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International Business Class 11 Notes: Export, Import, WTO

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Business StudiesCBSE Class 11 · Chapter 11

International Business Class 11: Export and Import Procedures, Documents and WTO

Updated 15 October 2026 · Fact-checked

International Business is Chapter 11 of NCERT Business Studies for Class 11 (CBSE Unit 10, International Trade). It covers the meaning and benefits of international trade, the export and import procedures, the documents used (indent, letter of credit, shipping order, shipping bill, mate's receipt, DA/DP), and the meaning and objectives of the World Trade Organisation.

What International Business is about

International trade is the exchange of goods and services across national borders. No country can produce everything it needs efficiently: resources, climate, skills and technology differ. So countries specialise and trade. International business is wider: it includes trade in goods and services, licensing and franchising, and foreign investment; this unit concentrates on trade.

International trade differs from internal trade in many ways (different currencies, laws, customs, languages, more paperwork and risk), but it brings important benefits: to the nation (foreign exchange earnings, better use of resources, growth and employment, higher standard of living) and to firms (higher profits, use of spare capacity, growth prospects, a way out of intense domestic competition, and a broader business vision).

Because goods cross borders, trade needs careful procedures. The export procedure runs from receiving an enquiry and an order (indent), checking the buyer's credit (often through a letter of credit), getting licences and finance, producing and inspecting goods, booking space (shipping order), customs clearance with the shipping bill, loading (mate's receipt, then the bill of lading), and finally securing payment (with documents released against payment (DP) or against acceptance (DA)). The import procedure mirrors it from the buyer's side. Finally, the World Trade Organisation (WTO), set up in 1995, provides the rules and a forum for trade among its member countries. (Modes of entry and some older topics are not in the 2026-27 CBSE content.)

Weightage: This chapter is part of Unit 10, International Business. The syllabus groups Unit 10 with Unit 9, Internal Trade: together they carry 20 of the 80 theory marks in the school annual exam.Source: CBSE Business Studies (054) syllabus 2026-27, Class XI course structure, Unit 10 International Business

Key concepts

International trade: meaning and how it differs from internal trade
NCERT section 11.1

International trade is the buying and selling of goods and services between countries. It consists of exports (selling abroad) and imports (buying from abroad), and entrepot trade (importing goods to re-export them, sometimes after processing).

Why countries trade: unequal distribution of natural resources; differences in labour productivity, skills, technology and costs; so each country gains by specialising in goods it produces efficiently and importing others.

Differences from internal trade:

  • Nationality of buyers and sellers is different.
  • Mobility of factors (labour, capital) is restricted between countries.
  • Customer heterogeneity: tastes, languages and habits vary.
  • Business systems, laws and regulations differ; tariffs and quotas apply.
  • Political risks are higher.
  • Different currencies are used; exchange rates fluctuate.
  • More documentation and formalities; longer distances and time.

Worked example

Suppose a Kerala spice company sells pepper to a buyer in Germany and is paid in euros. Give three ways this differs from selling to a buyer in Delhi.

Try it first, then show the solutionSolution
  1. Different nationality and laws of the buyer
  2. Payment in a foreign currency with exchange-rate risk
  3. Customs clearance and many export documents

Answer: Nationality and laws, currency, and documentation/customs.

Benefits of international trade
NCERT section 11.1

Benefits to nations:
1. Earning foreign exchange, used to import capital goods, technology and essential items.
2. More efficient use of resources: produce what you are good at and trade for the rest.
3. Improving growth prospects and employment: export industries grow and create jobs.
4. Increased standard of living: access to a wider variety of goods and services.

Benefits to firms:
1. Prospects for higher profits: prices may be higher abroad.
2. Increased capacity utilisation: selling abroad uses spare capacity; economies of scale.
3. Prospects for growth: large and growing foreign markets.
4. Way out of intense competition in the domestic market.
5. Improved business vision: global outlook, strategic thinking.

