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.
Discuss the process involved in securing for exports.
Q 5.
What is Advance License Scheme?
Q 6.
What was the objective of MIGA?
Q 7.
What is Shipping Bill?
Q 8.
Name the most important document used in import.
Q 9.
Name the most important document of export.
Q 10.
Write a detailed note on features, structure, objectives and functioning of WTO.
Q 11.
List out major affiliated bodies of the World Bank.
Q 12.
Write short notes on the following:
- UNCTAD
- MIGA
- World Bank
- ITPO
- IMF
Q 13.
How many Export Promotion Councils are there in India?
Q 14.
What is the main objective of WTO?
Q 15.
When was State Trading Corporation established?
Q 16.
Why is export promotion necessary?
Q 17.
Define Export Processing Zones.
Q 18.
What is pre-shipment finance?
Q 19.
Explain the meaning of Mate's Receipt.
Q 20.
Why is it necessary for an export firm to go in for pre-shipment inspection?
Q 21.
Explain briefly the process of customs clearance of export goods.
Q 22.
Santa Cruz is famous for which exclusive items?
Q 23.
Explain the term FOB.
Q 24.
Write short note on Indent House and Dock Challan.
Q 25.
Write the full form of ICSID.
Q 26.
Explain different organizations involved in export promotion or facilitating foreign trade.
Q 27.
Discuss the principal documents used in exporting.
Q 28.
What is a Letter of Credit? Why does an exporter need this document?
Q 29.
Why did WTO establish? What are its objectives?
Q 30.
List and explain various incentives and schemes that the government has evolved for promoting the country's foreign trade.
Q 31.
Name the certificate which is used for ensuring timely payment.
Q 32.
Discuss the formalities involved in getting an export license.
Q 33.
Which agency of World Bank provides loan to private sector of developing countries?
Q 34.
Discuss the principal documents used in exporting.
Q 35.
Who is a clearing agent?
Q 36.
Explain the steps of export procedure.
Q 37.
What is IEC number?
Q 38.
What is Performa Invoice?
Q 39.
When was IIFT formed?
Q 40.
Explain the term FOB.
Q 41.
What is Bill of Lading? How does it differ from bill of entry?
Q 42.
How many regional and international offices does ITPO have?
Q 43.
What is IMF? Discuss its .various objectives and functions.
Q 44.
What is World Bank? Discuss its various objectives and role of its affiliated agencies.
Q 45.
Who is a clearing agent?
Q 46.
Define Mate's Receipt.
Q 47.
What is the purpose of pre-shipment finance?
Q 48.
How many Commodity Boards are there in India?
Q 49.
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 50.
Give full form of EPZ and SEZ.
