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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 exporters 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
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Rs.125 each.
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