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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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ASSIGNMENT
DRIVE SPRING 2016
PROGRAM Master of Business Administration- MBA
SEMESTER 4
SUBJECT CODE & NAME IB0018 – Export-Import Finance
BK ID B1910
CREDIT & MARKS 4 CREDITS, 60 MARKS
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Question. 1. Discuss the role of EXIM bank in promoting foreign
trade.
Answer:The main objective of Export-Import Bank (EXIMBank) is to provide financial assistance to
promote the exportproductioninIndia. The financial assistance provided by the EXIMBank widely
includes the following:
 Direct financial assistance
 Foreign investment finance
 Term loaning
Question. 2. Explain the Mechanism for Disbursal of Pre Shipment
Finance?
Answer:Packingcreditis nothing but a pre shipment finance given to exporters with a law interest
rate to boostexports.Packingcreditisgiven by authorized bank by the instruction of Reserve Bank
as a governmentpolicytopromote exporterstoearnforeigncurrencyto strengthen financial status
of a country.

2. Question. 3. What are the various trade financing schemes?
Answer:Trade finance signifiesfinancingfor trade, and it concerns both domestic and international
trade transactions. A trade transaction requires a seller of goods and services as well as a buyer.
Various intermediaries such as banks and financial institutions can facilitate these transactions by
financing the trade.
While a seller (or exporter) can require
Question. 4. What are the various Risks Coverage under ECGC
Policies? Discuss in detail.
Answer:RiskscoveredbyStandardPolicies fall into two categories – Commercial Risks and Political
Risks.
Commercial RiskswhichincludesInsolvencyof the buyer, Protracted default in payment ( Importer
has to paywithinfourmonthsof due date) and Under special circumstances specified in the policy,
buyer’s failure to accept the goods though there is no fault on the part of exporter.
Political Risks
Question. 5. Discuss the Methods of Import Finance And Import
Financing Schemes.
Answer:Export-ImportBankof India(EXIMBank) isa specializedfinancial institution, wholly owned
by Government of India, set up in 1982, for financing, facilitating and promoting foreign trade of
India.Includingthe share capital of ` 1,300 crore receivedduringthe yearfromGovernmentof India,
the paid up capital as on March 31, 2015, stood at ` 5,059 crore and the Net Worth stood at ` 9,902
crore. Profit after tax of the Bank for the year 2014-15 amounted to ` 726 crore.
Question. 6. What is Foreign Exchange Market? Discuss the
Participants in Foreign Exchange Markets?
Answer:Central banks are often involved in maintaining foreign reserve volumes in order to meet
certain economic goals. For example, ever since pegging its currency (the yuan) to the U.S. dollar,
Chinahas beenbuyingupmillionsof dollarsworthof U.S.Treasury bills in order to keep the yuan at
its target exchange rate. Central banks use the foreign exchange market to adjust their reserve
volumes.Theyhave extremely deep pockets, which allow them to have a significant impact on the
currency markets.
Banks and Other Financial Institutions: Along with central banks
Forex Market Participants
Consumers and Travelers

3.  Consumers may
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