IB0018-Export-Import Finance

Spring-2016

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Master of Business Administration - MBA Semester 4

IB0018-Export-Import Finance

Book ID-B1910

Assignment (60 Marks)

Note: Answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60.

Q1. Discuss the role of EXIM bank in promoting foreign trade.

Answer. Role of EXIM bank in promoting foreign trade

The Export-Import Bank of India, also known as Exim Bank of India, is the leading export finance institution in the country. The bank was set up in the year 1982 under the Export-Import Bank of India Act 1981. The Government of India launched the Export-Import Bank Of India with an aim to augment exports from India and also to combine the country's foreign trade and investment with the overall economic growth.

Q2. Explain the Mechanism for Disbursal of Pre Shipment Finance?

Answer. Pre shipment finance to exporters goes through following stages from sanction to its liquidation.

(i) Appraisal and Sanction of Limits: Banks check various aspects while making an appraisal and sanction of export credit to exporters. Some of the important aspects that banks check are product profile of the exporter in international market, political and economic environment of the

Q3. What are the various trade financing schemes?

Answer: Trade financing schemes

Export Credits

The EXIM Bank regularly offers credit facilities for exports to be availed by companies in India and abroad as well as commercial banks. The export credits offered by EXIM Bank of India can be divided in the following manner:

Q4. What are the various Risks Coverage under ECGC Policies? Discuss in detail.

Answer: ECGC policies protect the exporters from a wide range of commercial and political risks and provide an exporter a competitive edge in dealing in international trade and:

• Helps in expansion of sales

• Helps in protecting the exporter against bad debts

Q5. Discuss the Methods of Import Finance And Import Financing Schemes.

Answer. Methods of Import Finance

(i) Financing Import under L/C: After the L/C is opened, the issuing bank sends it to the advising bank in the exporter’s country. The exporter is known as a beneficiary while the importer is known as an applicant. If the beneficiary is satisfied by the terms and conditions specified in the L/C, he ships the goods and obtains the documents as mentioned in the contract. These

Q6. What is Foreign Exchange Market? Discuss the Participants in Foreign Exchange Markets?

Answer. The foreign exchange market or currency market exists wherever international currencies are traded for another. Foreign exchange market, known also as forex market, is by far the largest market in the world. No other market of the world is comparable to forex markets in terms of cash value traded every day. Forex market transactions include trading between large banks, central banks, foreign exchange dealers, currency speculators, transnational corporations,

Spring-2016

Get solved assignments at nominal price of Rs.125 each.

Mail us at: subjects4u@gmail.com or contact at

09882243490