BA7023 - INTERNATIONAL TRADE FINANCE

VALLIAMMAI ENGINEERING COLLEGE

DEPARTMENT OF MANAGEMENT STUDIE
BA7023 - INTERNATIONAL TRADE FINANCE
UNIT I
PART A
1. What is meant by International trade?
2. Sate any two reasons why countries engage in international trade
3. Briefly explain the difference between international trade and domestic trade
4. What is meant by Balance of Trade?(BOT)
5. Explain the concept of Balance of Payment(BOP)
6. Define BOP Disequilibrium
7. What are the barriers to International trade?
8. What are the causes of current account deficit?
9. What is meant by capital account?
10. Why countries impose trade barriers?
11. What are the risk associated with IT?
12. Write a short note on: subsidies
13. What is meant by depreciation?
14. What is meant by Advalorem duties?
15. Briefly explain trade embargo
16. What are the components of BOP account
17. Briefly explain VAT
18. What is meant by credit risk?
19. Briefly explain the term dumping
20. Define trade surplus.

PART B
1. Explain in depth features of indian EXIM policy
2. Explain the objectives and functions of World Trade Organisation(WTO)
3. What is Balance of Trade? Which factors influence the trade between countries.
4. Explain the current trends in IT.
5. Describe the structure of WTO
6. Discuss the advantages and disadvantages of WTO
7. State and discuss important barriers to IT in India.
8. Explain Non Tariff Barriers to trade
9. Explain the role of WTO in removing the barriers to international trade
10. Discuss the effect of economic growth on foreign trade

Dr.J.Padmini Prof & Head Department of Management Studies

 BA7023 - INTERNATIONAL TRADE FINANCE

UNIT II
PART A
1. What is Letter of Credit(LC)
2. What are the objectives of Import Licensing?
3. State the features of LC.
4. Write a brief note on Industrial License
5. What is meant by forfeiting?
6. Define the term Bill of Exchange
7. What are the various schemes of ECGC?
8. What are different types of LC you are aware of? Explain briefly Red-Clause LC
9. What is meant by consignment sale?
10. What is meant by D/A D/P?
11. What is meant by open Account.
12. Differentiate between Revocable and Irrevocable Letter of Credit
13. List any three benefits of LC.
14. Define the role of Advising bank & Confirming bank.
15. Briefly explain the terms: INCO FOB
16. What does CIF stand for?
17. Different types of Bill of Exchange
18. What are the objectives of ECGC
19. Define the concept of packing credit guarantee
20. What are the primary functions of EXIM bank

Part B
1. Explain in detail Bankers Letter of Credit
2. What is forfeiting? Discuss its Significance
3. Explain in detail Pre-Shipment credit facility offered by banks to Indian Exporters
4. List the financial guarantees offered to Banks by ECGC. Explain any three in detail
5. Explain Post Shipment Finance offered to the Exporters
6. Explain in detail Bill of Exchange
7. Explain in detail the various methods of financing import of capital goods in India
8. Analyze the role of EXIM Bank in promoting foreign trade in India
9. Enumerate the objectives and services offered by ECGC
10. List and explain the various INCO terms

Dr.J.Padmini Prof & Head Department of Management Studies

 BA7023 - INTERNATIONAL TRADE FINANCE

UNIT III
PART A
1. Define foreign exchange rate?
2. Briefly describe the foreign exchange market
3. How is the foreign exchange market segmented
4. What do you mean by spot transactions?
5. What is FEMA?
6. What is forward transactions
7. What are difference between forward and future contracts
8. List the Methods of forecasting forex rate
9. What is foreign exchange exposure
10. Why do firms need to manage foreign exchange exposure
11. What are the hedging techniques
12. What is currency future
13. Who is an option buyer
14. Who is an Option Seller
15. What is meant by Call option
16. What is money market hedging
17. Who are arbitrageurs speculators
18. What is meant by SWIFT
19. What is meant by time series Modeling technique
20. What is meant by credit function of the foreign exchange market

