The Foreign Trade Policy 2015-2019 aimed to increase India's share in global exports to 3.5% and double exports of goods and services. It introduced the Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS) to incentivize exporters and simplified documentation through the Aayat-Niryat Form to improve ease of doing business.

While TNCs, MNCs, and MNEs are often used interchangeably, a 'Global Corporation' is specifically defined by its strategy of operating in many countries with a highly integrated approach, treating the world as a single market rather than a collection of individual national markets.

A 'Franco' or 'Free Domicile' invoice indicates that the seller bears all costs and risks associated with transporting the goods until they are delivered to the buyer's specified location or doorstep. This term ensures that the buyer does not incur any additional shipping or handling charges upon arrival.

Trade in services refers to the provision of intangible economic activities. While computer hardware, textiles, and aerospace products are classified as physical goods (merchandise), insurance is a service provided by financial institutions, falling under the tertiary sector of the economy and international trade in services.

Historically, Mauritius has been the largest source of cumulative FDI inflows into India. This is largely attributed to the Double Taxation Avoidance Agreement (DTAA) between India and Mauritius, which made it a preferred route for foreign investors routing capital into the Indian market over several decades.

Arbitrageurs seek to profit from price discrepancies of the same asset in different markets. In foreign exchange, they identify small inconsistencies in exchange rates across different geographical locations or platforms and execute simultaneous buy and sell orders to capture the risk-free profit, which helps in maintaining market efficiency and price parity.

Adam Smith introduced the theory of absolute advantage in his 1776 work, 'The Wealth of Nations'. He argued that countries should specialize in producing goods that they can manufacture more efficiently than other nations, thereby increasing global productivity and wealth through trade. This theory challenged the mercantilist view that trade was a zero-sum game, emphasizing that both parties benefit from specialization and exchange based on absolute cost advantages.

The Balance of Payments (BoP) is a systematic record of all economic transactions between residents of a country and the rest of the world. It primarily consists of the Current Account and the Capital Account. A 'Loss Account' is an internal financial statement of a business entity, not a component of national BoP.

FEMA defines foreign exchange broadly to include foreign currency and instruments payable in foreign currency. However, the specific legal interpretation of 'foreign exchange' under the Act excludes certain domestic instruments or specific banking drafts depending on the currency of payment and origin, as defined in the statute.

Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology, and capital. It encompasses the migration of labor seeking better opportunities, the flow of foreign direct investment (capital), and the rapid dissemination of technological innovations across borders, all of which contribute to a more interconnected global economic system.