RM 4th sem

1.MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge. Once can also

define research as a scientific and systematic search for pertinent information on a

specific topic. In fact, research is anart of scientific investigation. The Advanced

Learner’s Dictionary of Current English lays down the meaning of research as “a

careful investigation or inquiry specially through search for new facts in any

branch of knowledge.” Redman and Mory define research as a “systematized effort

to gain new knowledge.” Some people consider research as a movement, a

movement from the known to the unknown. It is actually a voyage of discovery.

We all possess the vital instinct of inquisitiveness for, when the unknown confronts

us, we wonder and our inquisitiveness makes us probe and attain full and fuller

understanding of the unknown. This inquisitiveness is the mother of all knowledge

and the method, which man employs for obtaining the knowledge of whatever the

unknown, can be termed as research.

Research is an academic activity and as such the term should be used in a technical

sense. According to Clifford Woody research comprises defining and redefining

problems, formulating hypothesis or suggested solutions; collecting, organising

and evaluating data; making deductions and reaching conclusions; and at last

carefully testing the conclusions to determine whether they fit the formulating

hypothesis. D. Slesinger and M. Stephenson in the Encyclopaedia of Social

Sciences define research as “the manipulation of things, concepts or symbols for

the purpose of generalising to extend, correct or verify knowledge, whether that

knowledge aids in construction of theory or in the practice of an art.”

Research is, thus, an original contribution to the existing stock of knowledge

making for its advancement. It is the persuit of truth with the help of study,

observation, comparison and experiment. In short, the search for knowledge

through objective and systematic method of finding solution to a problem is

research. The systematic approach concerning generalisation and the formulation

of a theory is also research. As such the term ‘research’ refers to the systematic

method consisting of enunciating the problem, formulating a hypothesis, collecting

the facts or data, analyzing the facts and reaching certain conclusions either in the

form of solutions(s) towards the concerned problem or in certain generalisations

for some theoretical formulation.

2.OBJECTIVES OF RESEARCH

The purpose of research is to discover answers to questions through the application

of scientific procedures. The main aim of research is to find out the truth which is

hidden and which has not been discovered as yet. Though each research study has

its own specific purpose, we may think of research objectives as falling into a

number of following broad groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it

2. To portray accurately the characteristics of a particular individual, situation or a

group

3. To determine the frequency with which something occurs or with which it is

associated with something eles

4. To test a hypothesis of a causal relationship between variables

3.TYPE OF RESEARCH

BASIC RESEARCH

The research which is done for knowledge enhancement, the research which does

not o expand man's knowledge, not to create or invent something. There is no

obvious commercial value to the discoveries that result from basic research. Basic

research lay down the foundation for the applied research. Dr.G.Smoot says

“people cannot foresee the future well enough to predict what is going to develop

from the basic research” Eg:-how did the universe begin?

APPLIED RESEARCH

Applied research is designed to solve practical problem of the modern world,

rather than to acquire knowledge for knowledges sake. The goal of applied

research is to improve the human condition. It focus on analysis and solving social

and real life problems. This research is generally conducted on large scale basis, it

is expensive. As such, it often conducted with the support of some financing

agency like government , public corporation , world bank, UNICEF, UGC,Etc,.

According to hunt, “applied research is an investigation for ways of using scientific

knowledge to solve practical problems” for example:- improve agriculture crop

production, treat or cure a specific disease, improve the energy efficiency homes,

offices, how can communication among workers in large companies be improved?

Applied research can be further classified as problem oriented and problem solving

research. Problem oriented research:- research is done by industry apex body for

sorting out problems faced by all the companies. Eg:- WTO does problem oriented

research for developing countries, in india agriculture and processed food export

development authority (APEDA) conduct regular research for the benefit of agri-

industry. Problem solving:-this type of research is done by an individual company

for the problem faced by it. Marketing research and MARKET  research are the

applied research. For eg:- videocon international conducts research to study

customer satisfaction level, it will be problem solving research. In short, the main

aim of applied research is to discover some solution for some pressing practical

problem.

