Foreign Trade

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In this presentation, we will discuss various features and types of foreign trade. We will also discuss the favorable and unfavorable conditions for trading, important legal terms and agreements that needs to be maintained, methods of foreign trade, off-shore banking and overview on European currency units.
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Foreign Trade

  1. 1. Chapter No. 1 Page No. 2 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FOREIGN TRADE FOREIGN TRADE OF A COUNTRY IS : ITS EXPORTS AND IMPORTS OF MERCHANDISE FROM AND TO OTHER COUNTRIES UNDER CONTRACT OF SALE. NO COUNTRY IN THE WORLD PRODUCES ALL THE COMMODITIES IT REQUIRES. THE COMMODITIES WHICH A COUNTRY PRODUCES IS AT ADVANTAGE, BECAUSE IT CAN EXPORT.
  2. 2. Chapter No. 1 Page No. 2 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA INLAND TRADE: IF THE PURCHASER AND THE SELLER ARE THE RESIDENTS IN THE SAME COUNTRY AND DO THE BUSINESS. FOREIGN TRADE / INTERNATIONAL TRADE: WHEN THE RESIDENTS OF TWO OR MORE DIFFERENT COUNTRIES DO THE TRANSACTIONS OF SALE AND PURCHASE OF GOODS OR SERVICES.
  3. 3. Chapter No. 1 Page No. 2 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FEATURES OF FOREIGN TRADE: INVOLVEMENT OF DIFFERENT MONETARY UNITS. IMPOSITION OF RESTRICTIONS IN IMPORT AND EXPORT BY VARIOUS COUNTRIES. IMPOSITION OF RESTRICTIONS ON RELEASE OF FOREIGN CURRENCIES. EXISTENCE OF MULTIPLE REGULATIONS, LEGAL PRACTICES AND RULES IN DIFFERENT COUNTRIES.
  4. 4. Chapter No. 1 Page No. 2 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA IMPORT FOREIGN TRADE: EXPORT IMPORT: IF THE SELLER IS ABROAD, AND THE BUYER IS IN THE HOME COUNTRY. EXPORT: WHEN THE SELLER IS IN THE HOME COUNTRY AND THE PURCHASER IS ABROAD._____________________________________________________ VISIBLE TRADE : WHICH CAN BE SEEN e.g. TRADE OF GOODS INVISIBLE TRADE: WHICH CAN NOT BE SEEN e.g. EXCHANGE OF SERVICES (TRANSFER OF TECHNICAL KNOW HOW)
  5. 5. Chapter No. 1 Page No. 2 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA DUMPING: MANUFACTURERS WHO SEND THEIR GOODS FOR SALE AT PRICES BELOW THEIR COST OF PRODUCTION TO MARKETS IN WHICH THEY DID NOT NORMALLY SELL. DUMPINGSPORADIC PREDATORY PERSISTENT WHEN A MANUFACTURER SELLS ABROAD AT A HIGHER PRICE THAN AT HOME IS A REVERSE DUMPING.
  6. 6. Chapter No. 1 Page No. 3 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA BALANCE OF TRADE: DIFFERENCE BETWEEN A COUNTRY’S IMPORTS OF MERCHANDISE AND ITS EXPORTS. WHEN A COUNTRY EXPORTS COMMODITIES IT GAINS FOREIGN EXCHANGE. IF THE IMPORTS EXCEEDS EXPORTS, IT RESULTS IN NET PAYMENT BY THE COUNTRY OF FOREIGN EXCHANGE TO OTHER COUNTRIES.
  7. 7. Chapter No. 1 Page No. 4 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA TO COME OUT OF THE UNFAVORABLE BALANCE OF TRADE POSITION CORRECTIVE MEASURES : EXPORT PROMOTION. IMPORT RESTRICTIONS. FINANCE. MONETARY MEASURES. FISCAL MEASURES. DEVALUATION.
