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    INTERNATIONAL TRADE Case Study

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    Charu Anand Mittal
    This document contains two case studies related to international business. The first case study discusses how India faced a balance of payments crisis in 1991 which led it to approach the IMF for funds. The IMF agreed to lend money on the condition that India undergo economic reforms to liberalize and globalize its economy. Since then, India has opened up to foreign investment and trade. The second case study discusses how tourism, transportation, banking, insurance and other services have emerged as major components of international trade. It provides examples of how countries earn foreign exchange through the export of various services.

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    INTERNATIONAL TRADE Case Study

    Uploaded by

    Charu Anand Mittal
    1K views2 pages
    This document contains two case studies related to international business. The first case study discusses how India faced a balance of payments crisis in 1991 which led it to approach the IMF for funds. The IMF agreed to lend money on the condition that India undergo economic reforms to liberalize and globalize its economy. Since then, India has opened up to foreign investment and trade. The second case study discusses how tourism, transportation, banking, insurance and other services have emerged as major components of international trade. It provides examples of how countries earn foreign exchange through the export of various services.

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    INTERNATIONAL TRADE case study

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    This document contains two case studies related to international business. The first case study discusses how India faced a balance of payments crisis in 1991 which led it to approach the IMF for funds. The IMF agreed to lend money on the condition that India undergo economic reforms to liberalize and globalize its economy. Since then, India has opened up to foreign investment and trade. The second case study discusses how tourism, transportation, banking, insurance and other services have emerged as major components of international trade. It provides examples of how countries earn foreign exchange through the export of various services.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views2 pages

    INTERNATIONAL TRADE Case Study

    Uploaded by

    Charu Anand Mittal
    This document contains two case studies related to international business. The first case study discusses how India faced a balance of payments crisis in 1991 which led it to approach the IMF for funds. The IMF agreed to lend money on the condition that India undergo economic reforms to liberalize and globalize its economy. Since then, India has opened up to foreign investment and trade. The second case study discusses how tourism, transportation, banking, insurance and other services have emerged as major components of international trade. It provides examples of how countries earn foreign exchange through the export of various services.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    GYANSHREE SCHOOL

    ACADEMIC SESSION: 2019-20


    BUSNINESS STUDIES
    INTERNATIONAL BUSINESS (CASE STUDIES)
    GRADE –XI
    __________________________________________________________________________________________________

    CASE STUDY 1
    International business has entered into a new era of reforms. India too did not remain cut-off from these
    developments. India was under a severe debt trap and was facing crippling Balance of Payment crisis. In 1991,
    it approached the International Monetary Fund (IMF) for raising funds to tide over its Balance of Payments
    deficit. IMF agreed to lend money to India subject to the condition that India would undergo structural changes
    to be able to ensure repayment of borrowed funds. India had no alternative but to agree to the proposal. It was
    the very conditions proposed by IMF which more or less forced India to liberalize its economic policies. Since
    then a fairly large amount of liberalization at the economic front has taken place. Though the process or reforms
    has somewhat slowed down, India is very much on the path to globalization and integrating with the world
    economy. While on one hand, many Multinational; Corporations have ventured into Indian market for selling
    their products and services, many Indian companies too have stepped out of the country to market their products
    and services to consumers in foreign countries.
    On the basis of the above case, answer the following questions:
    1. What is the meaning of globalization and liberalization?
    2. IMF forced India to make structural changes so that international trade is encouraged. Do you think that
    encouraging international trade is good for the country? Give reasons to support the answer.
    CASE STUDY 2
    Tourism and transportation have emerged as major components of international trade in services. Most of the
    airlines, shipping companies, travel agencies and hotels get their major share of revenues from their overseas
    customers and operations abroad. Several countries have come to heavily depend on services as an important
    source of foreign exchange earnings and employment. India, for example, earns a sizable amount of foreign
    exchange from export of services related to travel and tourism.
    When one country provides services to other country and in the process earns foreign exchange, this is also
    treated as a form of international business activity. Fee received for services like banking, insurance, rentals,
    engineering and management services form part of country’s foreign exchange earnings. The other examples of
    such services include overseas management contracts where arrangements are made by one company of a
    country which provides personnel to perform general or specialized management functions for another company
    in a foreign country in lieu of the other country.
    On the basis of the above case, answer the following questions:
    1. Is international trade related to to only goods?
    2. Enumerate the different services which are traded internationally.

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