Foreign trade zone

Trade enlarges the potential market for the goods of a particular economy. It usually refers to export trade and import trade. Basically there is no difference between home trade and foreign trade. Home trade arises out of regional specialization. For the same reason foreign trade arises. Political boundaries do not or cannot bring about any great change in the nature of trade. When a country trades with other countries it is called foreign trade.

Foreign Trade, the exchange of goods and services between nations. Goods can be defined as finished products, as intermediate goods used in producing other goods, or as agricultural products and foodstuffs. International trade enables a nation to specialize in those goods it can produce most cheaply and efficiently. Trade also enables a country to consume more than it would be able to produce if it depended only on its own resources. Finally, trade enlarges the potential market for the goods of a particular economy. Trade has always been the major force behind the economic relations among nations.

When Trade is affected within the political boundary of a country, is known as home trade. On the other hand trade with other countries outside the political boundary of a country is called foreign trade.

Foreign trade has now been controlled for various reasons. Even after the First World War, Laissez Faire or free trade policy was followed by almost all the countries.

Exporter means a person who exports or intends to export and holds an Importer-Exporter Code number unless otherwise specifically exempted.

Export Obligation means the obligation to export the product or products covered by the license or permission in terms of quantity, value or both, as may be prescribed or specified by the licensing or competent authority. Exporters are generally classified in to three classes-Manufacturing Exporter, Merchant Exporter and Government Export agency.

Importer means a person who imports or intends to import and holds an Importer-Exporter Code number unless otherwise specifically exempted. There are three classes of importers namely- Manufacturing Importer, Merchant Importer and Government Import agencies.