Explain the pre-shipment stage of export procedure.

1.	Explain the pre-shipment stage of export procedure.
Answer» 1. Receipt of Order : When the exporter receives an order he has to check the details of the order. He also check the restriction of import in the importer’s country. 2. Letter of Credit : The exporter has to obtain a letter of credit from the importer, which is used to clear the foreign exchanges and other restrictions. 3. Pre-shipment Finance : The exporter has to meet his working capital needs and for that he has to obtain the preshipment finance from his bankers. 4. Production of goods : If the exporter is a manufacturer, then he has to produce the goods according to the order placed by the importer, otherwise he has get the necessary goods arranged from his suppliers.

Answer»

1. Receipt of Order : When the exporter receives an order he has to check the details of the order. He also check the restriction of import in the importer’s country.

2. Letter of Credit : The exporter has to obtain a letter of credit from the importer, which is used to clear the foreign exchanges and other restrictions.

3. Pre-shipment Finance : The exporter has to meet his working capital needs and for that he has to obtain the preshipment finance from his bankers.

4. Production of goods : If the exporter is a manufacturer, then he has to produce the goods according to the order placed by the importer, otherwise he has get the necessary goods arranged from his suppliers.

Discussion

No Comment Found

Related InterviewSolutions

Classify the trade taking place between the following regions:(1) Maharashtra and Punjab (2) India and Japan (3) Lasalgaon and Pune (4) China and Canada (5) India and European Union
Study the following case/situation and express your opinion:Tata have opened CROMA store in different locations. These stores sell consumers electronic items.1.Name these type of retail trade?2. Which type of retailer are they?
Justify the following statement:Cheap Jacks are not reliable and dependable.
Explain the following term /concept:Online Retail Trade.
State True or False(i) Customers cannot bargain in one price shop.(ii) Letter of Credit is required for obtaining export license.(iii) Buying goods from other country is known as export trade.(iv) Maintaining high quality is necessary to sustain in export business.
Name the stages involved in export trade.
Define Retail Trade.
Who creates link between producers and consumers?
Explain the following terms /concept.Retail Trade.
State True or False(i) Wholesaler keeps large stock of goods.(ii) Wholesaler deals in small quantity.(iii) A retailer has no direct contact with consumers.(iv) Super market shops offer home delivery facilities to customer.(v) Departmental store located out of the city.