeconomy, one must be cautious and avoid misinterpreting merchandise tradedeficit as trade deficits. This is because trade deficit is sometimes usedinterchangeably with merchandise trade deficit, deficit in goods and services orcurrent account deficit. Deficit in goods and services includes significant economicservices such as tourism, financial services, transportation, andtelecommunications. Therefore, it is important to distinguish that merchandisetrade only refers to trade in goods whereas trade deficit can also refer to deficit ingoods and services or current account deficit. In this case, even if U.S. is running a
  3. 3. merchandise trade deficit that does not mean the economy is not doing wellbecause it can be a net importer of goods but a net exporter of services.Merchandise trade as a share of GDP is the sum of merchandise exports andimports divided by the value of GDP, all in current U.S. dollars.INDIA 2007 2008 2009 2010 30.5 42.4 30.6 31.7India’s merchandise trade is on way to touch $750 billion in the FY`12, accountingfor 68 per cent of the country’s $1.1 trillion economy which is fast integrating withthe rest of the world.The DGCI&S reports that merchandise trade exports touched $176.6 billion in2009/10 which was 4.7 per cent less than in 2008/09. Because of currencyfluctuations, the value of exports show a smaller decline in rupee terms and therupee value of merchandise exports in 2009/10 is actually almost the same as in2008/09. The value of merchandise imports in 2009/10 was 8.2 per cent lower at$278.7 billion and 4 per cent lower in rupee terms. Advance Release calendarSDDS Data Unit of Period of Latest Previous PercentageCategory Description Latest Data Data Data Changeand Component from previous to latest periodTotal Exports US $ Aug,2010 16644 13586 22.5(f.o.b) MillionTotal Imports US $ Aug,2010 29679 22449 32.2(c.i.f) MillionTotal Trade US $ Aug,2010 -13035 -8862 47.1Balance of Millionpayment