  8. 8. Chapter No. 1 Page No. 5 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA BALANCE OF PAYMENTS IT IS A SYSTEMATIC RECORD OF ALL THE ECONOMIC TRANSACTIONS BETWEEN THE RESIDENTS OF THAT COUNTRY AND THE RESIDENTS OF FOREIGN COUNTRIES DURING A GIVEN PERIOD. THE BALANCE OF PAYMENT ACCOUNTING HAS TWO TYPES:1. CURRENT ACCOUNT.2. CAPITAL ACCOUNT.
  9. 9. Chapter No. 1 Page No. 7 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA DISEQUILIBRIUM THE DEBIT AND CREDIT ITEMS IN A BALANCE OF PAYMENTS SELDOM BALANCE. RESULT THE BALANCE OF PAYMENTS IS EITHER IN SURPLUS OR IN DEFICIT.
  10. 10. Chapter No. 1 Page No. 7 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA CORRECTING THE DEFICIT IMPORT CURTAIL: RESULTS IN BALANCE OF PAYMENTS IMPROVE, BUT WHEN IMPORTS CONSISTS OF RAW MATERIALS IT MAY NOT BE WISE TO RESTRICT. EXPORT PROMOTION: (MEASURES) REDUCING THE RATE OF INTEREST, GIVING PACKING CREDIT AND EXPORT BILL PURCHASES, DUTY DRAWBACKS, CASH INCENTIVES ABOLISHING EXPORT DUTY. MONETARY MEASURE: IF EXCESSIVE PURCHASING POWER OF A COUNTRY COMPARED WITH THE AVAILABLE SUPPLY, LENDING BANKS ARE RESTRICTED BY RAISING THE STATUTORY LIQUIDITY RATIO AND / OR BY OPEN MARKET OPERATIONS BY THE CENTRAL BANK. CONT…..
  11. 11. Chapter No. 1 Page No. 8 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA CORRECTING THE DEFICIT FISCAL MEASURES: THESE RELATE TO A GOVT.’S REVENUE AND EXPENDITURE AND INCLUDE BUDGETING FOR A SURPLUS BY PRUNING ITS OWN EXPENDITURE, LEVYING HIGH TAXES, EXTENDING THE AREAS OF TAXES. DEVALUATION: REDUCTION BY THE GOVT. IN THE COUNTRY’S OFFICIAL RATE OF EXCHANGE BETWEEN ITS OWN CURRENCY AND OTHER CURRENCIES. THIS IS EFFECTED BY REDUCING THE PAR VALUE OF THE CURRENCY IN TERMS OF GOLD.
  12. 12. Chapter No. 1 Page No. 9 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FOREIGN CONTRACTS CONTRACTS SPECIFY: QUALITY. QUANTITY. PRICE. PERIOD OF SUPPLY. MODE OF DELIVERY. TERMS OF PAYMENT OF GOODS. FREIGHT AND INSURANCE CHARGES AND THEIR MODE OF PAYMENT.
  13. 13. Chapter No. 1 Page No. 9 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FOREIGN CONTRACTS c.i.f. (COST, INSURANCE AND FREIGHT) : COST: GOODS SHOULD BE INVOICED AT THE AGREED PRICE. INSURANCE: FULLY COVERED BY INSURANCE BY THE SELLER. FREIGHT: REQUIRED FREIGHT SHOULD BE PREPAID BY THE SELLER. c.& f. (COST AND FREIGHT) COST: GOODS SHOULD BE INVOICED AT THE AGREED PRICE. FREIGHT: SHOULD BE PREPAID BY THE SELLER.o INSURANCE IS THE CONCERN OF THE BUYER.
  14. 14. Chapter No. 1 Page No. 10 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FOREIGN CONTRACTS f.o.b. (FREE ON BOARD) BUYER NAMES THE VESSEL AND SPECIFIES THE DATE BY WHICH THE GOODS ARE TO BE SHIPPED. THE RESPONSIBILITY OF THE SELLER CEASES THE MOMENT THE GOODS SOLD ARE PLACED ON BOARD. ALL EXPENSES BORNE ARE INCLUDED IN THE INVOICE. f.a.s. (FREE ALONGSIDE SHIP) SELLER IS RESPONSIBLE FOR THE DELIVERY OF THE GOODS WITHIN THE SPECIFIED TIME ALONGSIDE THE SHIP. ALL EXPENSES BORNE ARE TO THE ACCOUNT OF BUYER.
