...Assignment 2 Lukoil: Trade Strategy at a Privatized Exporter Word Count: 1946 Introduction Over the past decade, Russia has witnessed year after year of significant growth in terms of its GDP. The vast majority of this growth can be attributed to Russia’s most valuable natural resource, Crude Oil. Overall, the oil industry accounts for a staggering 25% of Russia’s total GDP, as well as totaling 40% of all exports leaving its borders (Poussenkova, 2010). Lukoil, Russia’s largest oil company came about in 1991, when the then state owned oil monopoly was dismantled (Firlej, 2009). Today Lukoil accounts for roughly 19% of all oil production in Russia with profits reaching $108 Billion in 2008. Despite tremendous success in recent times for Russian oil exports, the state now looks to offset the risks associated with both heavily fluctuating oil prices as well as its enormous dependence upon oil exports for the well being of the nation. Because of this, companies such as Lukoil are now engaging in foreign investment to reduce the effects of fluctuating oil prices, political uncertainty as well as other risks related with their position (Firlej, 2009). This paper will discuss various aspects of Russia’s position as an oil exporter as well as various risks that may be faced in the near future. Theories of Trade When talking about Russia’s global position as an oil exporter, it is best to use various trade theories to help explain the situation. Firstly, it must...
Words: 2074 - Pages: 9
...TEN PROFITABLE TIPS FOR EXPORTERS AND IMPORTERS Copyright 2012 by Joseph Zodl P.O. Box 22292, Phoenix, Arizona 85028 1. Trade in products you know and understand. Whether it's sporting goods or diesel locomotives, domestic sales or international sales, you have to know the product to be able to succeed. 2. Learn the basics first. You can't learn everything. Be an expert in your product. Learn the basics of international marketing, payment, and customs. Many community colleges have inexpensive courses. Contact the U.S. Department of Commerce, your state Department of Commerce, and the Small Business Administration. They have seminars and conferences, and can tell you about other resources. 3. Ask for assistance from the experts. Before you begin, talk with a bank's international department (at most large banks), and with a Freight Forwarder (exports) or Customs Broker (imports). These specialists are listed in the Yellow Pages. 4. Keep in touch with all of your sales leads. Put together a mailing list and make sure they hear from you three or four times a year. Don't let them go to someone else. 5. For success in exporting: A) Get the order. B) Make sure you're going to get paid for the order. C) Ship the order. 6. For success in importing: A) Figure ALL costs, including transportation, insurance, Customs duties, then double-and triple-check them. B) Pre-sell (have advance...
Words: 466 - Pages: 2
...PROJECT REPORT ON INVESTIGATION OF NOIDA SEZ EXPORTERS' RESPONSES TO ANTI-DUMPING & ALLIED DUTIES AS TARIFF BARRIERS FOR INTERNATIONAL TRADE UNDER THE GUIDANCE OF PROFESSOR RITU SRIVASTAVA IN THE PARTIAL FULLFILLMENT OF POST GRADUATION DIPLOMA IN MANAGEMENT NIILM-CMS (2010-2012) INDEX SNO. TOPIC PAGE NO. 1. INTRODUCTION 3-6 2. RELEVANCE OF THE STUDY 7 3. RESEARCH OBJECTIVE 8 4. RESEARCH TOOLS AND METHODS 9-10 5. DATA ANALYSIS AND FINDINGS 11-15 6. CONCLUSION 16 7. RECOMMENDATIONS 17 8. RESEARCH LIMITATIONS 18 9. FUTURE AREA OF WORK 19 10. BIBLIOGRAPHY 20 11. ANNEXURE 21 INTRODUCTION: Our project is all about Anti – Dumping, other allied duties and the way these duties affect our Exporters. It also covers the protection policies like “Drawbacks” which our Exporters receive from the Indian Government. Before going into details about our project we would like to define some common terms which are related to our project like “Dumping and Anti – Dumping” etc. Dumping: The term Dumping is said to occur when the goods are exported from a country to another country at a price which is lower than its cost of production. It is therefore an unfair practice which can have a distortive effect on International trade...
