CHAPTER I

INTRODUCTION

This project is all about to know the struggles faced by the

exporters in finding capable importers. This project puts focus on to
know how the exporters choose the importers. It also finds the
methodologies used by the exporters to analyze the capacity of the
importers and the steps taken by them to build trust.

The main aim of this study is to find the probable solutions in

finding and choosing capable importers in international trade.

Trade involves the transfer of goods or services from one person

or entity to another, often in exchange for money. Economists refer to a
system or network that allows trade as a market. An early form of trade,
barter, saw the direct exchange of goods and services for other goods
and services. Barter involves trading things without the use of money.
When either bartering party started to involve precious metals, these
gained symbolic as well as practical importance. Modern traders
generally negotiate through a medium of exchange, such as money. As
a result, buying can be separated from selling, or earning. The invention
of money (and later of credit, paper money and non-physical money)
greatly simplified and promoted trade.

1
 International trade gives rise to a world economy, in which
supply and demand, and therefore prices, both affect and are affected by
global events. Political change in Asia, for example, could result in an
increase in the cost of labor, thereby increasing the manufacturing costs
for an American sneaker company based in Malaysia, which would then
result in an increase in the price charged at your local mall. A decrease
in the cost of labor, on the other hand, would likely result in you having
to pay less for your new shoes.

A product that is sold to the global market is called an export,

and a product that is bought from the global market is an import. Imports
and exports are accounted for in a country's current account in the
balance of payments.

1.1 Export Promotion Councils

Export promotional Councils (EPC) are authorities which are

basically promoting, supporting and assisting firms in entering the
International markets and realizing their optimum potential from given
resources. They also provide guidance and assistance to the exporters.

In legal terms, export promotional councils are non-profit

organization registered as a company or society. Each Export
promotional council is responsible for his particular group of products.
Presently, there are fourteen Export Promotion Councils under the
administrative control of the Department of Commerce. These Councils
are registered as non-profit organizations under the Companies Act/
Societies Registration Act. The Councils perform both advisory and
executive functions. The role and functions of these Councils are guided
by the Foreign Trade Policy, 2009-14.

2
1.1.2 Role of EPC

Promoting Government Schemes: Export Promotional

Council (EPC) helps and promotes the exporters by making them aware
of the government schemes and other benefits.

Collect and restoring data: Export Promotional Council (EPC)

further promotes and collects the export data to compare the industry
growth and solve any hurdle in between.

Sending trade delegations: To make arrangements for sending

trade delegations and study teams to one or more countries for
promoting the export of specific products and to circulate the reports of
specific products and diversifying to new products.

Other roles: EPC also plays various roles at the policy level to
promote and grow the industry.

3
1.2 OBJECTIVES OF THE STUDY

1. To know the struggles faced by exporters in finding a capable

importer

2. To study about the ideas in choosing importers

3. To analyze the business of the respondents

4. To know about the tele-communicational advancements

5. To suggest solution for the problems in choosing capable

importers

1.3 LIMITATIONS OF THE STUDY

1. Time

2. Population size

3. Data reliability

4
1.4 STATEMENT OF PROBLEMS

The import and export industry is indeed big business. It offers

unlimited opportunities for anyone who has enough knowledge and
resources to challenge the tides and reap lucrative benefits which
otherwise cannot be realized in other types of business. However,
running an international trading company is far from being an adventure
full of rainbows and butterflies. Before you can be a successful importer
or exporter, you will face a lot of challenges, which if you fail to
recognize from the get-go, may cause your whole operations to cease to
function. That being said, most of the pitfalls in international trade can
be avoided. Aside from failure to take insurance, there are other mistakes
that could cost import and export business.

 Lack of knowledge in import and export regulations.

 Hiring an incompetent or unexperienced customs broker.
 Not declaring the correct value in customs.
 Unfamiliarity with Incoterms
 Failing to insure goods
 Not verifying the legitimacy of the supplier or buyer of the
product
 Avoiding these mistakes is hugely crucial to maintaining a
legitimate and streamlined import/export operations.

