This document provides information about an assignment for the Fall 2014 semester. It lists the subject code and name as IB0018 - Export-Import Finance. It provides instructions to answer all questions and notes the expected word count for longer answers. It then lists 6 questions related to export-import finance, including discussing the importance of exports for India, export financing facilities, post-shipment finance schemes, letters of credit, foreign exchange risk exposure, features of the forex market, and types of custom duties. Students are instructed to send their semester and specialization details to a provided email or call a phone number for fully solved assignments.

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ASSIGNMENT
DRIVE FALL 2014
PROGRAM MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4)
PGDIB (SEM 2)
SUBJECT CODE & NAME IB0018 – Export-Import Finance
SEMESTER 4
BK ID B1910
CREDITS 4
MARKS 60
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.
1 . Discuss the importance of exports for India. How do commercial banks assist in exports?
Answer : Exports of a country play an important role in the economy. A healthy balance, a
sustainable development with trade and foreign exchange reserves to maintain the country's export
growth should be a constant and high rate. Exports as a whole affect the industrial environment. To
compete internationally, the industry standard for quality products, competitive price, good
packaging, etc, which is important for overall industry. For export as a national priority for
government and private sectors recognized by all agencies to export, export growth is to maintain
high rates. Partnership between public and
2 What is the need for export finance in India? Write a short note on export financing facilities in
India.
Answer : Need for export finance in India
Trade Finance is a specific topic within the financial services industry. It's much different, for
example, than commercial lending, mortgage lending or insurance. A product is sold and shipped
overseas, therefore, it takes longer to get paid. Extra time and energy is required to make sure that
buyers are reliable and creditworthy. Also, foreign buyers - just like domestic buyers - prefer to delay
payment until they receive and resell the goods. Due diligence and careful financial management can
mean the difference between profit and loss on
3 As an exporter, what benefits you can get from Post shipment finance scheme? Discuss the
types of post shipment credits.

2. Answer : Post shipment finance is provided to meet working capital requirements after the actual
shipment of goods. It bridges the financial gap between the date of shipment and actual receipt of
payment from overseas buyer thereof. Whereas the finance provided after shipment of goods is
called post-shipment finance.
4 Write short notes on:
a) Letter of credit
Answer : A letter of credit is a document issued by a financial institution or a similarly accredited
professional party. The letter assures payment to a seller of goods or services provided certain
documents have been presented to the bank.[1] "Letters of Credit" are documents that prove the
seller has performed the duties specified by an underlying contract (e.g., the sale of goods contract)
and the goods/services have been supplied as agreed. In return for these documents, the beneficiary
receives payment from the financial
b Types of foreign exchange risk exposure
Answer : Growth of international business has led to an increasing exposure to foreign exchange risk
for many companies. Foreign exchange dealing results in three major kinds of exposure including
transaction exposure, economic exposure and translation exposure. Many companies manage their
foreign exchange exposure by hedging it using complex financial instruments. Hedging involves
reducing the uncertainty related to cash flows resulting from positive foreign exchange exposure.
One way to hedge foreign exchange risk is to buy or sell currency at a predetermined future date
and price.
Transaction exposure
The transaction exposure component of the foreign exchange rates is also referred to as a short -
term economic exposure. This relates to the risk
5. What is forex market? Explain the unique features of forex market.
Answer : Continuous process of currency exchange is determined by a large variety of causes starting
from terms of payment for contracts, made by transnational corporations till receiving of bank credit
on lower interest rates.
A unique telecommunication network has been formed because of constant need of currency
exchange. It gives a possibility to million currency sellers and buyers to carry out swap twenty four
hours a day from any part of the word.
6 What is custom duty? Discuss its types.
Answer : n economics, a duty is a kind of tax, often associated with customs, levied by a state. The
term is often used to describe a tax on certain items purchased abroad.Properly, a duty differs from
a tax in being levied on specific commodities, financial transactions, estates, etc., and not on
individuals. Duties may be import duties, excise duties, stamp duties, death or succession duties,
etc.; but income tax levied on a person is not considered a duty.
Types of Customs Duties

3. Dear students get fully solved Fall 2014 assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601