Worked example

Suppose a tractor maker uses only 60% of its plant capacity because Indian demand is limited, and starts exporting to African countries. Which two benefits to the firm does this show?

Try it first, then show the solutionSolution
  1. Exports use spare plant: increased capacity utilisation
  2. New large markets: prospects for growth (and higher profits)

Answer: Increased capacity utilisation and growth prospects.

Export procedure
NCERT section 11.3

The main steps (NCERT):
1. Receipt of enquiry and sending quotations (proforma invoice with price, quality, terms).
2. Receipt of order or indent from the importer.
3. Assessing the importer's creditworthiness and securing a guarantee for payment: usually by asking for a letter of credit.
4. Obtaining an export licence where needed; registering for an Importer-Exporter Code (IEC) with the DGFT and with export promotion councils.
5. Obtaining pre-shipment finance from a bank (packing credit).
6. Production or procurement of goods.
7. Pre-shipment inspection for quality, where required.
8. Excise and tax clearance (as listed in NCERT).
9. Obtaining a certificate of origin (needed for tariff concessions in the importing country).
10. Reservation of shipping space: the shipping company issues a shipping order.
11. Packing and forwarding to the port with proper marks.
12. Insurance of goods (marine insurance).
13. Customs clearance: the shipping bill and other documents are submitted; goods are examined.
14. Obtaining the mate's receipt after loading.
15. Payment of freight and issue of the bill of lading by the shipping company in exchange for the mate's receipt.
16. Preparation of the invoice.
17. Securing payment: documents (invoice, bill of lading, packing list, insurance policy, certificate of origin, L/C) are sent through banks with a bill of exchange; the importer gets them against payment (DP, sight draft) or against acceptance (DA, usance draft). Submitting documents to the bank to get payment is called negotiation of documents.

Worked example

Which document does the exporter receive after the goods are loaded on the ship, and what is it later exchanged for?

Try it first, then show the solutionSolution
  1. The captain/mate issues a receipt for goods loaded
  2. It is exchanged for the bill of lading after paying freight

Answer: Mate's receipt, exchanged for the bill of lading.

Import procedure
NCERT section 11.3

The main steps (NCERT):
1. Trade enquiry: the importer asks exporters for quotations (proforma invoice).
2. Procurement of import licence (if the goods need one) and an IEC number.
3. Obtaining foreign exchange: applying to a bank authorised by the RBI to release foreign exchange.
4. Placing an order or indent with the exporter.
5. Obtaining a letter of credit from the importer's bank, sent to the exporter.
6. Arranging for finance to pay for the goods on arrival.
7. Receipt of shipment advice from the exporter (invoice number, bill of lading number, vessel, date of sailing).
8. Retirement of import documents: the importer pays (sight draft) or accepts the bill of exchange (usance draft) to get the documents from the bank.
9. Arrival of goods: the carrier files the import general manifest, on the basis of which cargo is unloaded.
10. Customs clearance and release of goods: obtaining a delivery order, paying dock dues, filing a bill of entry, paying customs duty, and getting the goods released (often through a clearing and forwarding agent).

Worked example

Suppose an importer accepts a 90-day bill of exchange to get the shipping documents. What is this step called and what kind of draft is it?

Try it first, then show the solutionSolution
  1. Accepting the bill to obtain documents is retirement of import documents
  2. Payment after a period means a usance draft (documents against acceptance)

Answer: Retirement of import documents; a usance draft (DA).

Documents used in international trade
NCERT section 11.3
DocumentWho prepares or issues itPurpose
IndentImporter (or exporter receives it)Order placed by the importer for goods, with quantity, quality, price, delivery and payment terms
Letter of credit (L/C)Importer's bank, at the importer's requestGuarantee to the exporter's bank that payment up to a sum will be made on presentation of specified documents
Shipping orderShipping company (on the exporter's request through the agent)Instruction to the captain of the ship that goods may be taken on board after customs clearance
Shipping billExporter (or C&F agent)Main document for customs clearance of exports: details of goods, exporter, value, destination
Mate's receiptCaptain (mate) of the shipReceipt that the goods have been loaded on board; exchanged later for the bill of lading
Bill of ladingShipping companyDocument of title and receipt for goods shipped; contract of carriage
DA / DP (documents against acceptance / payment)Exporter's instruction to the bankDP: documents handed over only on payment (sight draft). DA: documents handed over on acceptance of a usance bill, payable later

Letter of credit: the most secure payment arrangement for exporters, because the importer's bank guarantees payment, provided the exporter presents the documents named in it.