QUANTITATIVE RESEARCH

Quantitative research aim to measure the quantity or amount and compares it with

past records and tries to project for future period. In social sciences, “quantitative

research refers to the systematic empirical investigation of quantitative properties

and phenomena and their relationships”. The objective of quantitative research is

to develop and employ mathematical models, theories or hypothesis pertaining to

phenomena. The process of measurement is central to quantitative research

because it provides fundamental connection between empirical observation and

mathematical expression of quantitative relationships. Statistics is the most widely

used branch of mathematics in quantitative research. Statistical methods are used

extensively with in fields such as economics and commerce. Quantitative research

involving the use of structured questions, where the response options have been

Pre-determined and large number of respondents is involved.eg:-total sales of soap

industry interms of rupees cores and or quantity interms of lakhs tones for

particular year, say 2008,could be researched, compared with past 5 years and then

projection for 2009 could be made.

QUALITATIVE RESEARCH.

Qualitative research presents non-quantitative type of analysis. Qualitative research

is collecting, analyzing and interpreting data by observing what people do and say.

Qualitative research research refers to the meanings, definitions, characteristics,

symbols, metaphors, and description of things. Qualitative research is much more

subjective and uses very different methods of collecting information,mainly

individual, in-depth interviews and focus groups. The nature of this type of

research is exploratory and open ended. Small number of people are interviewed in

depth and or a relatively small number of focus groups are conducted. Qualitative

research can be further classified in the following type. I. Phenomenology:-a form

of research in which the researcher attempts to understand how one or more

individuals experience a phenomenon. Eg:-we might interview 20 victims of

bhopal tragedy. II. Ethnography:- this type of research focuses on describing the

culture of a group of people. A culture is the shared attributes, values, norms,

practices, language, and material things of a group of people. Eg:-the researcher

might decide to go and live with the tribal in Andaman island and study the culture

and the educational practices. III. Case study:-is a form of qualitative research that

is focused on providing a detailed account of one or more cases

IV. Grounded theory:- it is an inductive type of research,based or grounded in the

observations of data from which it was developed; it uses a variety of data sources,

including quantitative data, review of records, interviews, observation and surveys

V. Historical research:-it allows one to discuss past and present events in the

context of the present condition, and allows one to reflect and provide possible

answers to current issues and problems. Eg:-the lending pattern of business in the

19th century.

In addition to the above, we also have the descriptive research Fundamental

research, of which this is based on establishing various theories

INDIAS EXPORT TRADE

MEANING

The term export means shipping the goods and services out of the port of a

country. The seller of such goods and services is referred to as an "exporter" and is

based in the country of export whereas the overseas based buyer is referred to as an

"importer". In International Trade, "exports" refers to selling goods and services

produced in the home country to other markets.

Export of commercial quantities of goods normally requires involvement of the

customs authorities in both the country of export and the country of import. The

advent of small trades over the internet such as through Amazonand eBay have

largely bypassed the involvement of Customs in many countries because of the low

individual values of these trades. Nonetheless, these small exports are still subject

to legal restrictions applied by the country of export. An export's counterpart is

an import.

The import or export of any foreign products in India are regulated under the

Foreign Trade (Development and Regulation) Act. Under this act the Central

government of India can make the provisions for development and also regulates

the foreign trade. Also the Central government can prohibit, restrict and regulates

the export activities. Under this act every importer or exporter must obtain an

Importer Exporter Code number 'IEC' code number from Director of General of

Foreign Trade.

Importance of exports

Employment.

Growth in exports can create employment. For example, the growth in car exports

have created many job in car industries, such as BMW factory in Oxford, and Nissan

in Sunderland. Traditionally export jobs have been in manufacturing industries – an

important source of full-time employment, especially in industrial regions. In recent

years, exports have become more diversified with a greater reliance on service sector

based exports.

Current account deficit.

The strength of exports has a large role in determining the current account deficit. In

the past few decades, the INDIA has had a persistent current account deficit, which

many attribute to the INDIA’s relative poor export performance.

Increased Resources

Developing countries can benefit from free trade by increasing their amount of or

access to economic resources. Nations usually have limited economic resources.

Economic resources include land, labor and capital. Land represents the natural

resources found within a nation’s borders. Small developing nations often

have the lowest amounts of natural resources in the economic marketplace. Free

trade agreements ensure small nations can obtain the economic resources needed to

produce consumer goods or services.

Improved Quality of Life

Free trade usually improves the quality of life for a nation’s citizens.

Nations can import goods that are not readily available within their borders.

Importing goods may be cheaper for a developing country than attempting to

produce consumer goods or services within their borders. Many developing nations

do not have the production processes available for converting raw materials into

valuable consumer goods. Developing countries with friendly neighbors may also

be able to import goods more often. Importing from neighboring countries ensures

a constant flow of goods that are readily available for consumption.