PART B
1. Briefly explain fundamental techniques of forecasting exchange rates
2. Explain the factors influencing the rate of exchange
3. Explain the provisions of FEMA
4. How do Businesses hedge with forward and futures
5. Describe the procedure of Money Market hedging
6. How hedging with currency option is useful in international trade
7. Explain the characteristic features of futures contract
8. What is foreign exchange reserve? Explain its significance
9. Describe the effects of exchange rates in foreign trade
10. Explain the Purchasing Power Parity (PPP) Theory of exchange rate
determination

Dr.J.Padmini Prof & Head Department of Management Studies

 BA7023 - INTERNATIONAL TRADE FINANCE

UNIT IV
PART A
1. Briefly explain the need for export documents
2. What is meant by certificate of origin
3. What are the contents of Bill of lading
4. What are the different types of Bill of Exchange you are aware of.
5. Describe the document of Content (sales bill)
6. What purpose does the consular Invoice serve
7. Write a short note on Packing List & Note
8. How useful are the certificate of weight and certificate of Measurement
9. Briefly explain the certificate of Inspection
10. What is the significance of certificate of health
11. Write a note on Airway Bill and postal receipt
12. Write a note on Multimodal Transport Document
13. Briefly explain about the GR form
14. Write a note on SOFTEX Form
15. Discuss about UPCDC
16. What is the need for export certification
17. What are the basic principles of GSP
18. What is the role of GSP
19. What is the content of proforma Invoice
20. What are the different types of Export Certificate for Quality

PART B
1. Letter of Credit is an important financial document in export trade. Discuss
2. Discuss the significance of Bill of exchange
3. List the types of invoices used by companies involved in IT. Explain any 3 in
detail
4. Explain about the documents that helps to calculate the freight charges in IT
5. Bill of Lading is issued by the shipping company acknowledging receipt of goods
on board Elucidate
6. Explain the types of export declaration forms
7. Explain about the insurance policies available to the exporter
8. Describe the different types of inspection procedure followed to ensure the quality
of export consignments
9. Write short note on (i). Consular Invoice (ii) Types of Bill of Lading
10. Discuss UPCDC norms.

Dr.J.Padmini Prof & Head Department of Management Studies

 BA7023 - INTERNATIONAL TRADE FINANCE

UNIT V

PART A
1. Define the term Export Promotion
2. Briefly explain the duties & Responsibilities of office of the DGFT
3. What role does the development commissioners of SEZ perform to promote
export
4. Write a note on coffee board and Tobacco board
5. What are obstacles to Export promotion
6. Explain the activities undertaken by IIFT
7. Mention some important features of EPCG schemes
8. What are functions performed by DGSD
9. How does Agricultural and Processed food products Export development
authority (APEDA) Continue to Export growth
10. Write a note on state trading corporation
11. List the Service performed by India Trade Promotion Organization (ITPO)
12. What are objectives of federation of India Export Organizations
13. What kind of Income tax concessions export firms enjoy
14. Write a note on International Price Reimbursement scheme
15. Define Economic Zones
16. Write a note on Rubber board
17. Briefly explain the role of Export Inspection Council
18. Explain export obligation related to EPCG scheme.
19. Write a note on Duty free replenishment certificate
20. Explain the objectives of Economic zones.

PART B
1. Why Export promotion is required?
2. What are the advantages of Export Promotion
3. What are the autonomous / Government established organisations to support
export activities
4. Explain the role of export promotion councils(EPCs) in promoting Exports
5. List and explain the suggestions to promote exports
6. Explain the export promotion measures for efficient export production
7. What are the steps taken to assist the exporers in their marketing effort
8. Write short notes on EPZ Export Houses & EOU
9. What is meant by EPCG? What are its features
10. Explain about advance License Scheme

Dr.J.Padmini Prof & Head Department of Management Studies

 BA7023 - INTERNATIONAL TRADE FINANCE

Dr.J.Padmini Prof & Head Department of Management Studies