How does an export–import bank work? Who ultimately pays for the services of an export–import bank?
What will be an ideal response?
Export-import banks, like the Export–Import Bank of the United States, are usually independent government corporations involved in financing and facilitating of the exports of the country. Export-import banks try not to compete with private-sector lenders. Rather, they provide export financing products that private-sector lenders do not offer. For example, The U.S. Ex-Im Bank assumes credit risks and country risks that the private sector is unwilling to accept. It also provides working capital guarantees that help exporters with their financing prior to their shipping products abroad. In addition, it provides export credit insurance and offers loan guarantees and direct loans to importers of U.S. products.
You might also like to view...
How should you conclude each interview with an expert?
Inform the expert that you will be calling him or her later to verify points. Express your appreciation and ask for permission to telephone later to verify points. Ask a lot of open-ended questions in the last five minutes.
Which of the following is a major drawback of ethnocentric staffing?
A) high costs of relocating managers B) loss of control over host-country operations C) loss of control over home-country operations D) difficulty in the transfer of special know-how between branches