Foreign Trade and Foreign Exchange

ISBN Number : 978-93-5273-132-9

Student Price : Rs.975

Student Dollar Price : 39$

Book Edition : Eighth

Year of Publication : 2023

No. Of Pages : 638

Book Weight :1016

About The Book

Foreign Trade plays a very important role in the economic development and sustenance of most of the nations. The fact that Foreign Trade grows much faster than the world output, implies that for many a dynamic enterprise, the potential market is not confined to the national frontiers. For the good number of corporates, the overseas market is not a secondary market, but the primary market. The large and expanding world market often offers greater growth and profit opportunities than the domestic market. Globalisation and advanced information technology alongwith adapted mindset and attitude of people brought paradigm shifts in foreign trade by erasing the boundaries among the countries, culture and industries. For many small and medium sized enterprises too, the overseas market is very important.

There are numerous changes in the Central Government Foreign Trade Policy, derivative market, external commercial borrowings, foreign direct investment and FPI. The capital account convertibility which was planned could not take place due to various reasons as discussed in this book. After demonestisation of higher denomination currency notes of Rs. 500 and Rs. 1,000, value of Rs. 15.4 lakh crores was scrapped by the announcement of the Prime Minister on 08-11-2016, the export market became low and GDP growth got affected. There had been 165 mergers and acquisitions in 2016 which were higher by 20% compared to year 2015 and 54% higher compared to 2015 to 2014.

Position of fiscal deficit in 2016-17 (April to Dec.) was totalling Rs. 5.01 lakh crores which was 93.9% of total projected deficit of 2016-17. All these things have been explained in this revised edition.


Contents :

1. Foreign Trade
2. Instruments of Foreign Trade
3. Import/Export Control and Foreign Trade Policy 2015-2020
4. Exchange Control in India
5. Import Finance (Documentary Credit)
6. Cross-Border Financing Export Finance : Pre-shipment
7. Cross-Border Banking Export Finance : Post-shipment
8. Export Promotion Incentives
9. Import/Export Guarantees
10. Foreign Remittances
11. Foreign Travel and Release of Exchange
12. Account of Foreign National/Firms/Companies and Rupee Accounts of Non-Residents Banks
13. Ordinary Non-Resident Rupee (NRO) / Accounts
14. Non – Resident ( External), EEFC and FCNR (Banks) Accounts
15. Blocked Accounts / Resident Foreign Currency Accounts
16. Investments in India by Non-Residents
17. Returns and Statements
18. Various Risk in Banking
19. Foreign Exchange
20. Commercial Rates of Exchange
21. Calculation of Exchange Rates
22. Derivatives Market (Forwards, Futures, Swaps and Options)
23. Futures, Option Forwards and Swaps
24. Extension / Cancellation of Forward Contracts
25. Exchange Position
26. International Financial Institutions
27. Diamond Exports and Exim Policy 2015-2020
28. Exchange Risk Management
29. Cost of Capital for Foreign Investments
30. Foreign Direct Investments, ECB and Other Sources of Capital Flow
31. Foreign Exchange Derivatives Market
32. Capital Account Convertibility's Possibility


I Uniform Customs and Practice for Documentary Credits - 600
II Documentary Credits for Electronic Presentation e-UCPDC-600
III List of Full-Fledged Authorised Dealers
IV List of Export Promotion Councils/Boards

About The Author

Shri O.P. Agarwal, post graduate in Commerce from the Vikram University, Ujjain in the year 1964 and obtained Bachelor`s Degree in Laws in 1971 from the Indore University (Madhya Pradesh). He has been a distinguished scholar since he passed the M.P. Higher Secondary Board, Bhopal examination in the first rank in the year 1959. While B.Com. was passed in the 7th rank in the year 1962. After obtaining educational qualifications, he joined Bank of Maharashtra in July 1971, and obtained the international Diploma in Banking from London (England) and became associate C.A.I.B. (London). He served the nationalised bank for 35 years and acquired the skill in banking rules and regulations, customer satisfaction and service, efficient administration of the branches and corporate services department at the central office of the bank.

He pioneered for perfect implementation of extensive quality work to the customers and colleges. He has been branch managers for 11 years, 4 years at regional and central office along with 7 years as Faculty in Bank of Maharashtra - Staff Training Centre, New Delhi.

All above practical experience, enabled him to put experience and research into book-form by writing books, for all bank employees for their better future and elevation, for subjects like internal promotion, C.A.I.I.B. and computer operation (in Hindi language) as early as in years between 1991 to 1994. After retirement from bank services, he had desired and wished to spread and share his knowledge and experience with new generation, who were aspiring for services in banking, business management, insurance and foreign exchange areas. Since 2005, he has to his credit - writing of over 50 books on subjects like Foreign Exchange, Banking and Finance, Banking and Insurance, Security Analysis and Investment Management, Financial Markets and Services, J.A.I.I.B. and C.A.I.I.B. reference books in multiple choice questions, in Hindi and English languages. Professional bankers and serving bankers should also get the opportunity for updating the development in banking and finance subjects. He has written books, viz., Modern Banking of India, Credit Appraisal (in Hindi), Banks` Interview, How to Face Bank Interviews? (in Hindi), Quantitative and Financial Decision Analysis, Retail Banking, International Financial Management and Practical Letters Writing (in Hindi) for the benefit of entire fraternity. Writing of books is a passion for Mr. Agarwal.

He has been Guest Faculty since the year 2001 to date for various bank`s staff training colleges in Mumbai as well as for the largest and the first asset reconstruction company ARCIL, CBD Belapur, New Mumbai for their officers` training programmes.

B.K. Chaudhuri was born on 1st May 1925, in a well-to-do family at Madh island, Mumbai. He was a freedom fighter, took part in the freedom struggle and went to jail in 1942. Later in the year 1974, he was honoured by the chief minister of Mumbai, Mr. Vasantdada Patil with a Tamrapatra`. He worked as a teacher in the St. Xaviers High School, Vileparle, till he retired. He was an accomplished artist; his speciality being of oil paintings on canvas wood with his bare fingers. He Kept himself occupied with his hobbies for writing plays in Marathi. He also staged some Marathi dramas like `Jevha Avtarli Nari`. Life is Enchanting was his first English novel, was very dear to him till his last breath on 5/11/2011. He was into fitness and he continued with his exercise regime right upto his death.

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