BUSINESS SERVICES

1. BUSINESS SERVICES

2. SERVICE Service are all those economic activities that are intangible and imply an interaction to be realised between the service provider and the consumer. NATURE OF THE SERVICE • Intangibility:service are intangible that cannot be touched. They are experimental in nature. For example one cannot taste the Doctor’s treatment, or touch entertainment. One can only experience it. • Inconsistency:since there is no standard tangible product, service have to be performed exclusively each time. Different customers have different demand and expectation.

3. Inseparability: Another important characteristics of service is the simultaneous activity of production and consumption being performed. Inventory: service have little or no tangible component and, therefore, cannot be stored for a future use. That is, service are perishable and providers can, at best, store some associated goods but not the service itself. Involvement: One of the most important characteristics of service is the participation of the customer in the servicedelivery process.

4. DIFFERENCE BETWEEN SERVICE AND GOODS

5. Types of service • Business services. • Social services. • Personal services. • Business services: Business services are those services which are used by business enterprises for the conduct of their activities.

6. BANKING A banking company in India is the one which transacts the business of banking which means accepting, for the purpose of lending & investment of deposits of money from the public, repayable on demand or otherwise or withdrawable by cheques, draft, order or otherwise.

7. Types of Banking • Commercial banks. • Cooperative banks. • Specialised banks. • Central banks.

8. Functions of Commercial banks • Acceptance of deposits. • Lending of funds. • Cheque facility. • Remittance of funds. • Allied services.

9. e- Banking • Internet banking means any user with a PC & a browser can get connected to the banks web site to perform any of the virtual banking functions & avail of any of the bank’s services. There is no human operators to respond to the needs of the customers. The bank has a centralised data base that is web- enabled. All the service that the bank has permitted on the internet are displayed on a menu. The range f services offered by e-Banking are: Electronic Funds Transfer (EFT), Automated Teller Machines (ATM) & Point of Sales.

10. BENEFITS There are various benefits of e-Banking provided to customers: • e- Banking provides 24 hours, 365 days a year services to the customers of the bank. • Customers can make some of the permitted transactions from office or house or while travelling via mobile telephone. • It inculcates a sense of financial discipline by recording each & every transactions. The banks also stand to gain by e-Banking: • e- Banking provides competitive advantage to the bank. • e-Banking provides unlimited network to the bank & is not limit to the number of branches. • Load on branches can be considerably reduced by establishing centralised data base.

11. INSURANCE • Insurance is a contract or agreement under which one party agrees in return for a consideration to pay an agreed amount of money to another party to make a loss, damage or injury to some thing of value in which the insured has a pecuniary interest has a result of some uncertain event. The agreement/ contract is put in writing & is known as ‘policy’. The person whose risk is insured is called ‘insured’. & the firm which insures the risk of loss is known as insurer/ assurance under writer.

12. FUNCTIONS OF INSURANCE. • Providing certainty. • Protection. • Risk sharing. • Assist in capital formation • PRINCIPLES OF INSURANCE • Utmost good faith. • Insurable interest. • Indemnity. • Proximate causes. • Subrogation. • Contribution. • Mitigation

13. TYPES OF INSURNCE • Life insurance. • Fire insurance. • Marine insurance. • LIFE INSURANCE : Life insurance may be defined as a contract in which the insurer in consideration of a certain premium, either in a lump sum or a by other periodical payments, agrees to pay to the assured or to the person for whose benefits the policy is taken, the assured sum of money, on the happening of a specified event contingent on the human life or at the expiry of certain period.

14. Main elements of Life insurance: • The life insurance contract must have all the essentials of a valid contract. • The contract of life insurance is a contract of utmost good faith. • In life insurance, the insured must have insurable interest in the life assured. • Life insurance contract is not a contract of indemnity. • TYPES OF LIFE INSURANCE POLICY • Whole Life Policy. • Endowment Life Assurance Policy. • Joint Life Policy. • Annuity Policy. • Children's Endowment Policy.

15. FIRE INSURANCE • Fire insurance is a contract whereby the insurer, in consideration of the premium paid, under takes to make good any loss or damage caused by the fire during a specified period up to the amount specified in the policy. A claim for loss by fire must satisfy the 2 following conditions: • There must be actual loss. • Fire must be accidental & non intentional.

16. The main elements of a fire insurance: • In fire insurance, the insured must have insurable interest in the subject matter of the insurance. • Similar to the life insurance contract, the contract of fire insurance is a contract of utmost good faith. • The contract of fire insurance is a contract of indemnity. • The insurer is liable to compensate only when fire is the proximate cause of damage or loss.

17. MARINE INSURANCE • A marine insurance contract is an agreement where by insurer under takes to indemnify the insured in the manner & to the extent there by agreed against marine losses. There are three things involved in marine insurance. They are: • Ship or Hull insurance. • Cargo insurance. • Freight insurance.

18. The main elements off marine insurance: • Unlike life insurance, the contract of marine insurance is a contract of indemnity. • The contract of marine insurance is a contract of utmost good faith. • Insurable interest must exist at the time of loss but not necessary at the time of when the policy was taken. • The principle of causa proxime will apply to it. • COMMUNICATION SERVICE • Communication services are helpful to the business for establishing links with the out side world. The main services which help business can be classified in to postal & telecom services.

19. POSTAL SERVICE • Indian post & telegraph department provides various postal services across India. The various facilities provided by postal department are broadly categorised into: • Financial facilities. • Mail facilities. Postal department also offers allied facilities of the following type: • Greeting post • Media post • Direct post. • International money transfer. • Passport facilities • Speed post • e- Bill post

20. TELECOM SERVICE The various types of telecom services: • Cellular mobile services. • Radio paging services. • Fixed line services. • Cable services. • VSAT services. • DTH services. WAREHOUSING: The warehouse was initially viewed as a static unit for keeping & storing goods in a scientific & systematic manner so as to maintain their original quality, value & usefulness.

