Export import system provides three basic functions. First, they help exporters meet officially supported foreign import competition. (When foreign governments subsidize their companies’ exports by offering buyers below-market, fixed-rate financings, exporters often find it difficult to offer financing that matches those subsidized rates.) Secondly, Export import system provides financing to foreign buyers when private lenders cannot or will not finance those export sales, even with the risks removed. Third, and perhaps their most important function, Export import system assume risks beyond those that can be assumed by private lenders. Export import system does not compete with private financial institutions. To the contrary, they enhance the ability of their country’s lenders to compete internationally. It should also be noted that they do not offer development assistance to other countries; other agencies typically fulfill this role
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SIGNIFICANCE OF EXPORT IMPORT SYSTEM IN INDIA
Dr. Kuldeep Singh, Dr. Rohtash Sharma 978-93-5747-998-1
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FIRST EDITION
Academic Book, Text Book
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