Reg.

No:_________________

SANKARA COLLEGE OF SCIENCE AND COMMERCE

SARAVANAMPATTY, COIMBATORE – 35
MODEL EXAMINATION – DEC 2021
DEPARTMENT OF MBA
Subject Name: EXPORT IMPORT TRADE & DOCUMENTATION Time: 3 Hrs
Class: II MBA
Max Marks: 75
Section A (4 x 5 = 20)
(Answer any four of the following questions)
1. a) What is Letter of Credit. What is the procedure of payment through Letter of Credit
. OR
b). Write short notes on Certificate of Origin
2. a) Classify the export documents.
OR
b) Enumerate contents of Commercial Invoice.
3. a) Mention the objectives of the EXIM Bank of India.
OR
b) Write short notes on Special Economic Zones.
4. a) Enumerate the factors influencing Export Pricing.
OR
b) What is Exchange Fluctuation Risk and how it can be Minimized.
Section B (4 x 10 = 40)
(Answer any two questions)
7. Discuss the need for documentation in Export Import Trade.
8. Explain the types of L/C.
9. Explain the role of Commercial Banks in EXIM financing.
10. Explain the various international price quotations (INCO Terms).
11. Discuss the Foreign Trade Policy of India.

Section C (1 x 15 = 15)
(Compulsory question)
12. Special Economic Zones (SEZ) are now turning into large scale integrated manufacturing
complexes managed by public private partnership.

In 1986, the SEZ in Kerala, the Cochin Export Processing Zone was established at Kakkanad.
The Ministry of Commerce and Industry recently gave permission to set up India’s first port
based special economic zone in Kochi. Its opportunities lie in outsourcing manufacturing.
Developed countries confine this outsourcing to basic components. This manufacturing sector
demands higher skills and derives a higher degree of in-built margin. Manufacturing outsourcing
is also related to assembling. Assembling on the other hand is a semi-skilled job demanding a
higher proportion of low cost labour which is available well in developing countries.
The port based special economic zone at Kochi will focus on substantial employment and Kochi
will focus on substantial employment generation. The expertise built up in performing semi-
skilled function could be enhanced to attempt critical components and moved to higher value
markets.

The Kochi Port has earmarked 448 hectares for developing the SEZ in public-private partnership
format. It will perform major part of the terminal related activity of the International container
terminal. Being in the proximity of the container terminal, it will have the advantage of imports
at the lowest freight and minimal transit distance from the port to the manufacturing plants. This
would result in substantial cost savings.

Causes of failures of SEZ worldwide can be attributed to business strategies based on tax
holidays, imposition of rigid eligibility norms and poor labour relations. Also instances of initial
over-subsidy, unsatisfactory maintenance of common facilities and poor relations, spelling doom
for SEZ are seen as other causes of failures of SEZ units.

What is needed most for the success and growth of SEZ is the competitive advantage driven by
logistics. Kochi SEZ has in the favour the prospects of increased flight from the international
airport and developments in the e-software sector. Opportunities are plenty for Kochi port with
supportive projects coming up in its vicinity.

What factors would make economic zone at Kochi a viable project?

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