1.) Look up the Eximbank and describe what they do and who do they serve?
2.) We discussed Political Risk in class, but most banks utilize credit risk, ex. FICO score, etc. In Exim’s case they have a process for determining what degree of business they, as an agency, will cover in a foreign country depending on the risk of doing business in that foreign country. So, find that data on Exim’s website and use it to determine the following:
a.) What is the matrix used by Exim showcasing their three distinct time periods of financing for a foreign country? Explain the matrix and the three time periods.
b.) Provide Answers to the following: When can American companies NOT utilize Exim financing for these countries? Comoros, Angola, Burkina Faso, Laos, Pakistan, Nepal, and Sierra Leone.
Sample Solution