The Import of Indian Cotton to the UK and the Export of UK Passenger Cars to the PRC

Executive Summary
In this report, the author has analysed the import and export business base in the UK. The report will be analysed Indian cotton exports to the UK and Chinese imports of passenger cars from the UK. The structure of this report is as follows: * To introduce the economies of the UK, India and China * UK import and export businesses * The steps of establish the import and export businesses * Analysis of the chosen markets
The main option of the report’s beginning is introducing the economies of the UK, India and China. Secondly, the next section analyses the demand for Indian cotton in the UK and for passenger car in China. The third section focuses on the import duty code number and exchange rate.
Finally, examines the relevant business performance indicators to analyse Indian cotton exports to the UK and Chinese passenger car imports from the UK. To evaluate of the potential issues pertaining to trading in different environments and alternative methods of market entry follows.

Contents 1.Introduction of the Economies of the UK, India and China 2 2.UK Import and Export Business 3 2.1 The Import Product of Indian Cotton 3 2.1.1 World Cotton Production 3 2.1.2 World Cotton Exports 4 2.2 UK Export Passenger Car to China Market 6 3. The Steps of Establish the Import and Export Businesses 7 3.1 Import Licence 7 3.2 The Commodity Code for Importing 8 3.3 Exchange rate fluctuation 11 4. Analysis of the chosen markets 13 4.1 Foreign Direct Investment 13 4.1.1 FDI Trends in UK 14 4.1.2 FDI Trends in China 14 4.2 Business Performance Indicators 16 4.2.1 Analysis of the Indian Cotton Export Business 16 4.2.2 Analysis of the Export UK Passenger Car to China 21 4.3 Evaluation of potential trading issues in Import-Export Trade 25 Conclusion 27

1. Introduction of the Economies of the UK, India and China
Due to the freeze of global economy, the current situation of UK was depression. Since the financial crisis, the status of the domestic is unemployment remains uncomfortably high and the consumer’s purchasing power is quite low. Whitehall is bracing itself for the publication on Thursday of growth figures for the first quarter of 2013. Britain's gross domestic product (GDP) shrank by 0.3% in the final quarter of last year. If GDP contracts again – a second consecutive quarter of negative growth – Britain would enter another recession, its third since 2008 (Watt, N 2013). Therefore, the UK needs to improve the international trade to stimulate domestic economic growth.
Indian economy is agro-based and agriculture is its mainstay as it constitutes the backbone of the rural livelihood security system. Agriculture has been and still continues to be the life line of the Indian economy since economic security is essentially predicted upon the agricultural and allied sectors. As the largest private enterprise in India (more than 100 million farm holdings), agriculture supports more than 60% of the population, contributes nearly 19% to India’s Gross Domestic Product (GDP) and 11% to the total exports (Agarwal, O.P 2007).
Cotton, being a major agri-crop in India, has a major impact on overall Indian agriculture sector. Area under cotton cultivation constitutes almost 9% of the total area under agriculture in India; cotton crop contributes about 14-16% to the total agri-crop in India. This country has the largest area under cotton (9 million hectares) in the world constituting 26% of total world cotton area; India presently produces 4.59 million tonnes (27 million bales of 170 kgs each) which constitutes 18% of the world cotton production and 60 million people including 4.5 million farmers in India depend on cotton for their livelihood (Agarwal, O.P 2007).
China's economy, the world’s second-largest, has slowed and performed worse than many