DP vs DA: under documents against payment (sight draft), the importer gets the shipping documents (and so the goods) only on paying; under documents against acceptance (usance draft), he gets them on accepting the bill and pays on its due date, which is riskier for the exporter.

Worked example

Suppose an exporter does not know a new foreign buyer well. Which payment document and term should he insist on?

Try it first, then show the solutionSolution
  1. A letter of credit guarantees payment through the buyer's bank
  2. Documents against payment (sight draft) ensures documents are released only on payment

Answer: A letter of credit with documents against payment.

World Trade Organisation: meaning and objectives
NCERT section 11.3

The World Trade Organisation (WTO) is the international organisation that deals with the rules of trade between nations. It was established on 1st January 1995 as the successor to the General Agreement on Tariffs and Trade (GATT, 1948), with its headquarters in Geneva. India is a founder member.

Objectives:
1. To raise standards of living, ensure full employment and a large, steadily growing volume of real income and effective demand.
2. To expand the production of and trade in goods and services.
3. To make optimal use of world resources in line with sustainable development and environmental protection.
4. To ensure that developing countries, especially the least developed, get a fair share in the growth of world trade.
5. To reduce tariffs and other trade barriers and eliminate discrimination in international trade relations.
6. To provide a forum for negotiations and a dispute settlement mechanism among members.

Functions include administering trade agreements, acting as a forum for negotiations, handling trade disputes, monitoring national trade policies, and giving technical help to developing countries.

Worked example

Suppose two member countries disagree about a sudden rise in import duties on steel. How can the WTO help?

Try it first, then show the solutionSolution
  1. The WTO provides a dispute settlement mechanism under agreed rules
  2. Members can raise the issue and get a ruling, instead of a trade war

Answer: Through its dispute settlement process and agreed trade rules.

International Business in real life

Each concept, met in an everyday situation. Read the situation, answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Benefits of trade

Suppose you notice your phone is assembled in India with parts from several countries, and Indian software firms sell services worldwide.

Name two benefits of international trade shown.

Try it first, then show the solutionSolution
  1. Access to parts and products not made efficiently at home: higher living standards
  2. Software exports earn foreign exchange and create jobs

Answer: Higher standard of living and foreign exchange/jobs.

Memory hook: Trade lets every country do what it does best.

Letter of credit

Imagine selling a valuable item to a stranger in another city, and your friend's bank promises to pay you once you show the courier receipt.

Which trade document works like this?

Try it first, then show the solutionSolution
  1. A bank guarantees payment on presentation of documents
  2. The seller does not have to trust the buyer directly

Answer: A letter of credit.

Memory hook: Trust the bank, not the stranger.

WTO

Suppose a country suddenly bans imports of Indian mangoes claiming a health risk without scientific proof.

How can India respond under the WTO system?

Try it first, then show the solutionSolution
  1. India can raise the issue with the country through WTO rules on trade measures
  2. If not resolved, it can use the WTO dispute settlement process

Answer: Through WTO consultations and dispute settlement.

Memory hook: The WTO is the referee of world trade.

Topics in this chapter

International Business: key facts

International trade
Exports + Imports + Entrepot trade
Across national borders.
Benefits to nations
Foreign exchange, Efficient resource use, Growth and jobs, Higher living standards
Benefits to firms
Higher profits, Capacity utilisation, Growth, Escape competition, Business vision
Export documents (syllabus)
Indent, Letter of credit, Shipping order, Shipping bill, Mate's receipt, DA/DP
Also bill of lading, certificate of origin, invoice.
Payment terms
DP = documents against payment (sight draft); DA = documents against acceptance (usance draft)
WTO
Set up 1 January 1995; successor to GATT (1948); HQ Geneva; India a founder member
Rules, negotiations, disputes.