Better Foreign Relations

Better foreign relations is usually an unintended result of free trade. Developing

nations are often subject to international threats. Developing strategic free trade

relations with more powerful countries can help ensure a developing nation has

additional protection from international threats. Developing countries can also use

free trade agreements to improve their military strength and their internal

infrastructure, as well as to improve politically. This unintended benefit allows

developing countries to learn how they should govern their economy and what

types of government policies can best benefit their people.

Production Efficiency

Developing countries can use free trade to improve their production efficiency.

Most nations are capable of producing some type of goods or service. However, a

lack of knowledge or proper resources can make production inefficient or

ineffective. Free trade allows developing countries to fill in the gaps regarding

their production processes. Individual citizens may also visit foreign countries to

increase education or experience in specific production or business methods. These

individuals can then bring back crucial information about improving the

nation’s production processes.

Types of export

Exporters can be basically classified into two groups

Manufacturer Exporter:

As the exporter has the facility to manufacturer the product he intends to

export and hence he exports the products manufactured byhim.

Merchant Exporter:

An exporter who does not have the facility to manufacturean item. But, he

procures the same from other manufacturers or from the market and exports

the same.An exporter can be both a manufacturer exporter as well as a

merchantexporter, he can export product manufactured by him or he can export

items bought fromthe market.Once it is decided to export, it is mandatory on your

part to follow certain procedures, rules and regulations as prescribed by various

regulatory authorities such asDGFT, RBI, and Customs. These procedures,

rules and regulations are laid down in theExim Policy 2004-09, Exchange

Control Manual, Customs Act etc. Accordingly Exportdocuments are required to

be prepared keeping in view of the requirement of the foreign buyers and our

regulatory authorities

METHODS OF EXPORTING

DIRECT EXPORTING.

The typical exporting system is a company-owned export department, in which a

manufacturer sells directly to companies or consumers in foreign countries. In this

arrangement, the company has complete control over the marketing and

distribution of its goods and services, distribution, sales, pricing, and other

business choices. Most Indian exporters, however, don't utilize this system. Many

companies depend on one or several specialized export channels outside their

organizations. Most companies choose direct and indirect routes. Direct exports are

sold through foreign-based parties. Indirect exports are sold through home-based

proxies or resellers. Both methods can be implemented through either merchants or

agents. In these cases, merchants actually assume ownership of the goods, as

opposed to agents, who only represent the manufacturer or owner. Bartering is

another method that manufacturers may use to sell their goods abroad.

A direct merchant is an organization in a foreign country that buys goods in the

India , or another country, and then proceeds to sell the goods in their own country.

The merchants usually offer complementary services to their buyers such as

maintenance, parts sales, and technical support. A direct merchant often has a close

relationship with the exporter, giving the merchant exclusive rights to sell and

service the goods.

There are several different types of direct agents. Some direct agents, for example,

are paid by Indian firms on commission, have a contract, and usually do not sell

competing products. The exporter trains the representative on the product and

provides them with literature. Purchasing agents are similar to commission agents.

They are sent to a foreign country by their company or homeland to purchase

products for them. The agent is usually paid a fee or commission for this work.

Purchasing agents are only in the target country for a short period of time and then

leave.

INDIRECT EXPORTING.

When a company uses a home-based merchant or agent to find and deliver goods

to foreign buyers it utilizes indirect exporting. This method of exporting poses the

least amount of risk and expense because it is relatively easy to start up and has a

moderate up-front capital investment. Indirect agents act as intermediaries between

the exporter and buyer and facilitate the flow of goods.

There are several different types of indirect agents. One is an export management

company (EMC). EMCs usually represent several companies in one or more

industries. The agent charges the domestic company a fee or commission and in

return provides the manufacturer with access to foreign channels of distribution

and knowledge of foreign markets. Another type of indirect agent is a Webb-

Pomerene Association. There are about forty such associations in the United

States. These associations are composed of competing manufacturers for the

purpose of exporting. In this case, commission agents represent buyers in foreign

markets. The foreign buyer places an order and the commission agent solicits bids

from domestic manufacturers. The lowest bidder is usually receives the order and

is compensated by the foreign buyer with a fee or commission. This is an

advantage for the exporter because the payment is usually received immediately

and it takes little effort to complete the sale. Other forms of indirect trading include

foreign freight forwarders, which manage overseas shipments for a fee; brokers,

which bring buyers and sellers together, but do not handle or distribute the goods;

and export agents, who represent the manufacturer, and act under their own name.

