IGNOU| EXPORT PROCEDURES AND DOCUMENTATION (AED - 01)| SOLVED PAPER – (DECEMBER - 2022)| BDP| ENGLISH MEDIUM
BACHELOR'S DEGREE PROGRAMME
(BDP)
Term-End Examination
December - 2022
AED-01
EXPORT PROCEDURES AND DOCUMENTATION
Time: 2 hours
Maximum Marks: 50
Note: Answer any four questions, including question no. 7 which is compulsory.
1. "A reduction in trade deficit is possible either
by a deduction in imports or by an increase in exports." Discuss and
explain the importance of international trade. 5+7= 12
Ans:- Trade deficit occurs when a country imports more
than it exports. A country can reduce its trade deficit by: -
(i)
Promoting exports: This can be done by improving the productivity and
competitiveness of the domestic economy through investment in infrastructure,
technology and education.
(ii)
Reducing imports: This can be done through import substitution, currency devaluation,
implementing trade policies and promoting foreign investment.
(iii) Less
consumption and more saving: This may reduce imports and reduce the need to
borrow from abroad to pay for consumption.
Other ways
to reduce trade deficit include:-
(i) Depreciation
of exchange rate
(ii) Taxing
capital flows
(iii) To
improve the productivity and competitiveness of the domestic economy
International
trade is important because it allows countries to:-
(i) Expand
markets: Countries can access goods and services that may not be available
domestically.
(ii)
Improvement in standard of living: Trade can help in reducing poverty levels.
(iii) Obtain
goods and services: Countries can obtain goods and services which they would
otherwise be unable to produce themselves.
(iv)
Improvement in relations: Trade between nations can lead to improved relations
and better communication.
(v)
Competitive pricing: More competitive pricing may result in products becoming
cheaper for consumers.
International
trade may involve exchange of goods and services such as:-
Food, clothing,
spare parts, oil, jewellery, liquor, stocks, currencies, water, tourism,
banking, consulting, transportation.
There are
three types of international trade:-
(i) Import:
Buying goods from another country
(ii) Export: Selling
goods to other countries
(iii)
Entreport: It includes both import and export trade
2. (a) Describe various types of Bill of Lading. 6
Ans:- A
bill of lading (BOL) is a legal document between a shipping carrier and a
business stating that the carrier has received the goods being shipped.
There are
several types of bills of lading, including:-
(i) Carrier
Bill of Lading: States that delivery will be made to the person holding the
bill of lading.
(ii)
Surrender the Bill of Lading: Operates under the term “Import Documentary
Credit”.
(iii)
Multimodal bill of lading: Covers more than one mode of transfer, such as
ocean and rail or ocean and road.
(iv) Switch
Bill of Lading: Helps in conducting triangle shipments, where one
transaction may involve three parties located in three different countries.
Other types
of bills of lading include:-
(i) Order bill
of lading
(ii) blank
bill of lading
(iii) Short
form bill of lading
(iv) Clear the
previous bill of lading
(v) Charter
Party Bill of Lading
(b) How can
you create transferability in the Bill of Lading? Discuss with example. 6
Ans:- Bill of
Lading (BOL) is a transferable document of title which performs three main
functions:-
(i)
Receipt: Acknowledges that the goods have been loaded.
(ii)
Contract: Contains or evidences the terms of the contract of carriage.
(iii)
Title: Serves as a document of ownership of the goods.
The bill of
lading can be transferred to a third party through the consignee. This occurs
when the consignee (the buyer and financially responsible party) signs or
endorses the document and hands it over to the new consignee.
There are
many types of bills of lading:-
(i) Order
Bill of Lading: A common type of BOL which is negotiable and allows the
consignee to transfer his right to receive delivery to a third party.
(ii) Carrier
Bill of Lading: BOL enables delivery to the carrier
(iii)
Multimodal transportation document: A type of bill of lading that covers at
least two different modes of transportation, such as land or ocean.
Regardless of
the type of transportation, products shipped must be accompanied by a bill of
lading and signed by an authorized representative of the carrier, shipper, and
receiver.
As the carrier
of goods, the shipping company delivers cargo to the consignee or to the
consignee's order. This means that, if the bill of lading is marked 'to order'
XYZ Bank, the shipping company carrying the goods can deliver the goods to the
party whom XYZ Bank instructs to make delivery.
3. Explain various types of post-shipment finance available
to Indian exporters. 12
[COMING SOON]
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