This document provides information about an assignment for an export-import finance course. It includes 6 questions about topics like the role of EXIM Bank in promoting foreign trade, pre-shipment finance mechanisms, trade financing schemes, risk coverage under ECGC policies, import finance methods and financing schemes, and participants in foreign exchange markets. Students are asked to answer each question in approximately 400 words. The assignment is worth 60 marks total and answers are to be emailed to subjects4u@gmail.com.

1. Spring-2016
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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

2. 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 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
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

3. 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
Get solved assignments at nominal price of Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490