How the school exam asks International Business

The question patterns to expect, and the method that works for each.

Question typeHow it is askedMethod
Meaning, differences and benefitsInternational vs internal trade; benefits to nations and firms; 3-4 marks.Use headings; give an Indian example.
Export and import proceduresList or explain steps; identify a step from a case; 4-6 marks.Write steps in order; explain the key documents at each step.
DocumentsMeaning of indent, L/C, shipping order, shipping bill, mate's receipt, DA/DP; 1-3 marks.Who issues it, when, and why.
WTOMeaning and objectives; 3-4 marks.Year, predecessor, headquarters, then objectives.

Tricks to remember International Business

Short memory aids. Say each one aloud once, then use it on a question the same day.

  • Export documents in order: "I Love Sending Mangoes"

    Indent, Letter of credit, Shipping order/Shipping bill, Mate's receipt (then bill of lading).

    Use it when: Order of export documents.

  • DP vs DA

    DP: Pay first, Papers follow. DA: Accept now, pay later.

    Use it when: Payment terms.

  • Benefits to firms: "PCGEV"

    Profits, Capacity, Growth, Escape competition, Vision.

    Use it when: Benefits to firms.

International Business: exam-level solved questions

Ordered from exam level to HOTS. Cover the solution, write your own, then compare step by step.

Example 1: Letter of credit · 1 mark · MCQExam level

A letter of credit is issued by:
(a) the exporter
(b) the importer's bank
(c) the shipping company
(d) the customs office

Try it first, then show the solutionSolution
  1. The importer's bank guarantees payment to the exporter

Answer: (b) the importer's bank

Example 2: Mate's receipt · 1 mark · Assertion-reasonExam level

Assertion (A): The exporter exchanges the mate's receipt for a bill of lading.
Reason (R): The mate's receipt is issued by the captain of the ship after goods are loaded on board.
(a) Both A and R are true and R explains A
(b) Both A and R are true but R does not explain A
(c) A is true but R is false
(d) A is false but R is true

Try it first, then show the solutionSolution
  1. Both are true; R describes the mate's receipt but the exchange happens after paying freight to the shipping company

Answer: (b)

Example 3: Identify the export step · 3 marks · Case-basedHarder exam level

Suppose an exporter of handicrafts (i) asks his bank for packing credit to buy materials, (ii) gets a document from the chamber of commerce stating the goods were made in India, and (iii) applies to the shipping company to book space. Identify the steps.

Try it first, then show the solutionSolution
  1. (i) Obtaining pre-shipment finance (1)
  2. (ii) Obtaining a certificate of origin (1)
  3. (iii) Reservation of shipping space (shipping order) (1)

Answer: Pre-shipment finance, certificate of origin and reservation of shipping space.

Example 4: Benefits to firms · 4 marks · Long answerHarder exam level

Explain any four benefits of international business to firms.

Try it first, then show the solutionSolution
  1. Prospects for higher profits (1)
  2. Increased capacity utilisation (1)
  3. Prospects for growth (1)
  4. Way out of intense domestic competition (also improved business vision) (1)

Answer: Four benefits as above.

Example 5: DP vs DA · 3 marks · Short answerHarder exam level

Distinguish between documents against payment and documents against acceptance. Which is safer for the exporter?

Try it first, then show the solutionSolution
  1. DP: documents released only when the importer pays (sight draft) (1)
  2. DA: documents released when the importer accepts a bill payable later (usance draft) (1)
  3. DP is safer: the importer cannot get the goods without paying (1)

Answer: DP is safer for the exporter.

Example 6: WTO objectives · 4 marks · Long answerHarder exam level

State the meaning of the WTO and explain any three of its objectives.

