Description
Your company is a manufacturer of Incense sticks, also called Agarbatti, from India and are keen on expanding your business globally. Discuss the challenges of marketing your product globally. (10 Marks)
The government of India initiative is to encourage local industry and consume as locally as possible, and to use the long-term effects of increased demand to develop domestic industry and gradually become self-sufficient. “Vocal for Local” is a term that is having resonance with countries today to promote Local consumption. In your view is it positive for nations to produce locally and avoid globalization? (10 Marks)
Read the following case study carefully and then answer the questions that follow: Chinese e-commerce platforms ship these goods ordered by Indians by claiming them to be “gifts” as those under Rs 5,000 are not subjected to customs duty. Authorities have seized many such shipments trying to evade customs duty. Chinese retailers like Club Factory, Ali Express and Shein will be affected the most by this move. To reduce these illegal imports, the tax department is planning to charge a mix of integrated goods and services tax (IGST) and customs duty on products ordered from Chinese e-commerce companies and will impose it on buyers at the payment stage, sources said to the paper. “The government is looking to bring in payment gateways on board on the scheme and when the consumer pays the money, IGST and customs duty will be included in the price,” said one source to the paper. Since the government started its crackdown on the imports from Chinese e-tailers, the numbers have gone down. According to a Bloomberg report taken from a customs document, imports of shipment worth below Rs 1,00,000 has fallen sharply by 55 percent in Mumbai.
- a) What in your opinion should the Government of India take measures to stop the malpractice by Chinese firms? (5marks)
- b) Explain antidumping duty and how can the Government apply these duties without violating the WTO rules, of Free Trade. (5 Marks)