  15. 15. Chapter No. 1 Page No. 10 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA INTERNATIONAL TRADE AGREEMENTS / INSTITUTIONS GATT G.A.T.T. IS THE ABBREVIATION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE, WHICH WAS SIGNED AT GENEVA BY 23 COUNTRIES IN 1947, EFFECTIVE JANUARY 1948. IT IS A WORLD ORGANIZATION DESIGNED TO BRING ABOUT THE MAXIMUM POSSIBLE RATE OF GROWTH IN WORLD TRADE BY REDUCING TARIFF BARRIERS AMONG THE MEMBER COUNTRIES.
  16. 16. Chapter No. 1 Page No. 11 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA SPECIAL FEATURES OF DUNKEL DRAFTa) REMOVING NON-TARIFF BARRIER TO TRADE OF AGRICULTURAL COMMODITIES.b) THE ORDINARY CUSTOMS DUTIES SHALL BE REDUCED BY 36% WITHIN A MINIMUM RATE OF REDUCTION OF 15% FOR EACH TARIFF BETWEEN THE YEAR 1993 TO 1999.c) EVERY COUNTRY WILL HAVE TO IMPORT MINIMUM 3% OF THEIR CORRESPONDING DOMESTIC CONSUMPTION.d) EXPORT SUBSIDIES ON AGRICULTURE PRODUCTS SHALL BE REDUCED BY DEVELOPING COUNTRIES AT 24% OF BUDGETARY OUTLAY AND 16% QUANTITATIVE OUTLAY WITH ABOVE REQUIREMENTS.
  17. 17. Chapter No. 1 Page No. 12 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA SPECIAL FEATURES OF DUNKEL DRAFT TRIMS: AS PER REQUIREMENTS ALL EXPORT SUBSIDIES ARE PROPOSED TO BE ABOLISHED. TRIPS: THE INDIAN PATENTS ACT WOULD BE REQUIRED TO BE AMENDED WITHIN A PERIOD OF 5 TO 10 YEARS. SERVICES: TELECOM, HOTEL, CONSTRUCTIONS, COMPUTER AND MEDICAL SERVICES WILL BE OPEN TO FOREIGN FIRMS. CONT….
  18. 18. Chapter No. 1 Page No. 12 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA SPECIAL FEATURES OF DUNKEL DRAFT TEXTILE & CLOTHING: QUANTITATIVE RESTRICTIONS ON TEXTILE IMPORTS FROM INDIA BY EUROPEAN COUNTRIES. TARIFFS ON IMPORTS BY EUROPEAN COMMUNITY ARE PROPOSED TO BE REDUCED. AGRICULTURE: DUE TO REDUCTION IN SUBSIDIES BY THE MEMBER COUNTRIES, THE PRICE OF AGRO-PRODUCTS ARE EXPECTED TO GO UP AND INDIAN EXPORTERS CAN FETCH BETTER PRICES AND DUE TO SEED PATENTING, THE INDIAN FARMERS CAN GET A BETTER QUALITY.
  19. 19. Chapter No. 1 Page No. 12 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA UNDER THE TERMS OF AGREEMENT INDIA WAS TO MEET ALL OBLIGATIONS TILL YEAR 2005, OF THE TRIPS AGREEMENT. INDIA HAS TO ACCEPT APPLICATIONS FOR PRODUCT PATENTS ON PHARMACEUTICALS AND AGRICULTURE CHEMICALS. INDIA HAS TO GIVE EXCLUSIVE MARKETING RIGHTS FOR 5 YEARS TO HOLDERS OF PRODUCT PATENTS ISSUED IN ANOTHER WTO MEMBER COUNTRY. AFTER 2005 INDIA WILL HAVE TO PROVIDE PATENT PROTECTION TO PHARMACEUTICAL PRODUCTS IN ADDITION TO PRODUCTION PROCESSES UNDER INDIA PATENTS ACT 1970.
