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Risk as an Importer : The position is entirely opposite of what it is for the exporter. If the importer is billed in rupees, he does not stand to loss at all whether the foreign currency appreciates or depreciates. But considering the position of the Indian rupees as it is, no exporter would like to bill the Indian importer in rupees. Hence, the importer is always exposed to an exchange risk. Let us suppose that an Indian importer contracts to purchase equipment costing
$10,000 on January 1, expecting to pay Rs.3,50,000 in Indian currency. But if the value of dollar increases to Rs.36 on May 1 when the payment is due, he will have to pay Rs.3,60,000 and not Rs.3,50,000. Of course, there is an equal possibility of the dollar going down to Rs.34. In that case, the Indian importer will stand to gain. But the point is that he is exposed to a risk. The higher the appreciation of the dollar the higher is the risk to which he is exposed.
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Services Policy : When Indian firms render services to foreign parties, they would be exposed to payment risks similar to those involved in export of goods. Services Policy offers
Q: What are the different needs and motives of the consumer according to which a consumer buy the product? Ans: Needs : Requires can be explained in the following manner:
A review of 100 opera patrons was conducted. Respondents were asked how often they attended the symphony in a neighbouring city. The frequency of attendance was partitioned into
Responsibilities of the Insured : It is the duty of the insured or his agents, in all cases, to take such measures as may be reasonable to avert or minimise a loss. Further,
OBJECTIVES After studying this unit, you should be able to: 1. Explain the objectives of exchange control; 2. Describe the principal provisions of Foreign Exchange Regula
Competing demands for resources- Even though the above student would like to buy a pickup truck on her sixteenth birthday she would rather have a computer moreover has money for on
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Legal Framework : Section 50 of the Indian Customs Act requires the exporter to file a declaration in a prescribed form and submit supporting documents to enable the customs autho
Export of Imported Goods: Goods imported may be exported in the same or substantially the same form, without a licence provided they are not under the Negative Lists. Export of su
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