When an advance or a loan is granted, in another form of credit, it is provided by a bank to an exporter for the purpose of financing the purchase, processing, manufacturing or packaging of good before a shipment is called a pre-shipment credit. It works with the aim to provide access of credit to exporters at internationally competitive rates, dealers who are authorised have a permit to offer pre-shipment credit in foreign currency to exporters for domestic and imported inputs of exported goods.
Globalisation is gradually integrating countries from south to north pole, from east to west which has given the desired momentum to global trade. As soon as an organisation decided to give a taste of its product to the global customer, it has to chart out a clear strategic policy, adhering to a firm level strategic direction, to deal with competition on quality, quantity, price, distribution and support service.