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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.
Discuss the importance of marketing research report in the overall marketing research process. Answer Marketing research report is the bridge between manager and researche
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Constructive Total Loss (CTL) : Unlike the actual total loss, CTL is not a physical loss and is not absolute. CTL may be defined as a total loss when the cost of saving, repai
PROCEDURE FOR MAKING A CLAIM : A claim will arise when any of the risks insured under the policy materialises. If an overseas buyer goes insolvent, the exporter becomes eligible f
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Documentary Requirements For movement of goods by air or by sea, the customs permission for shipment is given on a prescribed document, known as Shipping Bill. In other cases (
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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
Usage Segmentation Marketers are familiar with that the occasion or situation frequently determines what consumers will purchase or consume. For this reason they occasionally fo
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