Unique Ways for promoting international trade are given below:
1. Commercial Banks:
Commercial banks provide the following services to the exporters:
(a) Trade provide overdraft facilities to the exporter
ADVERTISEMENTS:
(b) They collect the bills of exchange on behalf of the exporters
(c) They provide finance for the procurement of machines to be used for producing export goods
(d) They collect information regarding the credit worthiness of the importers. Commercial banks purchase bills in foreign currency and grant loans shipping and other documents they also provide loans and advance for the movement of goods for export or for goods from abroad.
Image Source: colourbox.com
2. Export credit Guarantee Corporation:
ADVERTISEMENTS:
The ECGC was established in 1964 to promote India’s export by offering export credit, insurance and guarantee. Thus the corporation insures the exporters credit risk and guarantees payment to them. It also provides guarantees to the financing banks so that the latter may offer credit facilities to the exporters to expand their operations. The corporation provides the coverage against all risk whether it is commercial risk or political risk.
3. Exchange Banks:
Like commercial banks, exchange banks also play an important role in providing finance to those engaged in foreign trade. Exchange banks are those commercial banks which are incorporated in foreign countries and have their officers in India. Such banks finance the operations of importers and exporters.
4. Reserve Bank of India:
The Reserve Bank of India is the apex body in financing and control of foreign trade. In the sphere of providing finance to foreign trade the Reserve Bank performs the following functions:
(a) It undertakes purchase and sale of foreign exchange.
ADVERTISEMENTS:
(b) It performs the functions of exchange control to regulate the export trade.
(c) It refinances foreign trade through the commercial bank.
(d) It provides rediscounting facilities to the commercial banks by rediscounting the foreign bills.
5. Dock warrant:
Permission of the dock office to bring the goods on the dock is known as dock warrant.
6. Matis Receipt:
The receipt issued by the captain of the ship after accepting goods on board of the accepting ship is called matis receipt.
7. Bill of loading:
An agreement between the shipping company and the forwarding agent to carry goods to the destined part against the payment of freight is called bills of loading. It is semi-negotiable document.
8. Charter party:
An agreement between the shipping company and exporter hiring the entire ship or part thereof for specific period or voyage is called charter party.
9. Consular Invoice:
An invoice prepared by the consul (trade representative of importers country) stationed in the exporting country certifying the details and value of goods is known as consular invoice.