CBSE Class 11 Business Studies HOTs International Business

Question. In which term do two companies jointly agree to share each other’s trade secrets and technology?
Answer : Cross-licensing is the agreement where the two companies jointly agree to share each other’s trade secrets and technology.

Question. In terms of import transaction which two documents are required?
Answer : The two documents required for import transaction are
• Commercial Invoice
• Airway/landing bill

Question. State IEC number.
Answer : IEC number is defined as the Import Export Code number which is used to acquire an export license. This code is taken from the Directorate General Foreign Trade or Regional Import Export Licensing Authority.

Question. Which document contains a guarantee of a bank to honor a draft drawn on it by an exporter’s bank?
Answer : An importer’s bank issues ‘A letter of credit’ a guarantee certificate that will acknowledge payment up to a certain amount of export bills to the bank of the exporter.

Question. Define Bill of Landing.
Answer : Bill of Landing refers to the list of shipped cargo in the form of receipt given by the head of the shipment to the individual heading the shipment.

Question. Define shipping advice.
Answer : This commercial document is published by the exporter, who is also the beneficiary of the letter of credit. He gives the shipment details to the importer.

Question. Point out the advantages of WTO?
Answer : The advantages of WTO are.
• Helps to improve international harmony and assist international trade
• Disputes between countries are resolved with joint consultation
• To make rules and regulation that smoothens the process of international trade
• Increase standard of living by increasing income and free trade
• Free trade gives an extensive scope of generating quality products
• Strengthen economic trade with free trade
• The method motivates and encourages good governance
• It helps the developing country to promote its growth