Top ten importer from India

Top ten importers from India, by value of trade in US$m and share of total

Country 2012-2013 (Apr- Sep) %Share (2012-2013 (Apr- Sep)

USA 19704.05 13.87

UAE 18601.71 13.09

SINGAPORE 6652.77 4.68

CHINA 6417.32 4.52

HONG KONG 6137.9 4.32

SAUDI ARAB 4636.29 3.26

NETHERLANDS 4458.24 3.14

U K 4112.26 2.89

GERMANY 3491.77 2.46

BRAZIL 3042.64 2.14

Top 5 Exported Products from India

Home Textiles

The colors and designs of Indian textiles are some of the most popular in the

world. People are drawn to them because they are warm and earthy and delightful

to the eyes. More importantly, Indian textiles are well made and last for years.

Wooden and Stone Handicrafts

Hand-carved figures from India are not only beautiful to look at, they are also

unique. The designs are often related to Hinduism or Buddhism (two of the

world’s largest religious philosophies), so they are often purchased by followers

from around the world. However, even non-followers are attracted to these works

of art, because they add a sense of harmony and balance to their environment.

Indian Food Products

Indian cuisine has always been loved by the world, but people in the past believed

it was too difficult to make at home. Today, attitudes are changing, and the

demand for Indian food products is increasing fast. This is especially true in the

United States, where two popular home cooking television shows are currently

teaching the general public how to make Indian dishes with ease in their own

kitchens.

Ayurveda Products

With an increased interest in whole body living and health care around the globe,

many people want to learn more about how they can practice Ayurveda in their

own home. They are looking for reliable, safe products that can supplement their

regular health care regimen, and many of these products are exported from India

(since Ayurveda is a Hindu system of medicine that is native to the country).

Music and Movies

Types of Strategies Used in Export Marketing

Effective Marketing Action Plan

A calculated and aggressive marketing strategy is essential to export marketing. To

implement export marketing correctly, you must do it in correct stages to ensure

export sales growth. According to Export.gov, it is vital for a company's

international business plan to define where it stands relative to potential markets,

and to clearly lay out its objectives for them. A strategic action plan focuses

marketing targets by collecting and analyzing relevant information, accounting for

restrictions, and laying out the steps for an action approach. A company must

formulate obtainable objectives, as well as a corresponding timetable to make them

reality, and maintain the flexibility to adjust objectives if conditions change.

Pricing Strategies

Pricing strategy refers to changes in the prices of products that business owners

make to persuade consumers to buy their products. Pricing strategies are useful for

export marketing if you do not have many competitors in the target country that

offer the same product as you do, or if you are new to that specific market and you

want consumers to try your product. Types of pricing strategies include discounts,

promotions, membership special pricing and bundle pricing.

Online Marketing

Online marketing is just as crucial today for an export business as it is for a

national business, since people in most countries have some level of access to the

Internet and its benefits, and online shopping is still a growing trend. Online

marketing includes online ads, websites and email marketing. Facebook and

Google ads are some of the most common online marketing strategies, and people

in most countries have access to them. You can purchase advertising on specific

websites, but most online ads work through keywords. Your ad appears when a

user uses words similar to those from your ad in a search, or navigates to similar

sites.

Traditional Marketing

Traditional marketing strategies can be just as effective in promoting your products

in other countries as they are in your own country. Banners, billboards, pamphlets,

print advertising, word-of-mouth and business cards are some of the most common

forms of traditional marketing. A key difference is that to apply this type of

marketing strategy to an export business, you must study the culture of your target

market, and tailor your message to the market. Your marketing strategies are only

as effective as they are relevant to your consumers' lives.

Barriers of Exporting

There are some traders that would argue that exporting is no different to doing

business in the local market. It is all about doing good business and making the

right decisions. The reality is, however, that the foreign marketplace is often very

different from that in South Africa.