Try it first, then show the solutionSolution
  1. WTO: international body for rules of trade between nations, set up in 1995 to succeed GATT, HQ Geneva (1)
  2. Raise living standards, employment and real income (1)
  3. Expand production and trade in goods and services (1)
  4. Reduce trade barriers and discrimination; fair share for developing countries (1)

Answer: As above.

Example 7: Order of documents in an export · 4 marks · Short answerHOTS / competency

Arrange these documents in the order in which an exporter normally meets them and state the purpose of each: shipping bill, indent, mate's receipt, letter of credit.

Try it first, then show the solutionSolution
  1. Indent: order received from the importer (1)
  2. Letter of credit: payment guarantee from the importer's bank (1)
  3. Shipping bill: customs clearance of the goods (1)
  4. Mate's receipt: proof of loading on the ship (1)

Answer: Indent → Letter of credit → Shipping bill → Mate's receipt.

Example 8: Advising a first-time exporter · 6 marks · Long answerHOTS / competency

Suppose a small Moradabad brassware maker gets her first order from a new buyer in Canada. Advise her on six key steps from order to payment, with the documents involved, so that she reduces her risk.

Try it first, then show the solutionSolution
  1. Confirm the order (indent) and check the buyer: insist on a letter of credit (1)
  2. Get an IEC and register with the export promotion council; take pre-shipment finance if needed (1)
  3. Produce goods to specification; arrange inspection and a certificate of origin (1)
  4. Book shipping space (shipping order), pack and forward, and take marine insurance (1)
  5. Customs clearance with a shipping bill; get the mate's receipt and then the bill of lading (1)
  6. Send documents through her bank on documents-against-payment terms and negotiate them to receive payment (1)

Answer: Follow the procedure with an L/C and DP terms to secure payment.

Case-study practice (Section E style)

Read the situation, then answer every part. In a school exam set on the board pattern this is a 4-mark question split into 1 + 1 + 2 marks.

Importing machinery for a garment unit

Suppose "Tiruppur Knits" wants to import a knitting machine from Germany. It asks German suppliers for quotations, gets foreign exchange sanctioned by its bank, places an order, and asks its bank to open a letter of credit. When the ship arrives at Chennai, the shipping company informs the port, and the firm files a bill of entry and pays customs duty.

  1. (i) · 1 mark

    What is the firm's request for quotations called?

    Answer

    Answer: Trade enquiry.

    The first step of the import procedure.

  2. (ii) · 1 mark

    What document does the carrier file on arrival?

    Answer

    Answer: Import general manifest.

    It lists the imported goods and is the basis for unloading.

  3. (iii) · 2 marks

    Explain the role of the letter of credit and of the bill of entry.

    Answer

    Answer: L/C: guarantees payment to the German exporter; bill of entry: used for customs assessment and clearance of the import.

    The L/C gives the exporter confidence to ship. The bill of entry declares the goods to customs, which assesses duty before releasing them.

Where the marks are

How a typical answer is split into step marks. Show every step: a right final answer alone rarely earns full marks.

Explain three documents used in export trade. [3 marks] (3 marks)

StepMarks
Each document: who issues it and its purpose (1 mark each)3

Explain four benefits of international trade to nations. [4 marks] (4 marks)

StepMarks
Each benefit with a line of explanation (1 mark each)4

Explain the export procedure with the documents involved. [6 marks] (6 marks)

StepMarks
Pre-order steps: enquiry, indent, L/C, licence/IEC2
Pre-shipment steps: finance, production, inspection, certificate of origin, shipping space, insurance2
Shipment and payment: customs (shipping bill), mate's receipt, bill of lading, invoice, payment (DA/DP)2

Where students lose marks in International Business

The slips examiners see most often, and what to write instead.

  • Mistake: Saying the exporter issues the letter of credit

    The exporter benefits from it.

    Do this: The importer's bank issues it at the importer's request, in favour of the exporter.

