IB0018 – Export-Import Finance

 

DRIVE SPRING 2016

PROGRAM Master of Business Administration- MBA

SEMESTER 4

SUBJECT CODE &

NAME

IB0018 – Export-Import Finance

 

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

Objectives

Functions

Conclusion

 

Answer: Export-Import Bank of India (Exim Bonk, In short) is a wholly cerement-owned financial institution, set up for the purpose of financing, facilitating and promoting Indian’s ‘foreign trade. Exim Bank plays a four-pronged role with ‘regard to India’s foreign trade: those of

 

 

 

2 Explain the Mechanism for Disbursal of Pre Shipment Finance?

Mechanism for Disbursal of Pre Shipment Finance

 

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

  • 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

 

 

 

3 What are the various trade financing schemes?

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:

  • Companies in

 

 

 

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

Risks Coverage under ECGC Policies

 

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

 

 

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

Methods of Import Finance

Import Financing Schemes

 

Answer: Methods of Import Finance

  • 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

 

 

6 What is Foreign Exchange Market? Discuss the Participants in Foreign Exchange Markets?

Meaning

Participants

 

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