Words: 2681 - Pages: 11
...a traditional system under this rule. In this case the sellers are treated as exporter. There are various persons, government or non government organizations are involved with export business at present. These persons or organizations are divided into two criteria based on their nature and functions. Such as direct and indirect export. The direct exporters send their manufacturing products abroad themselves. Some companies run their export management system by setting dealers in abroad. In export business the intermediaries are treated as indirect exporters. These classes of exporters do not manufacture any product but export. Most of them complete the direct export exporting by buying products from home market after receiving orders. They are known as export merchant. Again many exporters work as a percent agent. Many intermediaries export product by making contract with manufacturers. They seek for foreign buyer on behalf of the exporters and take orders. They are known as manufacturers export agent. These kinds of exporters also take commission from buyers if they get chance. It is not the matter the exporters are treated in which name they have to do business of course under the international rule and regulations. In every countries this business is controlled and regulated by the government. Without permission of government it is impossible to export any product. For this reason the exporters have to take export license from the government. Beside this a product list is...
Words: 10307 - Pages: 42
...FBX Plug-in for DAZ Studio Thank you for purchasing the FBX Exporter Plugin for DAZ Studio. This guide will explain how to “install” and activate your copy of the FBX Exporter in DAZ Studio 4. How to “install” the FBX Exporter for DAZ Studio 4 There is no longer a separate installer for the FBX Exporter for DAZ Studio 4 that needs to be downloaded and installed separately. The FBX Exporter is now installed automatically with the installation of DAZ Studio 4 but it is not activated until you enter in a valid serial number for it unless you are installing DAZ Studio 4 Pro. How to Activate the FBX Exporter You can activate the FBX Exporter in one of two ways. If you have purchased DAZ Studio 4 Pro the FBX Exporter will automatically be activated when you register your copy of DAZ Studio 4 Pro using your DAZ Studio 4 Pro serial code. If you own the FBX Exporter but you have not purchased DAZ Studio 4 Pro then you will need to activate the FBX Exporter by going to the "Help" menu and selecting "About Installed Plugins". Next, find the entry for the FBX Exporter and click on the "Register" button and paste or type in your FBX Exporter serial code* into the Serial Number field. Finally, click on the "Accept" button to finish the registration process. You may need to close DAZ Studio and reopen it before you can start using the FBX Exporter. *The FBX Exporter serial code will only be listed in your "Available Serial Codes" section of your www.daz3d.com account if you purchased the...
Words: 397 - Pages: 2
...International Business Management Section A: Part One: 1. What is the series consideration for strategy implementation? 2. The major activity in global marketing is: d. All of the above 3. 3. The third „P‟ in the international marketing mix is: d. Place 4. The European Economic Community was established in____________ d. 1957 5. Environment Protection Act on______________ a. 1986 6. People‟s attitude toward time depend on: 7. Culture necessitates adaption of : 8. The legal term for brand is: All of the above 9. FDI flows are often a reflection of rivalry among firms in____________ 10. ISO certification is: d. Both (a) & (b) Part Two: 1. What do understand by „Inward-oriented Policies An inward- oriented policy, usually , means over protection. What is less obvious is that sheltering domestic industries puts exports at a great disadvantage because it raises the cost of the foreign inputs used in their production. Moreover, an increase in the relative costs of domestic inputs may also occur through inflation or because of appreciation of the exchange rate as import restrictions are introduced. In practice, the distinction between inward-looking and outward looking approaches gets blurred. Most of the less developed countries have employed both strategies with different degrees of emphasis at one time or another 2. What is „Factor Endowments Theory‟? The factor endowments is a “modern” extension of the classical approach and attempts to explain the...
Words: 4256 - Pages: 18
...INSURANCE: AN INTRODUCTION Insurance may be described as a social device to reduce or eliminate risks of loss to life and properly. It is a provision which a prudent man makes against inevitable contingencies, loss or misfortune. Once Frank H. Knight said "Risk is uncertainty and uncertainty is one of the fundamental facts of life." Insurance is the modern method by which men make the uncertain certain and the unequal; equal. It is the means by which success is almost guaranteed. Through its operation- the strong contribute to the support of the weak and weak secure, not by favor sent by right duly purchased and paid for, the support of the strong (Calvin Coolidge.) Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. As in private life, in business also there are dangers and risks of different kinds. The aim of all types of insurance is to make provision against such dangers. The risks which can be insured against include fire, the perils of sea (marine insurance), death (life insurance) and, accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus, collective bearing of risks is insurance. Definition Insurance in its basic form is defined as “ A contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money...
