Page 266 - International Marketing

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268 International Marketing BRILLIANT'S

(d) Public distribution system: Public Provisions of GATT
distribution system will remain outside
the purview of GATT. This will help the 1. Trade in Agriculture
poor population in the rural as well as 2. Trade in Services
urban areas of under-developed 3. Trade in Textiles
countries to get their supplies as usual. 4. Trade Related
This is the system of distributing Intellectual Property
foodgrains at concessional rates by Rights (TRIPs)
government to those who are living 5. Trade Related
below poverty line. Investments
2. Trade in Services: GATT also provides Measures (TRIMs)
for free trade in services relating to banking,
insurance, communication, etc. MNCs are allowed freedom to operate
across all member countries and to be treated as domestic companies.
The freedom of trade in services benefits all the nations of the world.
3. Trade in Textiles: Under GATT, various import restrictions by vari-
ous countries on textiles will be abolished over a time span of 10 years,
i.e., with effect from 1st January, 2005. It has benefitted various exporting
countries, such as, India, Korea and China.
4. Trade Related Intellectual Property Rights (TRIPs): TRIP is
Related to protecting the intellectual property rights through patents, copy-
rights, trade marks, etc. According to GATT, the person who has invented
some new product can get his patent registered for a specified period of
time. Any other person who uses such patents has to pay royalty to the
patent holder.
5. Trade Related Investments Measures (TRIMs): TRIMs provide
abolition of all restrictions on foreign investment. It encourages free flow of
foreign investment. Consequently, it raises the level of global output and
employment and thereby reducing the problems of balance of payment of
the member countries.
6. Other Provisions: Various other provisions are related to subsi-
dies, antidumping, dispute settlement, reduction in tariff, removing non-
tariff carriers, etc. 
EXPORT FINANCE

Q.43. Write a short note on Export Finance. [MBA (FT) 2006]
OR
What do you mean by Export Finance? Explain its types also.
Credit and finance is the life and blood of any business whether do-
mestic or international. It is more important in the case of export transac-