Exporting brings foreign currency into country,so governments encourage export trade by giving assistance and advantage to exporters. Companies often borrow money from banks to finance exporting. This money is called export credit. If guarantee is given to the bank by government agency it means the government carries the loss if the foreign buyer does not pay. It is a kind of insurance cover for the bank and the export company. Another form of government incentive or incentive is tax assistance.Every company must pay a proportion of earning to the government in the of tax