Words: 5286 - Pages: 22
...with the common objective of job creation, income growth and greater economic prosperity. Bangladesh, being a small economy, must look to export markets for rapid industrial development, and the country is well known for its fast growth in export trade over the last two decades. About 1.3 million (since 1972) exporters comprising small, medium and large-scale entrepreneurs have been contributing directly and indirectly to the growth further. And one of the key incentives provided by the government to exporters is duty drawback. To enable exports to flourish, the government has put in motion private sector-friendly policies and a number of supportive inducements. Exporters, among others, are allowed bonded warehouse facilities, cash incentive, and duty exemption and duty drawback facilities to make them profitable and remain competitive in export markets. Duty drawback refers to refund of duties and indirect taxes paid for inputs and utilities for exports. Import duties, VAT, supplementary duties and other duties paid on imported raw materials can be drawn back by firms under the duty drawback facility. The drawback facility is provided to exporters and deemed exporters of goods and services who import inputs or raw materials for the purpose of exportation only, after local value addition. But, only those who are not already enjoying bonded warehouse and cash incentive facilities are given this incentive. Firms may also get drawback on the fuel consumed at the stage of production...
Words: 1820 - Pages: 8
...terms) - CFR – Cost and Freight - the exporter must deliver the goods at the port of destination selected by the importer. Transport expenses are thus the responsibility of the exporter. The importer bears the expenses of insurance and unloading of the goods. Utilization of this term obliges the exporter to offload the goods for export, and to use only sea and inland waterway transportation. - CIF – Cost, Insurance and Freight – modality equivalent to CFR, except that the insurance costs are born by the exporter. The exporter must deliver the goods aboard ship, at the port of embarkation, with freight and insurance paid. The responsibility of the exporter ceases when the product is offloaded from the ship at the port of destination. This modality may only be used for sea and inland waterway transportation. - CIP – Carriage and Insurance Paid to... – adopts a principle similar to CPT. The exporter, aside from bearing expenses for shipment of the goods and freight to the destination, must also bear expenses of insurance for transport of the goods to the destination indicated. CIP may be used for any mode of transportation, including multimodal. - CPT – Carriage Paid to... – similarly to CFR, this condition stipulates that the exporter must pay expenses relating to the shipment of the goods and international freight to the designated destination. Thus, the risk of loss or damage to the goods, and any increase in costs, are transferred to the exporter by the importer, when the goods are...
Words: 772 - Pages: 4
...Import Export Pakistan Legislation Terms and Definition Posted on June 19, 2008 by Imran [pic][pic][pic] Bill of Lading for Import Export Pakistan A bill of lading (also referred to as a BOL or B/L) is a document issued by a carrier , e.g. a ship’s master or by a company’s shipping department, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. Care (Customers Administrative) for Import Export Pakistan Care stands for Customs Administrative Reforms and it is a project of the Central Board of Revenue overseeing reforms in Pakistan Customs. The project was initiated in February 2002. Since its inception CARE has carried out research and development work to enhance the efficiency of the department. Cost and Freight (CFR) for Import Export Pakistan Cost and Freight (CFR) means that the seller pays for transportation to the Port of Loading (POL), loading and freight . The buyer pays for the insurance and transportation of the goods from the Port of Discharge (POD) to his factory . The passing of risk occurs when the goods pass the ship ’s rail at the port of shipment which means that this term cannot be used for airfreight or land transport and also is inappropriate for most containerised sea shipments. Cost, Insurance and Freight (CIF) for Import Export Pakistan Cost, Insurance and Freight (CIF) is a common term in a sales contract that may be encountered in international...
Words: 7147 - Pages: 29
...Duty Exemption and Drawback Background[1] The Duty Exemption and Drawback facility enables exporters and deemed exporters to claim, within 6 months of exports, the duties and taxes paid on raw materials used in the export process. Apart from imported raw materials, businesses are entitled to duty exemption and drawback on taxes paid on utilities and, in some case, on the fuel consumed in the production process. Eligible exporters can claim their drawback by filing their claim with the Duty Exemption and Drawback Office (DEDO), which is an agency under the authority of the National Board of Revenue. The Customs Act, 1969 and the VAT Act 1991 governs the process. While Chapter VI of the Customs Act 1969 provides many of the guidelines, since the promulgation of the VAT Act 1991, drawback can also be claimed on inputs under Section 13, Rules 28, 29, 30, 31, 32, 32(a), 33 and 34. Additional SROs that guide the process include SRO 154 (June 9, 2005) and SRO 157 (June 9, 2005). Eligible exporters can enjoy this facility under two broad categories – a duty exemption or a duty drawback. Under the duty drawback system, exporters get refunds of the duties and indirect taxes they have paid on imported inputs. Duty may be refunded in three ways: a) actual drawback, b) national drawback, and c) flat rate drawback. Due to fewer complications and ease of operation, the flat rate system remains the most preferred method of refund. There are also two other ways of making such...