  20. 20. Chapter No. 1 Page No. 13 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA THE EUROPEAN ECONOMIC COMMUNITY (EEC) (EUROPEAN COMMON MARKET) THE TREATY PROVIDES FOR FREE MOVEMENT OF GOODS, PERSONS, SERVICES AND CAPITAL AMONG THE MEMBER COUNTRIES, AND HAS LED TO THE ESTABLISHMENT OF A CUSTOMS UNION AMONGST THEM IN ORDER TO CORRECT THE DISEQUILIBRIUM IN THE BALANCE OF PAYMENTS. (FRANCE, WEST GERMANY, ITALY, BELGIUM, HOLLAND AND LUXEMBOURG)
  21. 21. Chapter No. 1 Page No. 13 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA OPEC(ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES) CONSISTS OF IRAQ, SAUDI ARABIA, UAE, KUWAIT, ALGIERS, LIBYA, NIGERIA, INDONESIA, VENEZUELA, EQUADOR etc. CONTROLS THE PRICES OF PETROL AND PETROLEUM PRODUCTS AND PROTECTS THE INTEREST.
  22. 22. Chapter No. 1 Page No. 14 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA ASIAN CLEARING UNION (ACU) HEAD QUARTER TEHERAN (IRAN) ESTABLISHED ON 9TH DECEMBER1947 MEMBERS: THE RESERVE BANK OF INDIA. THE BANGLADESH BANK. THE BANK OF MARKAZI OF IRAN. THE NEPAL RASHTRA BANK. THE STATE BANK OF PAKISTAN. THE CENTRAL BANK OF SRI LANKA. THE UNION OF BURMA BANK. (JOINED IN APRIL 1977)
  23. 23. Chapter No. 1 Page No. 14 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA OBJECTIVES OF ASIAN CLEARING UNION (ACU) TO FACILITATE PAYMENTS FOR CURRENT INTERNATIONAL TRANSACTIONS WITHIN THE ESCAP REGION. TO REDUCE / ELIMINATE USE OF EXTRA-REGIONAL CURRENCIES TO SETTLE TRANSACTIONS BY PROMOTING THE USE OF PARTICIPANTS CURRENCIES. TO EFFECT THEREBY ECONOMIES IN THE USE OF FOREIGN EXCHANGE AND A REDUCTION IN THE COST OF MAKING PAYMENTS FOR SUCH TRANSACTIONS. TO CONTRIBUTE TO THE EXPANSION OF TRADE AND PROMOTION OF MONETARY COOPERATION AMONG THE COUNTRIES OF THE AREA.
  24. 24. Chapter No. 1 Page No. 15 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA ALL ELIGIBLE PAYMENTS BETWEEN INDIA AND THE OTHER MEMBER COUNTRIES EXCEPT NEPAL ARE REQUIRED TO BE SETTLED THROUGH THE ACU. PAYMENTS EXCLUDED FROM SETTLEMENT THROUGH THE ACU ARE ON ACCOUNT OF : TRAVEL. CONTRACTS MADE UNDER LOANS FROM AN INTERNATIONAL FINANCIAL INSTITUTION LIKE THE WORLD BANK. EXPORT / IMPORT TRANSACTIONS UNDER BILATERAL LINES OF CREDIT BETWEEN THE GOVT. OF INDIA AND THAT OF OTHER MEMBER COUNTRY. DEFERRED PAYMENTS FACILITIES EXTENDED BY ONE MEMBER COUNTRY TO ANOTHER MEMBER COUNTRY.
  25. 25. Chapter No. 1 Page No. 16 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA BENEFITS ACCRUING FROM THE ACU APPRECIABLE SAVINGS OF THE LIQUID FOREIGN EXCHANGE RESERVES. REDUCTION OF THE WORKING BALANCES IN THE FOREIGN EXCHANGE. ELIMINATION OF THE NEED FOR DOUBLE CONVERSION OF CURRENCIES AND THEREBY SAVINGS IN THE COST OF SETTLEMENT. CURTAILMENT OF THE TIME NEEDED BEFORE FOR SETTLEMENT OF TRANSACTIONS BY THE ELIMINATION OF THE INTERMEDIARY CORRESPONDENTS.
