Module: | MODULE A: INTERNATIONAL BANKING
Q174: Consider the following statements regarding the advisory and promotional services of the Export-Import Bank of India:
1. The Bank offers advisory services to Indian exporters to help them evaluate international commercial and political risks.
2. The Bank provides marketing advisory services that assist Indian companies in identifying overseas partners and structuring joint ventures.
3. The advisory services of the Bank are mandated by the Ministry of Finance to be provided exclusively to Central Public Sector Enterprises.
Which of the statements given above is or are INCORRECT?
2. The Bank provides marketing advisory services that assist Indian companies in identifying overseas partners and structuring joint ventures.
3. The advisory services of the Bank are mandated by the Ministry of Finance to be provided exclusively to Central Public Sector Enterprises.
Which of the statements given above is or are INCORRECT?
✅ Correct Answer: C
🎯 Quick Answer:
Option C is correct because only statement 3 is incorrect.Structural Breakdown: These services encompass market research, country risk analysis, partner identification, and guidance on navigating complex foreign regulatory frameworks.
Statement 3 is incorrect because these advisory services are widely available to a broad spectrum of clients, including private sector entities, smaller enterprises, and commercial banks, not exclusively to Central Public Sector Enterprises.
Historical Context: As global trade became increasingly complex with shifting geopolitical alliances and non-tariff barriers, the Bank established dedicated research groups to provide actionable intelligence to Indian exporters who lacked the resources to conduct independent global market studies.
Causal Reasoning: The causal necessity for providing these advisory services is that information asymmetry is a major barrier to international trade.
By acting as an intelligence hub, the Bank significantly lowers the entry barriers for Indian firms exploring uncharted international markets.