International Trade Economics

GATT (General Agreement on Tariffs and Trade), established in 1947, was the precursor to the WTO which was formed in 1995 to expand and formalize the global trading system with a more comprehensive institutional framework.

WTO is the primary international organization dealing with global trade rules, dispute settlement, and ensuring trade flows smoothly between nations. While IMF handles international monetary stability and World Bank provides development financing, WTO specifically oversees international trade agreements and resolves trade disputes.

Protectionism is the economic policy of restraining trade between countries

A foreign country that is an export import intermediary is termed as an entrepot.

AIFTA stands for the ASEAN-India Free Trade Agreement, a comprehensive economic agreement between India and the Association of Southeast Asian Nations (ASEAN). The agreement aims to create a free trade area covering goods, services, and investment between India and the 10 ASEAN member states. It was signed in 2009 and has progressively reduced tariffs and trade barriers between India and ASEAN countries. The agreement is part of India's 'Look East' (now 'Act East') policy to strengthen economic ties with Southeast Asia. It has significantly boosted trade and economic cooperation between India and ASEAN nations.

Dumping is the practice of exporting goods to another country at a price lower than their domestic price or cost of production. This is often done to gain market share by undercutting local competitors. Price discrimination involves charging different prices to different consumers, while double pricing is not a standard trade term.

The Most Favored Nation clause is a core principle of the World Trade Organization, requiring members to extend any trade advantages given to one member to all other members. This prevents trade discrimination and promotes fair competition. The IMF, IBRD, and IDA are financial institutions focused on monetary policy and development, not trade.

Free Trade Agreement

G-15 (Group of Fifteen) is a summit level organization of developing countries established in 1989. It focuses on cooperation and providing input for other international organizations like WTO and IMF.

The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.

The World Trade Organization (WTO) is the international body that regulates trade between nations. One of its core principles is promoting the free flow of capital, goods, and services across borders by reducing trade barriers like tariffs and quotas. This liberalization is fundamental to WTO's mission of ensuring smooth, predictable, and free trade flows.

Foreign equity up to 100% is encouraged in export oriented units depending upon the merit of the case/proposal.

Import and export duties are not included in a country's balance of payments. Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world. These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers.

Bonded warehouse is the warehouse that is used to accept imported goods. Bonded warehouses are licensed by the government to accept imported goods before the payment of tax and customs duty by the importer of such goods. Hence, bonded warehouse is used for international trade as goods are imported from another country.