Question:
What is a Letter of Credit? Why does an exporter need this document?
Answer:
Letter of Credit is issued by the bank of an importer guaranteeing to honour a draft of a certain amount drawn on it by the exporter. It is an important document because, in international transactions, there is always a risk of the importer defaulting on payment once the goods are received. Thus, to minimise the risk of such defaults, the exporter often demands a letter of credit. A letter of credit enables the exporter to assess the credit worthiness of the importer. It is the most appropriate and secure method of payment for settling an international transaction.
International Business II
Q 1.
List various affiliated bodies of World Bank.
Q 2.
Name any two WTO Agreements.
Q 3.
Explain the meaning of the following documents used in connection with import transactions
- Trade enquiry,
- Import license,
- Shipment of advice,
- Import general manifest,
- Bill of entry.
Q 4.
What is Advance License Scheme?
Q 5.
Discuss the process involved in securing for exports.
Q 6.
What is Shipping Bill?
Q 7.
Name the most important document of export.
Q 8.
What was the objective of MIGA?
Q 9.
List out major affiliated bodies of the World Bank.
Q 10.
Write short notes on the following:
- UNCTAD
- MIGA
- World Bank
- ITPO
- IMF
Q 11.
Write a detailed note on features, structure, objectives and functioning of WTO.
Q 12.
What is the main objective of WTO?
Q 13.
Define Export Processing Zones.
Q 14.
Why is export promotion necessary?
Q 15.
How many Export Promotion Councils are there in India?
Q 16.
Name the most important document used in import.
Q 17.
Why is it necessary for an export firm to go in for pre-shipment inspection?
Q 18.
When was State Trading Corporation established?
Q 19.
Discuss the principal documents used in exporting.
Q 20.
How many regional and international offices does ITPO have?
Q 21.
Santa Cruz is famous for which exclusive items?
Q 22.
What is pre-shipment finance?
Q 23.
Explain briefly the process of customs clearance of export goods.
Q 24.
What is IMF? Discuss its .various objectives and functions.
Q 25.
Write the full form of ICSID.
Q 26.
Give full form of EPZ and SEZ.
Q 27.
Who is a clearing agent?
Q 28.
Name the certificate which is used for ensuring timely payment.
Q 29.
How many Commodity Boards are there in India?
Q 30.
Write short note on Indent House and Dock Challan.
Q 31.
Explain different organizations involved in export promotion or facilitating foreign trade.
Q 32.
When was IIFT formed?
Q 33.
Discuss the formalities involved in getting an export license.
Q 34.
Explain the term FOB.
Q 35.
Which agency of World Bank provides loan to private sector of developing countries?
Q 36.
What is IEC number?
Q 37.
Define Mate's Receipt.
Q 38.
What is Performa Invoice?
Q 39.
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.
Q 40.
Explain the steps of export procedure.
Q 41.
Explain the meaning of Mate's Receipt.
Q 42.
Discuss the process involved in securing for exports.
Q 43.
Rekha Garments has received an order to export 2000 men's trousers to Swift Imports Ltd. located in Australia. Discuss the procedure that Rekha Garments would need to go through for executing the export order.
Q 44.
Explain the term FOB.
Q 45.
Write the full form of DTA.
Q 46.
What is Bill of Lading? How does it differ from bill of entry?
Q 47.
List and explain various incentives and schemes that the government has evolved for promoting the country's foreign trade.
Q 48.
Why did WTO establish? What are its objectives?
Q 49.
Who is a clearing agent?
Q 50.
Discuss the principal documents used in exporting.