    Usually costs: 1 mark.

  • Mistake: Confusing the shipping order and the shipping bill

    Similar names.

    Do this: Shipping order: from the shipping company, for loading. Shipping bill: for customs clearance.

    Usually costs: 1 mark.

  • Mistake: Writing GATT and WTO dates wrongly

    Two organisations.

    Do this: GATT 1948; WTO 1 January 1995 (HQ Geneva).

    Usually costs: 1 mark.

  • Mistake: Explaining modes of entry (licensing, franchising, JV) in detail

    NCERT prints them.

    Do this: They are not named in the CBSE content; focus on trade, procedures, documents and WTO.

    Usually costs: Time lost.

NCERT exercise guide: International Business

What each exercise in the NCERT chapter tests, how to approach it, and a question of the same kind solved step by step. Questions here are written in our own words.

Short Answer Questions

What it tests: Meaning of international trade, documents (indent, L/C, shipping bill, mate's receipt, bill of lading), DA and DP.

How to approach it: Define the document and say who issues it and its purpose.

Same kind as the Short Answer questions

What is a shipping bill?

Show the solutionSolution
  1. The main document for customs clearance of export goods
  2. Prepared by the exporter or his agent, with details of goods, exporter, value and destination
  3. Customs permits loading after checking it

Answer: The key customs document for exports.

Long Answer Questions

What it tests: Benefits of international trade, export procedure, import procedure.

How to approach it: Number the steps; explain the documents in each.

Same kind as the Long Answer on the import procedure

Explain the steps in importing goods into India.

Show the solutionSolution
  1. Trade enquiry
  2. Import licence and IEC
  3. Obtaining foreign exchange
  4. Placing indent
  5. Letter of credit
  6. Arranging finance
  7. Shipment advice
  8. Retirement of import documents
  9. Arrival of goods (import general manifest)
  10. Customs clearance (bill of entry, duty) and release

Answer: Ten steps as above.

Practice questions on International Business

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

  1. Q1 · 1 mark · MCQExam level

    Importing goods in order to re-export them is called:
    (a) export trade
    (b) import trade
    (c) entrepot trade
    (d) internal trade

    Hint

    Re-export.

    Answer

    (c) entrepot trade

  2. Q2 · 1 mark · MCQExam level

    The WTO was established in:
    (a) 1948
    (b) 1991
    (c) 1995
    (d) 2001

    Hint

    Successor to GATT.

    Answer

    (c) 1995

  3. Q3 · 1 mark · Very short answerExam level

    What is an indent?

    Hint

    Order.

    Answer

    An order placed by an importer for goods, stating quantity, quality, price and terms.

  4. Q4 · 3 marks · Short answerExam level

    State three benefits of international trade to a nation.

    Hint

    Exchange, resources, growth.

    Answer

    Earning foreign exchange; more efficient use of resources; growth and employment (also higher standard of living).

  5. Q5 · 3 marks · Short answerHarder exam level

    Explain any three differences between internal and international trade.

    Hint

    Nationality, currency, rules.

    Answer

    Buyers and sellers of different nationalities; different currencies and exchange risk; different laws, tariffs and more documentation (also factor mobility, political risk, customer differences).

  6. Q6 · 3 marks · Short answerHarder exam level

    Explain the role of the shipping order and the shipping bill.

    Hint

    Space vs customs.

    Answer

    Shipping order: issued by the shipping company on booking space, instructing the captain to load the goods after customs clearance. Shipping bill: the main customs document with details of the goods, used to get permission to export.

  7. Q7 · 6 marks · Long answerHarder exam level

    Explain any six steps in the export procedure.

    Hint

    From enquiry to payment.

    Answer

    Receipt of enquiry and quotation; receipt of indent; securing payment guarantee (L/C); export licence/IEC; pre-shipment finance; production; pre-shipment inspection; certificate of origin; shipping space; packing, insurance; customs clearance; mate's receipt; bill of lading; invoice; securing payment (any six, explained).

