DOMESTIC BUSINESS

 A business is said to be domestic, when its economic transactions are

conducted within the geographical boundaries of the country.
 It deals with Single currency.
INTERNATIONAL BUSINESS-
 International business is one which is engaged in economic transaction with
several countries in the world.
 It deals with Multiple currencies.
DOMESTIC MARKETING-

 Domestic marketing refers to marketing within the geographical

boundaries of the nation.
 Domestic marketing covers a limited area within a single country.
INTERNATIONAL MARKETING
 International marketing means the activities of production, promotion,
distribution, advertisement and selling are extend over the geographical
limits of the country.
  international marketing, an extensive area is covered, spanning across
several countries.

Tariff Barriers-
Tariff is a custom duty or a tax on products that moves across borders. The most
important of tariff barriers is the customs duty imposed by importing country.

Non-Tariff Barriers-
A non-tariff barrier is any barrier other than a tariff that arises an obstacle to free flow of
goods in overseas markets. Non-tariff barriers, do not affect the price of the imported
goods but only the quantity of imports.

WTO-
The World Trade Organization (WTO) is the only global international organization
dealing with the rules of trade between nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading nations and ratified in their
parliaments.
Headquarters: Geneva, Switzerland
Membership: 164 member states
Founded: 1 January 1995
Purpose: Reduction of tariffs and other barriers to trade
Role of WTO in international business
 WTO facilitates implementation, administration and smooth operations of trade
agreements between the countries.
 It provides a forum for the trade negotiations between its member countries.
 Settlements of disputes between the member countries through the established
rules and regulations.
 It cooperates with the IMF(International Monitory Fund) and World Bank in terms
of making cohesiveness in making global economic policies.

GATT-
 The General Agreement on Tariffs and Trade is a legal agreement between many
countries, whose overall purpose was to promote international trade by reducing
or eliminating trade barriers such as tariffs or quotas.
 Location: Geneva, Geneva Canton, Switzerland
 Signed: 30 October 1947

 The General Agreement on Tariffs and Trade (GATT) was a free trade
agreement between 23 countries. As the first worldwide multilateral free trade
agreement.

What Is the World Bank?

 The World Bank is an international financial institution that provides loans and
grants to the governments of poorer countries for the purpose of pursuing capital
projects. It comprises two institutions: the International Bank for Reconstruction
and Development, and the International Development Association.
 Headquarters: Washington, D.C., United States
 Membership: 189 countries (IBRD); 173 countries (IDA)
 Founded: July 1944

World Bank role during pandemic-

The World Bank supports countries in their efforts to prevent pandemics by
strengthening veterinary and human health systems, as well as the bridges
between them. Under IDA 19, the World Bank sharpened its focus on building
crisis resilience including pandemic preparedness, committing to help at least
25 countries implement pandemic preparedness plans. Under IDA 18,
the World Bank committed to help 25 countries develop preparedness plans. 
Exceeding this target, 46 countries have developed National Actional Plans for
Preparedness (NAPHS) or a similar pandemic preparedness plan.
Functions of the World Bank-
 It helps the war-devasted countries by granting them loans for reconstruction.
 Also, it helps the underdeveloped countries by granting development loans.
 So, it also provides loans to various governments for irrigation, agriculture, water
supply, health, education, etc.
 It promotes foreign investments to other organizations by guaranteeing the loans.
 Also, the world bank provides economic, monetary, and technical advice to the
member countries for any of their projects.

Trade barriers-
A government imposed restriction on the free international exchange of goods or
services. Economists generally agree that trade barriers are detrimental and decrease
overall economic efficiency; this can be explained by the theory of comparative
advantage.

Trading blocs-
A trade bloc is a type of intergovernmental agreement, often part of a regional
intergovernmental organization, where barriers to trade are reduced or eliminated
among the participating states. Trade blocs can be stand-alone agreements between
several states or part of a regional organization. 

Functions of Trading blocs -1. Economic integration, 2. Free transfer of resources,

3. Increase in Trade, 4. Employment opportunities, 5. Benefit to the consumers, 6.
Cooperative spirit.
SAARC
The South Asian Association for Regional Cooperation (SAARC) is the regional
intergovernmental organization and geopolitical union of states in South Asia. Its member states
are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

Place founded: Dhaka
Geographic scope: Southern Asia
Date founded: 8 December 1985

The Objectives of the SAARC

 To promote the welfare of the people of South Asia and to improve their quality of life.
 To accelerate economic growth, social progress and cultural development in the
region and to provide all individuals the opportunity to live in dignity and to realize their full
potentials.
 To promote and strengthen collective self-reliance among the countries of South
Asia.
 To contribute to mutual trust, understanding and appreciation of one another’s
problems.
 INTERNATIONAL PRICING

Companies that sell to multinational clients or sell their products globally will
have to decide how to price their product in each market. Purchase power, needs,
and preferences differ between countries and so does willingness to pay for a
given product or service; to maximize profit, pricing research must be conducted
for each market.
International promotion 
International promotion is promoting the business internationally or world
wide or it is the marketing carried out by companies in overseas or across national
borderlines. Key function - developing and spreading credible communication
about an offer (product / service).
The International Product Life Cycle
The International Product Life Cycle Theory was authored by Raymond Vernon
in the 1960s to explain the cycle that products go through when exposed to an
international market. The cycle describes how a product matures and declines as
a result of internationalization. There are three stages contained within the
theory.
What is Promotion Mix?
The Promotion Mix refers to the blend of several promotional tools used by the business to
create, maintain and increase the demand for goods and services. ... The Promotion Mix is
the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and
Direct Marketing.
Step Process Perfects New Product Development
 Step 1: Generating. ...
 Step 2: Screening The Idea. ...
 Step 3: Testing The Concept. ...
 Step 4: Business Analytics. ...
 Step 5: Beta / Marketability Tests. ...
 Step 6: Technicalities + Product Development. ...
 Step 7: Commercialize. ...
 Step 8: Post Launch Review and Perfect Pricing.
INTERNATIONAL MARKETING RESEARCH •
International marketing research is the systematic design, collection, recording, analysis,
interpretation, and reporting of information pertinent to a particular marketing decision
facing a company operating internationally.
The international marketing research process involved several steps:-
• Conduct a preliminary research
• Develop a research brief
• Identify the right marketing agency
• Determine the data collection mode
• Conduct data analysis
• Complete a post project review

ECGC
(Export Credit Guarantee Corporation of India)
The ECGC Limited is a company wholly owned by the Government of India
based in Mumbai, Maharashtra. It provides export credit insurance support to
Indian exporters and is controlled by the Ministry of Commerce. Government of
India had initially set up Export Risks Insurance Corporation in July 1957.

The role of the ECGC

 Its primary role is to provide a variety of risk insurance products that cover losses and bad
debts on exports.
 The ECGC also offers export credit insurance cover to banks and financial institutions so
that they can provide trade-risk coverage to exporters.
 The Corporation also offers overseas investment insurance to Indian companies that are
entering into international joint ventures, in the form of equity or loans

EXIM Bank (Export-Import Bank)

Export-Import Bank of India is a specialized financial institution, wholly owned by
Government of India, set up in 1982, for financing, facilitating and promoting
foreign trade of India.
EXIM Bank (Export-Import Bank) Role

1. Financing of export and import of goods and services both of India and of
outside India.

2. Providing finance for joint ventures in foreign countries.

3. Undertaking merchant banking functions of companies engaged in foreign

trade.

4. Providing technical and administrative assistance to the parties engaged in

export and import business.