5
Difficulty finding and understanding overseas customers

Over 35 per cent of non-exporters claim that they don’t know

which export markets to target. Some of their greatest fears ranged from
not understanding export documentation, not speaking the language of
the country they’re selling in and a lack of overseas offices.

International credit risk

One of the number of concerns for a company aiming to export

abroad, is the credit worthiness of an international company.

Lack of finance

Access to finance is still a key issue when it comes to SMEs,

with most believing it will cost them a lot of money to become a global
business. As a result of traditional misconceptions, or own experiences
buying goods from overseas.

Risk-averse funding

Perhaps the greatest challenges for SMEs in moving from a

national to an international operation, is overcoming exchange rate
fluctuations, dealing with the cultural, legal and language barriers,
coping with extended payment terms and maintaining a healthy cash
flow

6
Finding capable importer

The most important part to take care of as an international trader

is finding the right importer. Exporters always pay attention when they
decide to do business with an importer or another. The risk of scams is
present in every country that importer want to deal with, but the exporter
can still avoid it. Also, once they end up with a good importer that helps
with the import-export process; exporters should do their best to keep
them. A long-term business relationship is important in the international
trading market. And good contacts can be hard to find, so it is wise to
develop the good relationships. People can also find a good importer
based on some other exporters’ recommendations. There are many
forums dedicated to exporters where they can talk with others in similar
situations. Sometimes, these forums will expose potential scammers, so
exporters get an idea to keep business away from them. Stay away from
offers that sound too much to your advantage because real importers will
never make an offer that doesn’t benefit them. Also, exporters hesitate
to send free samples because these can be resold without their
knowledge.

Language barriers

Language barriers can be a real issue when trading

internationally. If the importer doesn’t speak the same language things
might be lost in the translation. The main trading language can be used
in English. However, many countries don’t have English as their
national language, so importers might use different translation programs
to communicate.

7
 CHAPTER II

REVIEW OF LITERATURE

2.1 MEANING

A literature review or narrative review is a type of review article.

A literature review is a scholarly paper, which includes the current
knowledge including substantive findings, as well as theoretical and
methodological contributions to a particular topic. Literature reviews are
secondary sources, and do not report new or original experimental work.
Most often associated with academic-oriented literature, such reviews
are found in academic journals, and are not to be confused with book
reviews that may also appear in the same publication. Literature reviews
are a basis for research in nearly every academic field.

2.2 NATIONAL AND INTERNATIONAL REVIEW

KALDOR (1908)1 told that there are two growth inducing

effects when aggregate demand is maintained by exports rather than a
policy of stimulating concept. Firstly the concept led to growth and
secondly the pattern of consumer demand gives less concentrated on
manufacturing products than export demand.

8
 RATI RAM (1919)2 The aim of the study was to find the linkage
between exports and economic growth by employing larger data sets.
The result showed that the export performances on the growth does seem
small in the LDC over the period 1960-70. During which the period the
positive impact of export growth seems quite large and of almost equal
magnitude.

MYINT (1920)3 believes that the pre trade situations was one of
the surplus productive capacity and not of full employment. He denied
to accept the export bias argument used against the nineteenth century
trade growth patterns. The real choice of the export economies was not
between using resources for export and home consumption.

BELA BALASSA (1928)4 examined the effects of exports on

the growth of the economy in a group of 11 countries. The empirical
results showed an increase in the growth of the sub periods through
Spearman rank correlation. The data was taken for the period 1960-73.

PANOS C.AFXENTIOU AND APOSTOLOS SERETIES

(1928)5 the purpose of the paper was to test casualty between GNP and
exports, and the reverse casualty in the 16 industrialized countries for
the period 1950 – 85. The method of integration was the method which
was used by them to determine the casualty. They concluded that neither
the GNP nor the exports policies are necessarily effective in the growth
of exports.

9
 ANNE O. KRUEGER (1934)6 studied the impact of foreign
trade regimes on economic development. The study was about accessing
the GNP of 10 countries to find the correlation between the exports and
GNP. The data was taken for the year 1954-71. A simple log linear
regression specification was estimated. The specifications showed an
increase in the rate of growth of exports of 1 percent will just increase
the rate of growth on GNP by 0.1 percent.

