Territorial waters, Exclusive Economic Zones

An exclusive economic zone (EEZ) is a sea zone prescribed by the United Nations Convention on the Law of the Sea over which a state has special rights regarding the exploration and use of marine resources, including energy production from water and wind.
The difference between the territorial sea and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second is merely a "sovereign economic right" which refers to the coastal state's rights below the surface of the sea.
Surface bed rights upto EEZ while complete full rights over waters to a state upto territorial waters line
Beyond 12 nautical miles, it is international waters where all countries have rights and is governed by UNCLOS
Contiguous zone is a buffer zone
In case of overlapping of territorial waters, between two states, the respective states will demarcate the boundaries. Generally, midway
In UNCLOS, international waters concept not present,

Territorial Waters	0-12 nm	Full sovereign authority
Contiguous waters	Upto 24nm	Set laws, regulate use, exploit resources, police zone. Foreign vessels permitted 'innocence passage'
EEZ	200nm	Rights over all natural resources in water column and seabed Other states have right to navigate, overflight, submarine pipes and cables
Continental Shelf		Exploit resources in the seabed and subsoil
High Seas

India International Exchange INX

India's first International Stock Exchange Center-
Located in International Finance Services Centre in G IFT Gujarat International Finance Tech city
Wholly owned subsidiary of the Bombay Stock Exchange BSE

It will provide electronic trading platform for companies that are going multinational
India’s first debt l sting platform which allows fund raising in any currency.

The domestic companies can now raise capital in foreign currency by issuing foreign currency dominated bonds and to trade in such securities

In Jan 2018, India INX listed Indian Railway's Finance Corporation first green bond in its Global Securities Market. It also became the first debt security to be listed on an exchange at IFSC in Gujarat's GIFT city

Currency

Hard Currency	Highest faith and needed by every economy, high level of liquidity
Soft currency	Value that fluctuates, uncertain because of country's economic and political uncertainity. Also refer to it as Weak currency
Hot currency	Temporarily high demand for that currency
Heated currency	Which is under pressure. Depreciating
Cheap Currency	When Govt starts re-purchasing the bonds before their maturities. Such money which flows into economy
Dear Currency	Govt issues bonds and money flows from public to Govt. Such money in economy

Washington Consensus

A standard form of relief package provided by Washington DC based institutions like IMF, World Bank, US Treasury department for crisis wracked developing countries
It is a set of 10 economic policy prescriptions considered to constitute the "standard" reform package

Macroeconomic stabilization,
economic opening with respect to both trade and investment, (Globalize)
Expansion of market forces within the domestic economy. (market driven rather than Govt driven)

Coined by English economist John Williamson

Trade Openness

Sum of exports and imports as percentage of GDP
Indian trade openness is 43 while for US 27, China 38

Types of Tariffs

Most Favoured Nation MFN Tariffs	MFN tariffs are what countries promise to impose on imports from other members of the WTO, unless the country is part of a preferential trade agreement This means that, in practice, MFN rates are the highest that WTO members charge one another. However, some countries impose higher tariffs on countries that are not part of the WTO
Preferential Tariffs	Virtually all countries in the world joined at least one preferential trade agreement, under which they promise to give another country's products lower tariffs than their MFN rate.
Bound Tariffs	The bound tariff is the maximum MFN tariff level for a given commodity line. This is the WTO negotiated maximum agreed tariff than can be imposed on specific commodity line
Applied Tariffs	Actual applied tariff on the import It is usually less than the bound tariff. After application of MFN tariff principle, preferential tariff principle, applied tariffs are measured

Example: In India, average bound tariff for dairy products is about 63.8% while its average applied tariff is 34.8%.

Advance Authorisation Scheme

Advance Authorisation is issued to allow duty free import of inputs which are physically incorporated in export produ ct
Exempted from payment of basic customs duty, additional customs duty, education cess, anti-dumping duty, safeguard duty
DGFT may by notification exclude any product from this scheme

Non-tariff measures

Non-tariff measures (NTMs) are policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded, or prices or both

NTMs are broadly distinguished into technical measures (SPS measures, TBTs etc.) and non-technical measures. These are further distinguished in hard measures (e.g. price & quantity control measures), threat measures (e.g. anti-dumping duties) and other measures such as trade-related finance and investment measures

Sanitary and Phytosanitary Measures - Measures applied to protect from risks that comes from contaminants or disease-causing organisms in food

Technical Barriers to Trade - Measures that acts as barriers to trade that refers to technical regulations and procedures, related to environmental and sustainable standards.

Ex: Labeling requirements as in case of refrigerators

Licensing, quotas, prohibitions & quantity-control - Measures to restrain the quantity of goods that can be imported

Price Control Measures - Measures intending to control or affect the prices of imported goods

Export Related Measures - Measures applied by the government of the exporting country on exported goods

Geographical restrictions on eligibility

Ex: India post COVID, restricted the land border countries in investing in Indian entities

Contingent Trade Protective Measures

NOTE: Tariff measures is a broader concept than tariff barriers. Tariff barriers generally seems to be welfare or trade reducing.

Certificate of Origin CO

A CO is an important international trade document that certifies that goods in a particular export shipment are wholly obtained, produced, manufactured or processed in a particular country.
They declare the ‘nationality’ and ‘content’ of the product and also ser declaration by the exporter to satisfy customs or trade requirements
The document is important to claim duty concessions under free-trade agreements (FTAs)
Two types

Normal CO

which certify that the goods are subject to no preferential treatment

Preferential CO

which certify that goods are subject to reduced tariffs or exemptions when they are exported to countries extending these privileges

International trade- Misc