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MGBIB-20403 Roll No ... .... ... .... .

MASTER OF BUSINESS ADMINISTRATION

FOURTH SEMESTER END TERM EXAMINATION:

MAY.:.. 2010

RISK AND I~SURANCE IN

INTERNATIONAL TRADE

Time: 3 Hrs. Maximum Marks : 60

'
SECTION- A (24 Marks)
Attempt any 4 questions.
Each question carries 6 .marks.

1. Define the term Risk and explain the h~man attitude

' and· response to risk.

· 2. Explain express warranties and implied warranties in

insurance policies.

3. What are different methods of risk financing and their

differentiating features ?

4. Explain different methods of credit insurance.

5. Describe important distinctions between forward

contracts and futures.

· P.T .O.
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MGBIB-20403 2

SECTION B (20 Marks)

Attempt any two questions .
Each question carries 10 marks .

6. Explain the different risk management techniques,

highlighting the differentiating features.

7. You are appointed as a Branch Manager of a 100%

export oriented cell phone manufactudng unit. You ·
~ave been instructed by your boss to evolve a .risk
management process for effecting adequate insurance
to the stocks and stores in the organization. Explain
the· measures you would take to accomplish the
assignment.

8. What are the main features of a standard . policy

of ECGC and what p,recautions -the exporter has to
take for safeguarding goods before and ' after making
claim.

SECTION- C (16 Marks)

(Compulsory)

9. An exporter is sanctioned a limit of Rs. 2 crores which

is the Credit Limit for tlie bank under WTPCG. The
position of account is as follows :

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MGBIB-20403 3
1st May 2010 -Outstanding Packing' Credit = Rs. 1
crore.

2nd May 2010- Bank Negotiates a Bill of US$

100000- @ Rs. 50-

3rd May 2010 -The Exporter Applies for Preshipnient

Credit of Rs. 100,0000- which is
granted on 4th May 2010.

1Oth May 2010 - Exporter Submits Documents of Rs. 1

crore which are sent for Collection
& Realised on 25.5.2010.

24th May 2010 -The Exporter applied for Packing

Credit Loan of Rs. 50 Lacs which
was granted on 1st June, 2010.

Questions :

(a) Prepare the Books of Account of the Exporter?

(b) Calculate Premium @ 0.10%. The Bank: ECGC

Share in 60:40 Ratio ?

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