  8. Q8 · 3 marks · Short answerHarder exam level

    What is retirement of import documents?

    Hint

    Pay or accept.

    Answer

    The importer pays (sight draft) or accepts the bill of exchange (usance draft) to obtain the shipping documents from the bank; only then can he claim the goods.

  9. Q9 · 4 marks · Short answerHarder exam level

    State four functions of the WTO.

    Hint

    Agreements, negotiations, disputes, monitoring.

    Answer

    Administering trade agreements; forum for trade negotiations; settling trade disputes; monitoring national trade policies (also technical help to developing countries).

  10. Q10 · 4 marks · Long answerHarder exam level

    Explain the import procedure steps from placing an order to arrival of goods.

    Hint

    Indent to manifest.

    Answer

    Placing indent; obtaining letter of credit; arranging finance; receiving shipment advice; retirement of documents; arrival of goods with import general manifest.

  11. Q11 · 3 marks · Short answerHarder exam level

    Why is a certificate of origin needed?

    Hint

    Tariff concessions.

    Answer

    It certifies the country where goods were made, so the importer can claim tariff concessions under trade agreements and the importing country can apply its rules on origin.

  12. Q12 · 4 marks · Long answerHOTS / competency

    Suppose a small exporter says, "Documents are just paperwork; I will ship first and sort out payment later." Explain the risks he faces and how the letter of credit and DP terms protect him.

    Hint

    Non-payment risk.

    Answer

    Without a payment guarantee, the foreign buyer may delay or refuse payment, and recovery across borders is costly and slow. A letter of credit makes the buyer's bank responsible for payment on presentation of documents; DP terms ensure the buyer cannot get the documents (and so the goods) without paying. Proper documents also ensure customs clearance and insurance claims.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

  1. 1.What is entrepot trade?Show answer

    Importing goods to re-export them.

  2. 2.Who issues the mate's receipt?Show answer

    The captain (mate) of the ship.

  3. 3.What is a shipping bill?Show answer

    The main document for customs clearance of exports.

  4. 4.What does DP stand for?Show answer

    Documents against payment.

  5. 5.Where is the WTO headquartered?Show answer

    Geneva.

  6. 6.Which document is the basis for unloading imported cargo?Show answer

    Import general manifest.

Best order to study it

  1. Learn the meaning of international trade and its differences from internal trade.
  2. Learn the benefits to nations and to firms.
  3. Learn the export procedure step by step with documents.
  4. Learn the import procedure step by step.
  5. Learn the listed documents (indent, L/C, shipping order, shipping bill, mate's receipt, DA/DP).
  6. Learn the meaning, objectives and functions of the WTO.

Quick revision checklist

The night before the exam: can you do each of these without looking?

  • Can you explain three differences between internal and international trade?
  • Can you list four benefits each to nations and firms?
  • Can you write the export procedure in order?
  • Can you write the import procedure in order?
  • Can you say who issues each trade document and why?
  • Can you distinguish DA and DP?
  • Can you state five objectives of the WTO?

International Business: frequently asked questions

Are modes of entry (licensing, franchising, joint ventures) in the syllabus?

NCERT prints them, but the CBSE 2026-27 content for this unit names international trade, its benefits, export and import procedures, the listed documents and the WTO. Joint ventures are covered in Private, Public and Global Enterprises.

Is the WTO in the NCERT chapter?

The current NCERT chapter mentions the WTO only in passing, but the CBSE syllabus asks for its meaning and objectives, so learn them from notes like these.

Do I need to know export promotion schemes and EPZs?

No. Foreign trade promotion measures and export processing zones were dropped in the rationalisation.

How many marks does this chapter carry?

It is Unit 10, which the syllabus groups with Unit 9 (Internal Trade) for 20 of the 80 theory marks.

Based on: CBSE Business Studies (054) syllabus 2026-27 (Classes XI-XII); NCERT Business Studies, Textbook for Class XI, Chapter 11 (Reprint 2026-27)