KABRA (1983)7 read agricultural exports and analyzed the

agricultural sector to become crucial in the absence of foreign aid,
manufactured items in international markets, limited flow of foreign
currency. The need to evolve production was emphasized by him.

MANIKANDAN PILLAI (1998)8 made the model coir village

scheme and concentrated on the welfare of the coir workers. One of the
components of package was extension of coir village programme to 50
villages extra in Kerala. This was found to be a bench mark of the
survey.

ANANTHI (2000)9 studied the area growth, and the

productivity for exports. By analyzing the data of the year 1980 – 81 to
1998 – 99, the area production showed improving analysis. The rate of
growth was good and positive.

10
 David (2001)10 showed that eating chocolate could prevent
cancer and heart disease and contrary to popular belief also fights tooth
decay. Chocolate contain antioxidants called catechins and phenols.
Dark chocolate contain 53.5mg of catechins per 100gm. The cocoa
butter in the chocolate coats the teeth and may help to protect them by
preventing plaque forming. Antibacterial agents in cocoa beans offset
high sugar level.

P. MALEKANDATHIL (2001)11 Asian trade and Indo-

European trade area analyzed in brief focusing on routes, merchants,
licenses, monopoly, contracts and smuggling. This study briefly
explained the trade routes which will help the exporters in their trade.

P. DHINGRA (2002)12 Food and Agricultural Organisation

(FAO) has focused on the spreading awareness and creating them to the
consumers on food safety and other issues. His work has been joined on
the behalf of consumer voice as reference book.

HEISS (2003)13 experimented the effects of dinking rich

flavonoid drinks and the low flavanol drink. There were significant
increase in circulating nitric oxide and flow medicated dilation after the
investigation of drinks containing 176 to 185mg of flavanols. The
development of atherosclerosis is been prevented in the intake of rich
flavanol drinks.

11
 ITHACA (2003)14 by studying about the chocolates analyzed
that the antioxidants present in cocoa powder prevents cancer. It
contains Phenolic phytochemicals can stay off cancer, heart disease and
other ailments.

CONNOR (2005)15 demonstrated that there are less sugar and

more flavonoids in dark chocolates. This makes an important role in
reducing the blood clot formation forming to be an antioxidant in the
body. This also reduces the blood pressure by consuming 30 calories
per day. The presence of this antioxidants increases the blood flow to
the arteries.

SCHROETER (2006)16 studied and told that there is direct

relationship between the intake of certain flavanols in cocoa, their
absorptions and their effects in the functions. Epicatechin is the element
which is present in the chocolates are the reason for the flavanols and
the effect in the blood vessels after the intake.

BABA (2007)17 found that daily intake of cocoa powder

decreased the participants susceptibility of LDL oxidation and increased
HDL cholesterol concentrations which could lead to decreased
incidences of arteriosclerotic disease.

12
 GELOK (2007)18 found that when consumes chocolates which
is flavonoid rich have 22 % lower risk of developing cardiovascular
disease. The top flavonoid rich food was considered to be chocolates.
Thus he concluded his workings by saying that the intake of chocolates
are good to health and especially dark chocolates are helpful in the flow
of blood to arteries.

MANSON (2007)19 stated that heart health is not only linked to

chocolate but also the body mass index and waist circumference. They
found that the men who preferred chocolate had a lower body mass
index and waist circumference

ANI (2008)20 the blood flow in the chocolate can be increased

by the cocoa flavanols which is naturally occurring compound in cocoa.
This may cause stroke and dementia. But it also helps to maintain the
cardio vascular functions and vascular complications which are
associated with skin care, health and blood vessels.

RAGHURAM AND ASOPA (2008)21 classified the type of rice

being exported. Increasing the supply sufficiency through agri jetties in
hubs like Handla and Mundra on West Coast, Paradip and
Vishakapatinam on East coast.

13
 ROMANIA (2008)22 examined the benefit of chocolate on
cardiovascular disease and showed that people having moderate amount
of dark chocolate regularly have significantly lower level of c-reactive
protein in their blood i.e., inflammatory state is considerably reduced.
There by also reduce the risk of cardiovascular disease for one-third in
women one-fourth in men.

