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Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
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Summer 2013
Master of Business Administration- MBA Semester 4
IB0018 – Export-Import Finance -4 Credits
(Book ID: B1145)
Assignment- 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.
Q1. Describe briefly the various terms of payment available to an exporter and importer. Explain
any one method in detail.
( terms of payment- 5 marks, any one in detail- 5 marks) 10 marks
Answer : Payment Collection Against Bills also known documentary collection as is a payment
method used in international trade all over the world by the exporter for the handling of documents
to the buyer's bank and also gives the banks necessary instructions indicating when and on what
conditions these documents can be released to the importer.
Collection Against Bills is published by International Chambers of Commerce (ICC), Paris, France. The
last updated issue of its rule was published on January 1, 1966 and is know as the URC 522.
Q2. A documentary letter of credit is considered to be the safest mode of payment. Discuss the
reasons for this. Explain the various types of L/C.
( reasons- 4 marks, types- 8 marks) 10 marks
Answer : A letter of credit is a document issued by a financial institution, or a similar party, assuring
payment to a seller of goods and/or services provided certain documents have been presented to
the bank.These are documents that prove that the seller has performed the duties under an
underlying contract (e.g., sale of goods contract) and the goods (or services) have been supplied as
agreed. In return for these documents, the beneficiary receives payment from the financial
institution that issued the letter of credit.
Q3. Explain in brief the various forms for export declaration prescribed under FEMA?
( export declaration forms- 10 marks) 10 marks
Answer : The Foreign Exchange Regulation Rules, 1974 prescribe export declaration forms
called Exchange Control Declaration (GR) form, hereafter referred to as GR form, PP
Q4. What is Packing credit? What are the RBI guidelines regarding packing credit finance?
( meaning- 4 marks, RBI guidelines- 6 marks) 10 marks
Answer : PACKING CREDIT is any loan or advance granted or any other credit provided by a bank to
an exporter for financing the purchase, processing, manufacturing or packing of goods prior to
shipment, on the basis of letter of credit opened in his favor or in favor of some other person, by an
overseas buyer or a confirmed and irrevocable order for the export of goods from the producing
country or any other evidence of an order for
Q5. What is the purpose of setting EXIM Bank of India? Describe the lending programme by EXIM
bank for Export oriented units.
( Purpose-5 marks, lending programme for EOU- 5 marks) 10 marks
Answer : The EXIM Bank was set up in January 1982 with the main object of giving a boost to the
country’s export promotion drive and to pay for the increased imports. It took over the operations of
the International Finance Wing of the IDBI. It acts as the apex agency in coordinating the activities of
the other institutions engages in the financing of exports and imports of goods and services.
Q6. There are various innovative financing services provided to exporters by Banks and financial
institutions What are factoring and forfaiting? Discuss their benefits.
(meaning of factoring and forfaiting - 5 marks, benefits- 5 marks) 10 marks
Answer : Forfeiting and factoring are services in international market given to an exporter or seller.
Its main objective is to provide smooth cash flow to the sellers. The basic difference between the
forfeiting and factoring is that forfeiting is a long term receivables (over 90 days up to 5 years) while
factoring is a shorttermed receivables (
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
or
call us at -> 08263069601

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Ib0018 – export import finance

  • 1. Dear students get fully solved assignments Send your semester & Specialization name to our mail id -> help.mbaassignments@gmail.com or call us at -> 08263069601 Summer 2013 Master of Business Administration- MBA Semester 4 IB0018 – Export-Import Finance -4 Credits (Book ID: B1145) Assignment- 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. Q1. Describe briefly the various terms of payment available to an exporter and importer. Explain any one method in detail. ( terms of payment- 5 marks, any one in detail- 5 marks) 10 marks Answer : Payment Collection Against Bills also known documentary collection as is a payment method used in international trade all over the world by the exporter for the handling of documents to the buyer's bank and also gives the banks necessary instructions indicating when and on what conditions these documents can be released to the importer. Collection Against Bills is published by International Chambers of Commerce (ICC), Paris, France. The last updated issue of its rule was published on January 1, 1966 and is know as the URC 522. Q2. A documentary letter of credit is considered to be the safest mode of payment. Discuss the reasons for this. Explain the various types of L/C. ( reasons- 4 marks, types- 8 marks) 10 marks Answer : A letter of credit is a document issued by a financial institution, or a similar party, assuring payment to a seller of goods and/or services provided certain documents have been presented to the bank.These are documents that prove that the seller has performed the duties under an underlying contract (e.g., sale of goods contract) and the goods (or services) have been supplied as agreed. In return for these documents, the beneficiary receives payment from the financial institution that issued the letter of credit. Q3. Explain in brief the various forms for export declaration prescribed under FEMA? ( export declaration forms- 10 marks) 10 marks Answer : The Foreign Exchange Regulation Rules, 1974 prescribe export declaration forms called Exchange Control Declaration (GR) form, hereafter referred to as GR form, PP
  • 2. Q4. What is Packing credit? What are the RBI guidelines regarding packing credit finance? ( meaning- 4 marks, RBI guidelines- 6 marks) 10 marks Answer : PACKING CREDIT is any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of letter of credit opened in his favor or in favor of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods from the producing country or any other evidence of an order for Q5. What is the purpose of setting EXIM Bank of India? Describe the lending programme by EXIM bank for Export oriented units. ( Purpose-5 marks, lending programme for EOU- 5 marks) 10 marks Answer : The EXIM Bank was set up in January 1982 with the main object of giving a boost to the country’s export promotion drive and to pay for the increased imports. It took over the operations of the International Finance Wing of the IDBI. It acts as the apex agency in coordinating the activities of the other institutions engages in the financing of exports and imports of goods and services. Q6. There are various innovative financing services provided to exporters by Banks and financial institutions What are factoring and forfaiting? Discuss their benefits. (meaning of factoring and forfaiting - 5 marks, benefits- 5 marks) 10 marks Answer : Forfeiting and factoring are services in international market given to an exporter or seller. Its main objective is to provide smooth cash flow to the sellers. The basic difference between the forfeiting and factoring is that forfeiting is a long term receivables (over 90 days up to 5 years) while factoring is a shorttermed receivables ( Dear students get fully solved assignments Send your semester & Specialization name to our mail id -> help.mbaassignments@gmail.com or call us at -> 08263069601