Read the following case carefully and answer the questions: Paila is a well known shoe manufacturing company located in Kathmandu. Currently 400 employees are engaged in this company. It imports raw…

Read the following case carefully and answer the questions: Paila is a well known shoe manufacturing company located in Kathmandu. Currently 400 employees are engaged in this company. It imports raw material from Pakistan. It has 10 foreign technicians from different countries. These technicians take salaries in their home currencies: dollar, yen, and pound and Indian rupees. It has imported modern machine form New Zealand which is used in making shoes. Its long-term capital is Rs 1,000 million which comprises Rs 400 million of equity and Rs 600 million of loans from bank. All employees receive their salary from bank. Most of the products are exported. Its major markets are Japan, India and America. However, about 20 percent of the shoes produced by the company are sold in major cities in the country. Company has central billing system, that is, it has no regional offices to collect the cash from customers. a. What types of payment problems and financing problems would this company have to bear if there were no banking system? b. Do you think that company would have to face problem in export and import if there were no banking system? How does a bank help to manage this problem? c. Why banking system is needed for the development of economy? Explain. d. Explain the importance of banking law and regulations.