SHARIF MOHAMMAD (2011)23 applied a closed input-

output model to the Indian data and tried to estimate the inter
relationship between trade, growth and income distribution in
developing countries like India.

ALI LAGZI AND THIMMARAYAPPA (2012)24 in their

book “AGRICULTURAL PROCESSED FOOD PRODUCTS FROM
INDIA: CHALLENGES AND OPPORTUNITIES” they studied about
the fruits and vegetables exports. This study provided chances in
correlating agricultural failures. This also benefitted the farmers,
consumers, business people in global text.

PRIYANKA SAHNI (2014)25 in her work “TRENDS IN

INDIA’S EXPORT: A COMPARATIVE STUDY OF PRE AND POST
REFORM PERIOD “discussed the trend and progression in the exports
happening in India. This study recommended that the government
should maximize the techniques in export and rebuild the pattern to
switch more skill intensive and more knowledge intensive services /
goods.

14
 K. BASKARAN UNNITHAN (2016)26 foretold that the future
of the coir industry in India lies on the constructive measures taken to
increase productivity to improve quality minimizing cost.

M.V. PYLEE (2017)27 tested the coir industry’s problems and

prospectus in India. The following were the issues that he met – issues
of shortages, employment opportunities, effects and bottlenecks of coir
yarn. These shortages gave rise to the unemployment problems.

1
https://doi.org/10.1007/978-1-349-09376-2_4

2
https://indiankanoon.org/doc/1380063/

3
http://www.juntadeandalucia.es/averroes

http://ieie.itam.mx/Alumnos2008/Theory%20of%20Economic%20Integration%20(B
elassa).pdf

5
https://link.springer.com/book/10.1007%2F978-1-4615-1017-8

6
https://www.researchgate.net/scientific-contributions/4479151_Anne_O_Krueger

7
https://journals.sagepub.com/doi/abs/10.1177/0019556119830118

8
https://shodhganga.inflibnet.ac.in/bitstream/10603/102792/9/09_chapter202.pdf

9
https://scholar.google.com/citations?user=VXy3HCsAAAAJ&hl=en

10
https://doi.org/10.1111/1467-9345.00161

11
http://irgu.unigoa.ac.in/drs/browse?value=Malekandathil%2C+P.&type=author

12
https://scholar.google.com/citations?user=LGdi_nUAAAAJ&hl=e

13
https://www.booktopia.com.au/anita-heiss/author251.html

14
https://journals.sagepub.com/doi/abs/10.1177/03058298030320030430

15
15
https://doi.org/10.1111/j.0029-4624.2005.00543.x
16
https://zfin.org/ZDB-PUB-061020-18

17
https://www.researchgate.net/publication/309381840_BABA-
induced_resistance_milestones_

18

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.1016%2Fj.bi
opsych.2010.01.033

19

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.1007%2Fs0
0481-010-0102-z

20
https://www.researchgate.net/publication/241910047

21
https://www.researchgate.net/scientific-contributions/2061056485_Raghuram_G

22

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.1057%2F97
80333982457_12

23
https://www.researchgate.net/scientific-
contributions/58677508_Mohammad_Sharif

24

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.13140%2F2.
1.1332.0323

25

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.9790%2F59
33-03210818

26

https://www.researchgate.net/deref/https%3A%2F%2Ffanyv88.com%3A443%2Fhttp%2Fdx.doi.org%2F10.15740%2FH
AS%1%2F87-92

27
https://www.researchgate.net/publication/26360843_

16
 CHAPTER III

RESEARCH METHODOLOGY

3.1 Theoretical Background

When people get on the international trading, there are many aspects
to consider as an exporter. They need to be informed when it comes to the
local norms in your country and the norms in the country you aim to export
to. Legal norms are crucial when it comes to international trading, and they
can ease or complicate the process. But besides these norms and the entire
legal aspect, there are other details to consider as well. The problems faced
by exporters are challenging and can delay the exporting process a lot.

When they start exporting goods or products, they have a real chance
to reach a significant profit and success. Here are the main difficulties that
exporters face when trading internationally and the best approach to have
on them.

 Geography and transportation

One of the first exporting challenges is to deal with is the distance.

