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
Learners 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 agriindustry. 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 INDIAs 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 by him.
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 WebbPomerene 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
UK
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
worlds 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
Indian film and music have become quite popular in recent years. Films from
Bollywood are widely watched in many South and Central Asian countries, as
well as in the United Kingdom, France, Germany, the Netherlands and
Scandinavia. Indian film and music have gained popularity in the United States,
too.

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