Category: Economics

Trade Commission


Trade commissions (or trade com) and trade promotion boards keep a tab on the trading activities across the world. A trade commission enforces protection and antitrust laws to guard consumers and sustain fair competition in the market. On the other hand, a trade promotion board builds demand at the middleman level.

The Importance of Trade Commissions and Trade Promotion Boards

The significant of trade commissions and trade promotion boards pertain to distinct areas of trade.

Trade Commissions

International Free Trade Zone


Free Trade Zone, popularly known as FTZ, is an area where goods may be traded without any barriers imposed by customs authorities like quotas and tariffs. Free Trade Zone (FTZ) is a special designated area within a country where normal trade barriers like quotas, tariffs are removed and the bureaucratic necessities are narrowed in order to attract new business and foreign investments.

Trade Agreement


Trade agreements between two or more countries involve reaching an understanding on tax, tariff and restrictions applicable on the export and import of goods and services. These treaties, which also include investment guarantees, typically aim to establish a ‘free trade area,’ where goods and services can be exchanged across territorial boundaries without imposing tariffs. The countries (regions) forming a free trade area impose a common tariff on goods and services sold to non-member countries.

Global Trade


Global trade is the exchange of raw materials, goods and services across the geographical borders of countries across the globe. Foreign trade got its first impetus from the industrial revolution in the late eighteenth and early nineteenth century. Rapid development in transportation facilities resulted in a surge in international trade in the twentieth century. Today, international trade has taken the form of outsourcing and multinational companies (companies that have a presence in several countries).

 

Trade In India


Trade and commerce have been the backbone of the Indian economy right from ancient times. Textiles and spices were the first products to be exported by India. The Indian trade scenario evolved gradually after the country’s independence in 1947. From the 1950s to the late 1980s, the country followed socialist policies, resulting in protectionism and heavy regulations on foreign companies conducting trade with India. India’s international trade situation improved when Prime Minister Rajiv Gandhi reformed the trade policies in the late 1980s.