Exporting goods to a country that is far away from home location, makes
the process bit complicated. Especially if the country is in a different
continent and therefore, a different system can be utilized. And the longer
the distance gets, the more complex transportation gets.

17
  Payment methods

The payment method is very important when it comes to

international trading. Some countries might not share the same fiscal system
with exporter’s country. There are also some international forms of payment
that will cover such situations, but they need to be present in both countries.
There are several ways to reach one of these payment methods.

 Finding the right importer

Maybe the most important part to take care of as an international

trader is finding the right importer. Always exporters should pay attention
when they decide to do business with an importer or another. Check the
comments and reviews that the importer might have from other exporters to
get a general idea.

3.2 Research Design

It’s a descriptive study (survey) where the exporters are been

analyzed and the problems faced by them in finding capable importers are
been studied.

Descriptive research generally precedes explanatory research.

Descriptive research does not fit neatly into the definition of either
quantitative or qualitative research methodologies, but instead it can utilize
elements of both, often within the same study. Descriptive statistics tell
what is, while inferential statistics try to determine cause and effect.

18
3.3 Type of Data

The data was collected only from primary sources.

Raw data, also known as primary data, is data (e.g., numbers,

instrument readings, figures, etc.) collected from a source. In the context of
examinations, the raw data might be described as a raw score.

3.4 Instruments used

Questionnaire through Google forms.

3.5 Population

The exporters in and around Tamil Nadu.

3.6 Sampling unit

The sampling unit for this study are the exporters mainly in Madurai,
Coimbatore, Chennai and Tanjore.

3.7 Sampling size

The sampling size of 53 exporting companies were taken for this

research study.

19
3.8 Sampling Technique

Convenient sampling technique was been used for the research

study.

A convenience sample is a type of non-probability sampling method

where the sample is taken from a group of people easy to contact or to reach.
This type of sampling is also known as grab sampling or availability
sampling. There are no other criteria to the sampling method except that
people be available and willing to participate. In addition, this type of
sampling method does not require that a simple Random sample is
generated, since the only criteria is whether the participants agree to
participate.

3.9 Tools Used

 Percentage Test

It refers to a special kind of rates, percentage are used in making comparison

between two or more series of data. A percentage is used to determine
relationship between the series.

Percentage = Number of Respondents x 100

Total number of respondents

20
  Chi square Test

This is an important test amongst the several tests of significance. It is used

in the context of sampling analysis for comparing a variance to a theoretical
variance.

Uses of chi-square:

i) To test independence of attributes.

ii) To test homogeneity.

iii) To test goodness of fit.

Chi Test Formula: (O¡ - E¡) ²

21
 CHAPTER IV
ANALYSIS AND INTERPRETATION

4.1 Percentage Analysis

It refers to a special kind of rates, percentage are used in
making comparison between two or more series of data. A percentage is
used to determine relationship between the series.

4.1.1 Number of countries exported

S.No Number of countries exported Respondents Percentage

1 1-5 10 18.80%

2 6 - 10 26 49.10%

3 More than 10 17 32.10%

53 100.00%

22
 18.80%
32.10%

49.10%

1-5 6 - 10 More than 10

Fig 4.1.1 Number of countries exported

Interpretations

From the above chart, it’s observed that there are 18.80%
companies exporting to 1 – 5 countries, 49.10% companies exporting to 6
– 10 countries and 32.10% companies exporting more than 10 countries.

23
4.1.2 Frequency in Exports

S.No Frequency in exports Respondents Percentage

1 Regularly 23 43.40%

2 Seasonally 22 41.51%

3 Not Often 8 15.09%

53 100.00%

24
 Not often 15.09%

Seasonally 41.51%

Regularly 43.40%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00%

Fig4.1.2 Frequency in Exports

Interpretations
From the above chart and table, it is analysed that there are
23 companies exporting regularly, 22 companies exporting seasonally and
8 companies exporting not often. The 23 companies exporting regularly
make a percentage of 43.40% and the 22 companies exporting seasonally
make a percent of 41.51% and the 8 companies which doesn’t export often
make 15.09%.