Words: 1774 - Pages: 8
...marketplace and win sales against foreign competitors, exporters must offer their customers attractive sales terms supported by appropriate payment methods. Because getting paid in full and on time is the ultimate goal for each export sale, an appropriate payment method must be chosen carefully to minimize the payment risk while also accommodating the needs of the buyer. As shown in figure 1.1, there are four primary methods of payment for international transactions. During or before contract negotiations, you should consider which method in the figure is mutually desirable for both you and your customer. Figure 1.1. Payment Risk Diagram Key Points • To succeed in today’s global marketplace and win sales against International trade presents a spectrum of risk, which causes uncertainty over the timing of payments between the exporter (seller) and importer (foreign buyer). • For exporters, any sale is a gift until payment is received. • T herefore, exporters want to receive payment as soon as possible, preferably as soon as an order is placed or before the goods are sent to the importer. • For importers, any payment is a donation until the goods are received. • Therefore, importers want to receive the goods as soon as possible but to delay payment as long as possible, preferably until after the goods are resold to generate enough income to pay the exporter. 4 Cash-in-Advance With cash-in-advance payment terms, the exporter can avoid credit risk because payment is received before...
Words: 752 - Pages: 4
...FORFAITING A USER'S GUIDE WHAT IT IS, WHO USES IT AND WHY? By: John F Moran, Jr. Abstract Italian and West German exporters have long been familiar with Forfaiting and still provide the bulk of the market. UK, Scandinavian, Spanish and French exporters are latching onto the possibilities of the technique with enthusiasm. The American and Canadians, meanwhile, have been slow to catch on (some Forfaiters think it is because they are suspicious of its simplicity coupled with a lack of complex documentation). For people who are not using the technique, below is a concise introduction to Forfaiting using questions those new to the technique would typically ask. What is Forfaiting? Forfaiting is the purchase of a series of credit instruments such as drafts drawn under time letters of credit, bills of exchange, promissory notes, or other freely negotiable instruments on a "nonrecourse" basis (non-recourse means that there is no comeback on the exporter if the importer does not pay). The Forfaiter deducts interest (in the form of a discount), at an agreed rate for the full credit period covered by the notes. The debt instruments are drawn by the exporter (seller), accepted by the importer (buyer), and will bear an aval, or unconditional guarantee. The guarantee will normally be issued by the importer's bank, but some strong corporates can be accepted without a bank guarantee. In exchange for the payment, the Forfaiter then takes over responsibility for claiming the debt from the importer...
Words: 2118 - Pages: 9
...availability of trade payment and finance from the international banking community. Although banks also finance domestic trade, their role in financing international trade and payment system is more critical due to the additional complications involved. First, the exporter might question the importer’s ability to make payment. Second, even if the importer is creditworthy, the government might impose exchange controls that prevent payment to the exporter. Third, the importer might not trust the exporter to ship the goods ordered. Fourth, even if the exporter does ship the goods, trade barriers or time lags in international transportation might delay arrival time. Financial managers must recognize methods that they can use to make payment and finance international trade so that they can conduct exporting or importing in a manner that maximizes the value of a business. In any international trade transaction, credit is provided by either the exporter, the importer, one or more financing institutions, or any combination of these. The supplier may have sufficient cash flow to finance the entire trade cycle, beginning with the production of the product until payment is eventually made by the buyer. In some cases, the exporter may...
Words: 3393 - Pages: 14
...raise the percentage to lessen the financial crisis and issues of our economy here in the Philippines. However, this could also mean that some other Filipinos, who are contributing a lot in our economic growth, will be at an edge of helping themselves to this “firmer peso”. Food producers and exporters alone, from the ₱37.50-to-the-dollar exchange rate could cost them around $30 million to $40 million this year, which are exporter loss around $100 million. This is the case that food exporters and local food producers worrying about the stronger peso against the dollar. They will also lose their competitiveness against the other Asian country that may cause severe unemployment, closures of factories, flooding of cheaper imported goods in the local market and other social problems and unrest. Besides, the appreciation of the peso may harm also the overseas Filipino workers (OFWs) and their families, business-process outsourcing (BPOs) firms and foreign investment in general. These segments are the prime carrier of growth in our economy which contributes for as much as 70 percent of gross domestic product (GDP). Strong peso plus the high sugar price, makes local food producers and exporters come to haste to restore the D-Sugar allocation of 2 percent. This will be considered as hedge for the on-going raise of the peso coupled with high sugar price, which cost around ₱40 to ₱44 per kilo without...
Words: 1773 - Pages: 8
