English, asked by arjun225, 11 months ago

essay on foreign products in India

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Answered by fabgirlrock
0
When a businessman of a country buys goods from a businessman of another country or sells goods to him, such a business is called Foreign Trade or International Trade. India’s trade with Russia, USA, France, Japan, and Pakistan are the examples of foreign trade.

International trade may be defined as the trade between different countries. Purchase from and sale of goods and services outside the country is called the international trade. It is also known as foreign trade. Foreign trade plays an important role in accelerating the process of economic growth of a country.

Essay # 2. Types of Foreign Trade:

Foreign trade can be divided into the following three categories:

i. Import Trade:

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When goods are purchased from a foreign country, it is called import trade.

ii. Export Trade:

When goods are sold to other countries, it is called export trade.

iii. Entrepot Trade:

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Sometimes goods are imported from one country with the purpose of exporting them to some other countries, it is called entrepot trade.

Essay # 3. Different Prices in Foreign Trade:

The following are the important price quotations in foreign trade:

i. Laco or Local Price:

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It is also known as ex-factory price. It covers the costs of goods plus some profit to the seller. The buyer is expected to bear all expenses for lifting and transporting goods from the factory or warehouse of the seller.

ii. F.O.R. or Free on Rail Price:

It means the loco price together with the cost of carrying goods to the railway station and loading them in the wagons.

iii. F.A.S. or Free Alongside Ship:

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It includes all costs and charges for bringing the goods from the factory to the side of the ship. It includes the railway freight but not include the charges of loading the goods on board the ship.

iv. F.O.B. or Free on Board Price:

This price includes all charges upto the loading of goods on board the ship and export duty if any. It is the total of F.A.S. price, ship-loadings charges and export duty.

v. C. & F. or Cost and Freight Price:

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