25
4.1.3 Exporters having official website

S.No Official Website Respondents Percentage

1 Yes 34 64.20%

2 No 19 35.80%

53 100.00%

26
 35.80%

Yes No
64.20%

Fig 4.1.3 Exporters having official website

Interpretations

From the above table and the chart, it is observed that from
the sample size of 53 companies 34 companies have an official website and
19 companies do not have an official website.

27
4.1.4 Exporters having office abroad

S.No Office Abroad Respondents Percentage

1 Yes 13 24.50%

2 No 40 75.50%

53 100.00%

28
 Yes No

24.50%

75.50%

Fig 4.1.4 Exporters having office abroad

Interpretations
From the above stated chart, it is found that there are totally
13 companies 24.50% having an office abroad and 40 companies making
75.50% do not own an office abroad from the taken sample of 53
companies.

29
4.1.5 Personal meet in exports

S.No Personal Meet Needed Respondents Percentage

1 Yes 11 20.76%

2 No 21 39.62%

3 Maybe 21 39.62%

53 100.00%

30
 39.62%

Necessity 39.62%

20.76%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

May be No Yes

Fig 4.1.5 Personal meet in exports

Interpretations
From the above mentioned table and chart, it is been concluded that
20.76% companies agree that there should be a personal meet for trade and
39.62% companies disagree the statement. And 39.62% companies say that
it differs with the situation.

31
4.1.6 Exporters in EPC

S.No EPC Member Respondents Percentage

1 Yes 31 58.50%

2 No 22 41.50%

53 100.00%

32
 Yes No

41.50%

58.50%

Fig 4.1.6 Exporters as a member of EPC

Interpretations
From the above stated diagram and table, it’s been stated that
31 companies (58.50 %) are a member of the EPC and 22 companies
(41.50%) are not a member of EPC yet they export by getting license.

33
4.1.7 Exporters connected with Embassy

S.No Connected with Embassies Respondents Percentage

1 Yes 24 45.28%

2 No 29 54.72%

53 100.00%

34
 45.28%

54.72%

Yes No

Fig 4.1.7 Exporters connected with Embassy

Interpretations
From the above chart, it is been observed that there are
45.28% companies out of 53 are connected with the embassies for getting
the export data and there are 54.72% companies out of 53 are not connected
with the embassies.

35
4.1.8 Promotion of Products

S.No Promotion Respondents Percentage

1 Online marketing 36 67.90%

2 Social Media 38 71.70%

3 Middlemen 18 34%

36
 Middlemen

Social Media

Online Marketing

0.00% 20.00% 40.00% 60.00% 80.00%

Fig 4.1.8 Promotion of Products

Interpretations
From the above chart, it is been observed that there are
67.90% companies out of 53 promote through Online Marketing, 70.7%
companies out of 53 promote through Social Media and 34% through
Middlemen.

37
4.1.9 Targeting Importers

S.No Targeting importers Respondents Percentage

1 Wholesaler 39 73.40%

2 Retailer 35 66%

3 End Customer 13 24.10%

38
 End Customer
15%
Wholesaler
45%

Retailer
40%

Wholesaler Retailer End Customer

Fig 4.1.9 Targeting Importers

Interpretations
From the above chart, it is been observed that there are 15%
companies out of 53 target End Customer, 66% companies out of 53
Retailer and 73.40% through Wholesaler.

39
4.1.10 Building Trusts

S.No Building trusts Respondents Percentage

1 Personal meet 18 34%

2 Quality Assurance 43 81.10%

3 Fast Logistics 37 69.80%

4 After Sale Services 20 37.70%

40
 37.70% 34%

69.80%
81.10%

Personal Meet Quality Assurance Fast Logistics After Sale service

Fig 4.1.10 Building Trusts

Interpretations
From the above chart, it is been observed that there are 34%
Personally meet to build trusts, 81.10% through Quality assurance, 69.80%
through Fast Logistics and 37.70% through After Sale Services to build
trust.

41
4.1.11 Necessity for personal meet

S.No Necessity Respondents Percentage

1 Yes 11 20.80%

2 No 21 39.60%

3 May be 21 39.60%

53 100.00%

42
 39.60%

Necessity 39.60%

20.80%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Maybe No Yes

Fig 4.1.11 Necessity for personal meet

Interpretation

From the table, it is observed that there are 39.60%

respondents who doesn’t agree with personal meet, 39.60% are in dilemma
and 20.80% agree for personal meet.