21. TYPES OF WAREHOSES • Private warehouses • Public warehouses. • Bonded warehouses. • Government warehouses. • Cooperative warehouses. • FUNCTIONS OF WAREHOUSING • Consolidation. • Break the bulk. • Stock piling. • Value added services. • Price stablisation. • Financing.

22. INTERNATIONAL BUSINESS- II

23. EXPORT PROCEDURE Steps involved in a typical export transaction: • Receipt of enquiry & sending quotations. • Receipt of order or indent. • Assessing importer’s credit-worthiness & securing a guarantee for payments. • Obtaining export license. • Obtaining pre-shipment finance. • Production or procurement of goods. • Pre- shipment inspection.

24. Excise clearance. • Obtaining certificate of origin. • Reservation of shipping space. • Packing & forwarding. • Insurance of goods. • Customs clearance. • Obtaining mates receipts. • Payment of freight & issuance of bill of lading. • Preparation of invoice. • Securing payment

25. IMPORT PROCEDURE Various steps involved in a typical import transaction for bringing goods into Indian territory: • Trade enquiry. • Procurement of import license. • Obtaining foreign exchange. • Placing order or indent. • Obtaining letter of credit. • Arranging for finance. • Receipt of shipment advice. • Retirement of import documents. • Arrival of goods. • Customs clearance & release of goods.

26. FOREIGN TRADE PROMOTION MEASURES & SCHEMES Major trade promotion measures are as follows: • Duty drawback scheme. • Export manufacturing under bond scheme. • Exemption from payment of sales taxes. • Advance license scheme. • Export promotion capital goods scheme(EPCG). • Scheme of recognising export firms as export house, trading house & super star trading house. • Export of services. • Export finance. • Export processing zones (EPZs). • 100% export oriented units (100% EOUs).

27. ORGANISATIONAL SUPPORT • Department of Commerce. • Export Promotion Councils(EPCs). • Commodity Boards. • Export Inspection Councils(EPCs). • Indian Trade Promotion Organisation(ITPO) • Indian Institute of Foreign Trade (IIFT). • Indian Institute of Packaging (IIP). • State Trading Organisation.

28. INTERNATIONAL TRADE INSTITUTIONS & TRADE AGREEMENTS The meeting was concluded with the setting up of three international institutions, namely the international monetary fond (IMF), International bank for reconstruction & development(IBRD) & the International Trade Organisational (ITO). They considered this three organisations as three pillars of economic development of the world.

29. WORLD BANK The International Bank for Reconstruction & Development (IBRD) , commonly known as World Bank, was result of the Bretton Woods conference. The main objective behind settings up this international organisational were to aid the task of reconstruction of the war affected economies of Europe & assist in the development of the under developed nation of the World. Function of the world bank Today, the world bank is no longer confined to simply providing financial infrastructure development. But it is rather significantly involved in areas like removal of rural property through raising productivity, increasing income of the rural poor, providing technical support, & initiating research & cooperative ventures.

30. INTERNATIONAL DEVELOPMENT ASSOCIATION International Development Association (IDA) was set up in 1960 as an affiliate of the world bank. Major objectives of IDA include: • To provide development finance on easy terms to the less developed member countries • To provide assistance for poverty alleviation in the poorest countries. • To provide finance at concessional interest rates in order to promote economic development. • To extend macro economic management service

31. FUNCTIONS OF IMF • Acting as short –time credit institution. • Providing machinery for the orderly adjustment of exchange rates. • Acting as a reservoir of the currencies of all the member countries, from which a borrower nation can borrow the currency of other nations. • Acting as a lending institution of foreign currency & current transaction. • Determining the value of a country’s currency & alerting it. • Providing machinery for international consultations.

32. WORLD TRADE ORGANISATION (WTO) AGREEMENTS WTO is a permanent organisation created by an international treaty ratified by governments & legislatures of member states. OBJECTIVES OF WTO: • To ensure reduction of tariffs & other trade barriers imposed by different countries. • To engage in such activities which improve the standards of living, create employment. • To facilitate the optimal use of the world’s resources for sustainable development. • To promote an integrated, more viable & durable trading system.

33. FUNCTIONS OF WTO • Promoting an environment that is encouraging to its member countries. • Acting as a dispute settlement body. • Laying down a commonly accepted code of conduct with a view to reducing trade barriers. • Ensuring that all rules regulations prescribed in the act are duly followed by the member countries for the settlement for their disputes. • Holding consultations with IMF & IBRD & its affiliated agencies to bring better understanding & cooperation. • Supervising on a regular basis the operations of the revised Agreements & Ministerial declarations relating to goods services & Trade Related Intellectual Property Rights (TRIPS)

34. BENEFITS OF WTO • WTO helps promote international peace & facilitates international business. • All disputes between member nation are settled with mutual consultations. • Rules make international trade & relations very smooth & predictable. • Free trade improves the living standard of the people by increasing the income level. • Free trade provides ample scope of getting varieties of qualitative products. • Economic growth has been fastened because of free trade. • The system encourages good government. • WTO helps fostering growth of developing countries by providing them with special & preferential treatment in trade related matters.

35. WTO AGREEMENTS • Agreements forming part of GATT. • Agreement on Textile & Clothing (ATC). • Agreement on Agriculture (AoA). • General Agreement on Trade in Services (GATS). • Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS).