EXPORT IMPORT FINANCE

Paper Code: 
IBG-317
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcome (COs):

               Course Outcomes

Learning and teaching strategies

Assessment Strategies

On completion of this course, the students will be able to:

CO 114: Understand the meaning and methods of export finance and will also be able to differentiate between pre-shipment and post-shipment finance.

CO 115: Identify the factors affecting export payment and to understand the various methods of export payment.
CO 116: Gain understanding about the meaning of import financing and various exchange regulations relating to import finance along with the role of Acceptance House and Discount House.

CO 117: Infer various types of foreign exchange risk and student will also be able to identify various strategies used to reduce foreign exchange risk.

CO 118: Acquaint themselves with various types of export financing and institutional support available from ECGC and EXIM Bank. 

 

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, Reading assignments.

Learning activities for the students:

Self-learning assignments, Effective questions,

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects

 

9.00
Unit I: 
Export Finance:

Meaning, Methods, features & types of Pre-shipment finance, features & types of Post-shipment finance, Difference between Pre-shipment and Post shipment finance. Deferred Credit.

 

9.00
Unit II: 
Export Payment terms:

Factors affecting export Payment, Methods of Payment-Payment in advance, Open account, consignment stock Payment, Letter of Credit-Types, Parties, Procedures, Documentary Bills-Documents against acceptance(D/A),Documents against Payments (D/P), Difference between (D/P) and (D/A).

9.00
Unit III: 
Import Financing:

Meaning, procedure, Exchange regulations relating to Import Finance, Documentary Credit Rediscounting of export Bills, Role of Acceptance House and Discount House.

9.00
Unit IV: 
Managing foreign exchange risk:

Transaction, Translation, Economic Risk, Tactics and Strategies to reduce foreign exchange risk, Transfer Pricing.

9.00
Unit V: 
Export Financing and Institutional Support:

 Short term credit, Long term credit, factoring Export Credit and Guarantee Corporation of India (ECGC),  Export Import Bank of India (EXIM)-  Objectives and Functions.

 

Essential Readings: 
  • Khushpat S. Jain, “Export Import Procedures & Documentation”, Himalaya Publishing House, Mumbai.
  • Choudhary B K & Agarwal O P., “Foreign trade and Foreign exchange”, Himalya Publishing house, New Delhi.

 

 

References: 

SUGGESTED READINGS:

  • Cherunilam Francis “International Business”, Tata McGraw-Hill Publishing Company Limited, New Delhi.

E-RESOURCES:

  • Trade Finance Explained, An SME Guide for Importers and Exporters

https://www.tradefinanceglobal.com/wp-content/uploads/2020/10/SME-Trade-Finance-Guide-for-Importers-and-Exporters_TFG.pdf

JOURNALS:

  • Global Business Review , http:// sagepub.com
  • Foreign Trade Review, http:// sagepub.com

 

ACADEMIC YEAR: 
2022-2023
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