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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

Q2. What is the need for export finance in India? Write a short note on
export financing facilities in India.
Answer. Need for export finance
Export finance refers to financial assistance extended by banks and other
financial institutions to businesses for the shipping of products outside a
country or region. Export financing enables MSMEs to expand its reach to a
global audience. Export financing is a major component of successful export
transactions. Exporters need finance for purchasing, processing, packaging and

Q3. As an exporter, what benefits you can get from Post shipment
finance scheme? Discuss the types of post shipment credits.
Answer. Post shipment finance scheme
Post shipment finance may be defined as a loan or advance granted by banks
to their exporter clients after the shipment of goods till the date of receipt of
payment from overseas buyer or credit opening bank. It is a short-term credit
provided by banks to exporters to meet their working

Q4. Write short notes on:
a) Export credit Guarantee Corporation
b) Foreign exchange risk
Answer. a. Export credit Guarantee Corporation
Almost all countries of the world have set up organizations in their countries to
provide credit risk insurance facilities to their exporters. In India, Government
of India has set up ECGC to cover export credit risk. In 1957, Government of
India set up the Export Risk Insurance Corporation of India. In 1964, the name
was changed to Export Credit and Guarantee Corporation Ltd. Once again

Q5. Discuss the payment options available to exporter and importer.
Answer. Payment options available to exporter and importer
There are 3 standard ways of payment methods in the export import trade
international trade market:
 Clean Payment
 Collection of Bills
 Letters of Credit L/c

Q6. What is custom duty? Discuss its types.
Answer. Custom duty

A tax levied on imports (and, sometimes, on exports) by the customs
authorities of a country to raise state revenue, and/or to protect domestic
industries from more efficient or predatory competitors from abroad.

Winter-2015
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