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OBJECTIVES
After studying this unit, you should be able to:
1. Explain the meaning of exchange rate;
2. Describe various types of exchange risk;
3. Discuss the measurement of exchange risks; and
4. Explain the methods of dealing with foreign exchange risks.
Drawback Rates : Two types of drawback rates are available: 1) All Industry Rates: These are published in the form of notification by the government every year and are normal
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regression line drawn asY=C+1075x, where x was 2, and y was239, given that y intercept was 11
Prescribed Period: The amount representing the full export value of the goods exported shall be realised and be paid to the authorised dealer when it is due. The amount should be
EXPORT DECLARATION FORMS : All exports to which the requirement of declaration applies must be declared on appropriate forms. These forms are as follows: GR form (in duplicate)
Running Account Facility: The RBI has permitted banks to grant packing credit advances even without lodgement of LIC or firm order /contract under the scheme of Running Account Fa
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IDENTIFICATION AND MEASUREMENT OF EXCHANGE RISKS : In foreign trade, you may be either an exporter or an importer. Let us now examine what is the exchange risk to which an exporte
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