  26. 26. Chapter No. 1 Page No. 16 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA EURO - MONEY IT IS A MONETARY SYSTEM OF ELEVEN EUROPEAN COUNTRIES. STARTED FUNCTIONING SINCE JAN 1999. THIS IS THIRD STRONG CURRENCY AFTER DOLLAR(U.S). NEITHER IT HAS GOLD BACKING NOR ANY NATURAL GOVERNMENT. FROM JAN 2002, CURRENCIES OF ALL ELEVEN COUNTRIES ARE CONVERTED INTO EUROS. COUNTRIES- ITALY, GERMANY, AUSTRIA, BELGIUM, FINLAND, FRANCE, IRELAND, LUXEMBURG, NETHERLANDS, PORTUGAL AND SPAIN. GREAT BRITAIN, FRANCE, DENMARK, EGYPT AND SWEDEN HAVE NOT JOINED THE EURO DUE TO ECONOMIC AND POLITICAL REASONS.
  27. 27. Chapter No. 1 Page No. 17 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA METHODS OF FOREIGN TRADE ON OPEN ACCOUNT BASIS: WHERE THE CREDIT STATUS OF THE IMPORTER IS HIGH, GOODS MAY BE SENT DIRECT TO HIM IN EXPECTATION OF PAYMENT IN DUE COURSE ON PRESENTATION OF RELATIVE DOCUMENTS THROUGH BANK. EXPORTS ON THIS BASIS ARE NOT PERMISSIBLE IN INDIA. UNDER BILL OF EXCHANGE: THE EXPORTER MAY DRAW BILL OF EXCHANGE ON THE IMPORTER FOR THE VALUE OF THE EXPORTS AND COLLECT THE BILLS THROUGH A BANK. UNDER LETTER OF CREDIT: THE EXPORTER MAY AGREE TO EXPORT THE GOODS ONLY AGAINST A LETTER OF CREDIT OPEN IN HIS FAVOUR.
  28. 28. Chapter No. 1 Page No. 18 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA EXIM BANK (IMPORTANT ITEMS) GRANTING LOANS AND ADVANCES IN AND OUTSIDE INDIA FOR PURPOSE OF EXPORT AND IMPORT. REFINANCING LOANS AND ADVANCES GRANTED BY BANKS AND OTHER NOTIFIED FINANCIAL INSTITUTIONS FOR EXPORT AND IMPORT. REDISCOUNTING USANCE EXPORT BILLS OF BANKS. PROVIDING INVESTMENT FINANCES TO INDIAN COMPANIES TOWARDS THEIR EQUITY PARTICIPATION IN JOINT VENTURES ESTABLISHED ABROAD. GRANTING OBLIGATIONS, JOINTLY WITH BANKS ON BEHALF OF PROJECT EXPORTERS ENGAGED IN THE EXECUTION OF CONSTRUCTIONS AND TURNKEY CONTRACTS ABROAD.
  29. 29. Chapter No. 1 Page No. 20 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FACILITIES PROVIDED BY EXIM BANK a) CONSULTANCY AND TECHNOLOGY SERVICES FINANCE PROGRAMME. b) OVERSEAS INVESTMENT FINANCING PROGRAMME. c) PRE-SHIPMENT CREDIT. d) FINANCIAL ASSISTANCE TO E.O.U. e) COMPUTER SOFTWARE EXPORTS. f) EXPORT MARKETING FUNDS. g) EXPORT PRODUCT DEVELOPMENT. h) PROJECT PREPARATORY SERVICES OVERSEAS.
  30. 30. Chapter No. 1 Page No. 23 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FREE PORT / FREE TRADE ZONE A FREE PORT IS A PORT DECLARED BY THE GOVERNMENT OF THE COUNTRY IN WHICH IT IS LOCATED. AT A FREE PORT SHIPS BELONGING TO ANY COUNTRY MAY LOAD OR UNLOAD CARGO WITHOUT HAVING TO PAY CUSTOMS OR ANY OTHER DUTIES BARRING THE HARBOUR CHARGES. FREE TRADE ZONE IS AN AREA DECLARED WITH A VIEW TO GETTING THE BENEFITS OF FREE TRADE WITH OTHER COUNTRIES. THERE ARE NO QUANTITATIVE RESTRICTIONS ON IMPORTS INTO OR EXPORTS FROM FREE PORT OR A FREE TRADE ZONE.