Foreign environment as a barrier to trade

To begin with, there are social, cultural, economic, legal, political, technical and

physical differences between South African and the rest of the world. After all,

other countries speak different languages (e.g. German, French or Chinese), they

use different currencies (such as the dollar or the yen), they adhere to different

standards (think of the 110V power supply in the US), they follow different laws

(such as Islamic law) and they are often governed by different politics (such as

communism or socialism). These factors all contribute to making exporting more

difficult - that is, they are barriers to exporting. These factors are all related to the

different environments that you will encounter abroad and we have discussed them

in more detail a separate section - click here for more information about the foreign

environments you will need to deal with when exporting. Besides for the different

environments that you will encounter abroad (which we have said are barriers to

trade in their own right), there are also tariff and non-tariff barriers to trade that

you should be aware of. These are discussed below:

Tariff barriers

A tariff is a tax that is placed on imported goods by governments. Governments do

this for several reasons:

They may wish to restrict the amount of imported goods coming into the

country in order to protect or encourage a positive trade balance. If a country

imports more than it exports, it will have to use valuable foreign exchange to

pay for these goods - this is referred to as a negative trade balance or a trade

deficit. Since a country's foreign exchange holdings represents direct wealth

to the country, as more foreign exchange leaves the country to pay for

imported goods so the country becomes relatively poorer. Governments try

to prevent this by placing tariffs (taxes) on imported goods.

They may wish to protect a local industry from foreign competition. This is

often done where the industry in question is still very young and susceptible

to foreign competition. The government will then place a tax on imported

goods that compete with goods being produced by that industry, thus making

these imported goods more expensive compared with locally produced

goods. In so doing, the expectation is that consumers will buy more of the

locally produced goods thereby helping the industry to grow. Once the

industry is better established the intention is normally to withdraw the tariff

so that the local industry can compete normally with foreign competitors.

Some countries introduce tariffs in order to generate additional revenues for

the country. This is often done in the case of luxury goods.

Non-tariff barriers

Any barrier to doing business over international borders and that is not a

tariff barrier, is classified as a non-tariff barrier. As the various environments

that you are likely to encounter in foreign markets represent barriers in their

own right, they are also therefore a form of non-tariff barrier - these

environments have been discussed in some detail elsewhere - click here for

more information.

Other non-tariff barriers include the following:

o Quotes - Quotas are defined as a specific unit or currency limit

applied to a particular type of good. Quotes are thus quantitative

restrictions applied to the import of goods and have the effect of either

barring goods from a market altogether, or increasing the price of the

goods in that market.

o Licensing requirements - Some goods may only be imported only if

they have been issued with import licences by the authorities (such as

in the case of armaments). While licensing in itself should not hinder

the export process, some countries issue only a limited number of

licenses (thereby excluding late entrants from the market), or they

may make the licensing process so cumbersome as to make it

impossible or extremely difficult to obtain the license.

o Customs and administrative entry procedures - These procedures,

while they may be applied uniformly, are often so cumbersome and

complex that they represent a major trade restriction in their own

right. What is more, local manufacturers within the target market are

generally not subject to the same procedures (except in instances

where they may be using imported raw materials or components), and

this places the exporter at a disadvantage compared to local firms.

o Standards - This category is described as including unduly

discriminating health, safety, and quality standards that make it

difficult for exporters to comply with these standards, thereby

effectively barring them from that market.

o Government participation in trade - It is quite common for

governments to follow discriminatory public purchasing activities (i.e.

that favour buying local) as an effective way to lock out international

competitors.

o Charges on imports - A few countries may apply port-of-entry taxes

or levies on imported goods. The purpose of such a tax is usually to

offset infrastructure costs at a port, for example, but such levies often

stay in place long after their intended purpose has been achieved.

o Exchange controls - One of the more complete forms of non-tariff

barriers, exchange controls represent a government monopoly on all

dealings in foreign exchange. South Africa is an example of a country

that still applies exchange controls on its trading community. Local

firms therefore have to obtain permission to buy the foreign exchange

they need to import goods and services and exporters also need to pay

their foreign exchange earnings back to the commercial banks within

seven days of receiving such income. No company is allowed to hold

foreign exchange without permission from the Reserve Bank.

o Voluntary export restraints (VER) - A VER is a 'voluntary' agreement

between an importing country (such as the US) and an exporting

country (such as Japan, in the case of motor vehicles) that the

exporting country will restrict the volume of exports of the goods in

question (in this instance, motor vehicles). Although such agreements

are supposedly voluntary (a "gentlemen's agreement"), they are

generally agreed to under threat of stiffer quotas and/or tariffs being

applied to the exporting country by the importing country. VERs may

sometimes be referred to as orderly marketing agreements (OMA).

o Differing product classification - Since the classification of a product

according to the various customs' product categories will almost

certainly impact on the duty that is applied to that imported good,

exporters may occasionally be frustrated by customs authorities (who

always have the final say) who classify their goods into a category

that they exporter does not agree with. This classification may render

the goods completely uncompetitive in the market