Page 229 - International Marketing

NPP

Export management is one of the key area to be considered in
the international trade. It is very important for an international
marketer, to have knowledge of export related documents, laws,
financial institutions, etc.

Export Management

Letter of Credit, Credit Risk Insurance with Reference to ECGC- Func-
tioning & Evaluation, Functioning of WTO, UNCTAD.

LETTER OF CREDIT

Q.36. Write an essay on: Role of letter of credit in Export- Import
transactions with its working mechanism and types.
OR
What is a Letter of Credit? Explain its different types and enu-
merate the document that a letter of credit must accompany.
[MBA (FT) 2008]
OR
Write a short note on: Letter of credit: Types and Mechanisms.
[MBA (FT) 2004, 05, 07]
OR
Write a short note on: Letter of Credit. [MBA (FT) 2006]
Introduction
Modern banks facilitate trade and commerce by rendering valuable
services to the business community. Apart from providing appropriate
mechanism for making payments arising out of trade transactions, the
banks gear the machinery of commerce, by acting as a useful link be-
tween the buyer and the seller. For these purposes, one of the important
services provided by banks are issuing letters of credit. The banking in-
[231]