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4.2 Chi Square Test Analysis
The term "chi-squared test," also written as χ2 test, refers to certain
types of statistical hypothesis tests that are valid to perform when the test
statistic is chi-squared distributed under the null hypothesis.

4.2.1 Relation between Number of countries exported and the risk faced

Observed value

Often Occasionally Never Total

1-5 4 4 2 10
6 - 10 6 14 6 26
More than 10 3 14 0 17
Total 13 32 8 53

Expected Value

Often Occasionally Never Total

1-5 2.45283 6.03773585 1.509434 10
6 - 10 6.377358 15.6981132 3.924528 26
More than 10 4.169811 10.2641509 2.566038 17
Total 13 32 8 53

P = 0.117088

Table 4.2.1

Relation between Number of countries exported and the risk faced

44
 Degree of Table Value Calculated Value Interpretations
Freedom
2 5.99 0.117088 Accepted
Null
Hypothesis

Interpretations

The null hypothesis is taken as there is a relation between the

number of countries exported and the risk faced.

From the above table, it’s found that the calculated value is
P = 0.117088 which is below the table value 5.99 at P = 0.05. And hence
the null hypothesis is accepted.

45
4.2.2 Relation between Internet in business and promotion

Observed Value

Most helpful More helpful Helpful Not helpful Total

Online Marketing 19 11 6 0 36
Social Media 13 12 11 5 41
Middlemen 3 6 5 4 18
Total 35 29 22 9 95

Expected Value

Most helpful More helpful Helpful Not helpful Total

Online Marketing 13.26315789 10.98947368 8.336842 3.41052632 36

Social Media 15.10526316 12.51578947 9.494737 3.88421053 41

Middlemen 6.631578947 5.494736842 4.168421 1.70526316 18

Total 35 29 22 9 95

P = 0.04788

Table 4.2.2

Relation between Internet in business and promotion

46
 Degree of Table Value Calculated Value Interpretations
Freedom
3 7.82 0.04788 Accepted
Null
Hypothesis

Interpretations

The null hypothesis is taken that there is a relation between

the internet and the promotions taken. From the above table, it is been found
that the calculated value of P is 0.04788 and is less compared to the chi
square table P = 7.82 at 0.05 value. And hence the null hypothesis is
accepted.

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4.2.3 Relation between Internet in business and Finding importers

Observed Value

Most helpful More helpful Helpful Not helpful Total

Online Advertisements 16 12 12 1 41
B2B Portals 13 8 6 0 27
Personal Meet 5 8 3 3 19
Client References 5 6 5 3 19
Total 39 34 26 7 106

Expected Value

Most helpful More helpful Helpful Not helpful Total

Online 15.08490566 13.1509434 10.0566 2.70754717 41

Advertisements
B2B Portals 9.933962264 8.660377358 6.622642 1.78301887 27
Personal Meet 6.990566038 6.094339623 4.660377 1.25471698 19
Client References 6.990566038 6.094339623 4.660377 1.25471698 19
Total 39 34 26 7 106

P = 0.2337

Table 4.2.3

Relation between Internet in business and Finding importers

48
 Degree of Table Value Calculated Value Interpretations
Freedom
3 7.82 0.2337 Accepted
Null
Hypothesis

Interpretations

The null hypothesis is that there is a relation between the

usage of internet and finding importers.

From the table, it is observed that the calculated value is

P = 0.2337 and is less than the table value P = 7.82 at 0.05. And hence, it
is concluded that there is a positive relation between internet and finding
importers.

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4.2.4 Relation between frequency in exports and the difficulties faced

Observed Value

Regularly Seasonally Not Often Total

Logistics 6 4 3 13
Payment 5 4 1 10
Finding capable customers 12 14 4 30
Total 23 22 8 53

Expected Value

Regularly Seasonally Not Often Total

Logistics 5.641509434 5.39622642 1.96226415 13
Payment 4.339622642 4.1509434 1.50943396 10
Finding capable customers 13.01886792 12.4528302 4.52830189 30
Total 23 22 8 53

P = 0.81875

Table 4.2.4

Relation between frequency in exports and the difficulties faced

50
 Degree of Table Value Calculated Value Interpretations
Freedom
2 5.99 0.81875 Accepted
Null
Hypothesis

Interpretations

The null hypothesis is taken to be that there is a positive

relation between the frequency in exports and the difficulties faced by
them.

