In this article, we will see How Foreign trade Policies affects Gold Prices?
None of the country of this world is capable enough to cater its nations’s needs on its own. This is the reason why every country indulges into foreign trade. In fact, whether a country is opened or closed depends on its openness to foreign trade and not in absolute manner.
Foreign trade policies affects the domestic trade and trends of the market. India is a part of the globalization. In result, any effect, positive or negative, on the global trade, affects the Indian market. The global economic downturn and the recent Economic crisis are two examples to understand this fact.
Export-Import Policy (EXIM Policy) or Foreign Trade Policy is a set of guidelines and instructions established by Directorate General of Foreign Trade (DGFT) in matters related to the import and exports of goods in India.
India’s Export Import Policy, in general, aims at developing export potential, improving export performance, encouraging foreign trade and creating favorable balance of payments position. Seems Confusing?
Let’s understand it in a simpler form. In order to boost export, government may offer different types of benefits to exporters of goods. On its flip side, government may multiply import duty on goods, in order to decrease imports of certain goods.
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