Page 55 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

International Trade Procedures and Documentation

Notes 3.1.1 Time Benefits of Going International

When you own a business of any size, from the sole proprietorship to the multi-state company
with thousands of workers, there is an important decision to make as the company grows. Ask
yourself and your partners, if any, if it’s the right time to take the company international, which
begins by expanding your market to the consumers in at least one other country.
To create and build brand awareness in an international market, a company must have a 3-5 year
plan minimum.
As brand awareness is key to expanding the target market, this time invested will increase the
exposure the consumer has to your brand.
Well-established brands gain trust from consumers and the target market are more likely to
shop with your brand once they are familiar with it.

3.2 EXIM Business Plan and Strategy

Export-Import Bank of India has been one of the prime institutions that encourage project
exports from India. The bank offers wide-ranging services for enhancing the prospect of Indian
project exports. Exim Bank’s Overseas Investment Finance program gives a variety of facilities
for Indian reserves and acquirements overseas. The facilities consist of direct equity participation
by the bank in the overseas venture and non-funded activities by the overseas venture and loan
to the Indian companies for equity participation in the venture abroad. As part of Exim Bank’s
marketing Finance Program, the bank offers support to small and medium enterprises in their
export marketing efforts consisting of financing the soft expenditure linking to completion of
tactical and systematic export market development plans.

3.2.1 Export-Import Bank of India Objective

The primary objective of the Export-Import Bank of India is to provide financial assistance to
importers and exporters and function as the top financial institution. Some of the services of the
bank include: overseas investment finance, film finance, export credit, finance for export oriented
units and agricultural and SME finance.

Note In the period of 2005- 2006 the total amount of loan given out by the bank amounted
to 150,389 million, while this figure shot up to ` 220,760 million in the flowing year.

The Initiatives

Exim Bank of India has been the prime mover in encouraging project exports from India. The
Bank provides Indian project exporters with a comprehensive range of services to enhance the
prospect of their securing export contracts, particularly those funded by Multilateral Funding
Agencies like the World Bank, Asian Development Bank, African Development Bank and
European Bank for Reconstruction and Development.
The Bank extends lines of credit to overseas financial institutions, foreign governments and
their agencies, enabling them to finance imports of goods and services from India on deferred
credit terms. Exim Bank’s lines of Credit obviate credit risks for Indian exporters and are of
particular relevance to SME exporters.
The Bank’s Overseas Investment Finance programme offers a variety of facilities for Indian
investments and acquisitions overseas. The facilities include loan to Indian companies for equity

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