  31. 31. Chapter No. 1 Page No. 23 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA FREE TRADE ZONE IN INDIA THERE ARE TWO FREE TRADE ZONES IN INDIA.1. KANDLA FREE TRADE ZONE IN GUJARAT. FOR THE IMPORT OF CAPITAL GOODS, RAW MATERIALS, COMPONENTS etc. THE PROVISION OF FINANCE AT CONCESSIONAL RATE. EXEMPTION FROM GUJARAT SALES TAX ON SALES MADE WITHIN THE ZONE. ALLOTTED 92 TENEMENTS TO INDUSTRIALISTS, NUMBER OF UNITS NOW OPERATING IS 40.2. ELECTRONIC EXPORT PROCESSING ZONE (EEPZ) SANTA CRUZ MUMBAI. 30 UNITS SET UP WITH 100% EXPORT ORIENTED ELECTRONIC EQUIPMENT, COMPONENTS AND CONSUMABLE DURABLES.
  32. 32. Chapter No. 1 Page No. 24 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA OFF-SHORE BANKING OPERATIONS BENEFITS TO HOST COUNTRIES: INFLOW OF INTEREST-FREE FOREIGN CAPITAL INTO THE COUNTRY. EARNING FOREIGN EXCHANGE FOR SERVICES IN CONVERTING RAW MATERIALS INTO FINISHED GOODS. EXEMPTION FROM MINIMUM RESERVE REQUIREMENTS. LOW OR NON-EXISTENT TAXES AND LEVIES. ENTRY IS RELATIVELY EASY, ESPECIALLY FOR LARGE INTERNATIONAL BANKS. LICENSE FEES ARE GENERALLY LOW. CLOSE PROXIMITY TO THE IMPORTANT LOAN OUTLETS OR DEPOSIT SOURCES.
  33. 33. Chapter No. 1 Page No. 25 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA OFF-SHORE BANKING OPERATIONS THE OFF-SHORE BANKING UNITS SET UP IN SEZs ARE ALSO BE ALLOWED 100% INCOME-TAX EXEMPTION FOR 3 YEARS AND 50% FOR NEXT 2 YEARS UNDER SECTION 80-LA OF THE INCOME TAX ACT 1961. THERE ARE 27 SPECIAL ECONOMIC ZONES IN INDIA TILL 2005. THEY ARE LOCATED IN : KOLKATA, MADHYA PRADESH, U.P., RAJASTHAN, GUJARAT, KARNATAKA, NEW MUMBAI, A.P.,ORISSA, KERALA, TAMIL NADU, JHARKHAND, MUMBAI STATES.
  34. 34. Chapter No. 1 Page No. 25 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA IBU INTERNATIONAL FINANCE LTD. THE FIRST EVER INTERNATIONAL FINANCIAL ORGANIZATION SPONSORED BY A CORPORATION OF INDIAN NATIONALIZED BANKS, SUCH AS INDIAN BANK, BANK OF BARODA AND UNION BANK OF INDIA WAS ESTABLISHED IN HONG KONG AS A DEPOSIT TAKING ORGANIZATION WITH OFF-SHORE AND OTHER ACTIVITIES. THE ORGANIZATION IS ELIGIBLE TO ACCEPT DEPOSITS OF HONG KONG DOLLARS 50,000 AND ABOVE.
  35. 35. Chapter No. 1 Page No. 26 International FinanceFOREIGN TRADE CONSUMER PROTECTION IN INDIA EUROPEAN CURRENCY UNIT (ECU) ECU HAS BEEN RECOGNIZED AS A FOREIGN CURRENCY OFFICIALLY BY ITALY, FRANCE, BELGIUM AND LUXEMBOURG AND DE FACTO BY THE UNITED KINGDOM, EIRE, NETHERLANDS AND DENMARK. JAPAN AS WELL AS THE RESERVE BANK OF INDIA HAS ALSO RECOGNIZED THE ECU FOR THE PURPOSE OF FOREIGN EXCHANGE TRANSACTIONS.
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