From the above table, it is been found that the calculated

value P = 0.81875 is less than the Table value which is P = 5.99 at 0.05.
And hence the null hypothesis is accepted.

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 CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSIONS

5.1 Findings
On analyzing, the following are been observed –

 32.10% companies have exported to more than 10 countries.

 50.9% companies are basically agri exporters.
 43.40% companies have a regular export business.
 64.20% companies own an official website for their own.
 75.50% companies don’t have office abroad and are focused only
with the office domestically.
 41.50% companies are not a member of EPC yet export but getting
license.
 35.85% companies carry on their business through internet and the
tele-communication advancements.
 77.4% companies make online advertisements in B2B portals to find
an importer.
 41.5% companies analyze the importer’s capacity through their
payment methods.
 24.53% companies face risk often in doing export.
 56.60% companies has a common problem of finding a capable
importer around the world.

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  20.76% companies agree that there must be a personal visit between
the traders for avoiding difficulties in trade.
 45.28% companies are connected with the embassies to have a
record of the EXIM countries and importers.
 There is a good relation between the number of countries exported
and the risk faced.
 There is a positive relationship between the internet and the
promotions taken.
 There is a relation between the usage of internet and finding
importers.
 There is a positive relation between the frequency in exports and the
difficulties faced by them.

5.2 Suggestions

 To find capable importers, the firm should globalize itself. A firm

should be well known so that the importers search for them. Only
when a firm socializes and globalizes it becomes easier for it to have
regular trade.
 The business should transform from being traditional. The world
moves faster than people wink their eyes. There are many
technological advancements being updated every second. It’s the
firm’s duty to be updated to compete with today’s world.

53
 A company should be confident with their communication to retain
an importer. Miscommunication breaks the mutual relation between
them.
 There is a huge competition in the market. To compete with them, a
firm should be expertise in the product that they supply. They must
know about the price, quantity, season and the countries demanding
such products. A firm with all expertise shines.
 Promotion of products is needed. To find a new customer and to
retain a prevailing customer, the firm needs huge promotion of the
products that they have and the service that the serve.
 To attract a customer, a firm should have something unique. Find
them and nurture them.
 Connect with the embassies to have the data of the EXIM records
happening throughout the world. This helps to analyze the demand
for the product in a particular country.
 Become a member of the export council, they provide awareness in
the technological advancements and also services like adjudication
if problems happen.

54
Conclusion

There are many new export companies into market.

This is because of the awareness among the people. Export business
has become a status. People who export are thought of doing a white
collar business.
To compete with the prevailing competition the
companies has to be expert in any one product and retain their
customers through various services. The main problem that many
face is finding capable importers. To avoid them, firms should
reduce the credit sale and provide products at DA or DP basis. This
will help them to get cash for their product. It’s been advised that
the company to have an ECGC insurance so that there will be less
chance of loss.

Future Scope

Export is the physical movements of products from one country to

another. This exports brings in foreign exchange to the country. This helps
to solve the debts owed by exporters to others. There are many products
being exported. These areas provide plenty of scope to the researcher to do
further research in future.

1. Agencies, brokers in finding importers.

2. Insurance policies other than ECGC.
3. Challenges faced by exporters in receiving payment from
incapable importers.

55
Bibliography

Books

i. Research Methodology by C R Kothari

ii. Statistical Methods by S P Guptha
iii. Business Research Method: An Applies Orientation by M R
Anusree, Mohapatra, Sanjay and S. Sreejesh
iv. Research Methods for Business: A skill-building Approach by
Roger Bougie and Uma Sekaran

Websites

a) http://shodhganga.inflibnet.ac.in:8080/jspui/
b) https://www.researchgate.net/
c) https://commerce.gov.in/InnerContent.aspx?Id=6

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