Page 247 - International Marketing

NPP

BRILLIANT'S Export Management 249

2. Insurance Cover for Buyer's Credit and Lines of Credit: Finan-
cial Institutions in India have started direct lending to buyers or financial
institutions in developing countries for importing machinery and equip-
ment from India. This sort of financing facilitates immediate payment to
exporters and frees them from the problem of credit management. ECGC
has evolved this scheme to protect financial institutions in India which in
extent to export credit to overseas buyers or institutions.
3. Overseas Investment Insurance: With the increasing exports of
capital goods and turnkey projects from India, the involvement of export-
ers in capital anticipation in overseas projects has assumed importance.
ECGC has evolved this scheme to provide protection for such investment.
Normally the insurance cover is for 15 years. 
WORLD TRADE ORGANIZATION (WTO)
Q.38. Write on essay on: W.T.O.- Contribution, structure and
working. [MBA-2011]
OR
Highlight various aspects of WTO in International Trade.
OR
Write short note on: Impact of WTO on Indian business.
Introduction

The Uruguay Round of GATT negotiations concluded on April 15, 1994
at Marrakesh,Morocco, India along with 123 Minutes besides the EC coun-
tries signed the Final Act in corporating the Eighth round of multilateral
trade negotiations. The final Act consists of- the WTO Agreement which
covers, the formation of the organization and the rules governing its work-
ing and (2) the Ministerial decisions and declarations which contain the
important agreements covering trade goods, services, intellectual prop-
erty and pluriliteral trade. They also contain the dispute settlement rules
and trade policy review system. The WTO Agreement is in fact the Uru-
guay Round Agreements whereby the original GATT is now a part of the
WTO Agreement which came into force from January 1, 1995.
The Nature of WTO
The WTO is the successor to the GATT, the GATT was a forum where
the member countries met from time to time to discuss and solve world
trade problems. But the WTO is a properly established permanent world
trade organization. It has a legal status and enjoys privileges and immuni-
ties on the same footing as the IMF and the World Bank. It includes.
(i) the GATT as modified by the Uruguay Round.
(ii) all agreements and arrangements concluded under the GATT, and