...everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major categories of financial institutions and their roles in the financial system. Types Of Financial Institutions And Their Roles Commercial Banks Commercial banks accept deposits and provide security and convenience to their customers. Part of the original purpose of banks was to offer customers safe keeping for their money. By keeping physical cash at home or in a wallet, there are risks of loss due to theft and accidents, not to mention the loss of possible income from interest. With banks, consumers no longer need to keep large amounts of currency on hand; transactions can be handled with checks, debit cards or credit cards, instead. Commercial banks also make loans that individuals and businesses use to buy goods or expand business operations, which in turn leads to more deposited funds that make their way to banks. If banks can lend money at a higher interest rate than they have to pay for funds and operating costs, they make money. Banks also serve often under-appreciated roles as payment agents within a country and between nations. Not only do banks issue debit cards that allow account holders to pay for goods with the swipe of a card, they can also arrange wire transfers with other institutions. Banks essentially underwrite financial transactions...
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...Hinduja Group Quick Facts: Headquarters: London, United Kingdom Founded: 1914 Subsidiaries: Ashok Leyland, Hinduja Foundries, Ashok Leyland Defence Systems Founder: Parmanand Deepchand Hinduja Chairman: S P Hinduja Number of employees: 72, 000 The Hinduja Group is a multi-billion dollar, transnational conglomerate. The Group was founded by Shri P.D. Hinduja in 1914 whose credo was "My duty is to work so that I can give". Merchant Banking and Trade were the twin pillars of the business and the Group remained headquartered in Iran, until 1979 when it moved to Europe. The Group's activities span across three core areas: Investment Banking, International Trading and Global Investments. It also supports charitable and philanthropic activities across the world through the Hinduja Foundation. As part of its Global investments, the Group owns businesses in Automotive, Information Technology, Media, Entertainment & Communications, Banking & Finance Services, Infrastructure Project Development, Oil and Gas, Power, Real Estate, Trading and Healthcare. With operations across 37 countries, the Group employs over 72,000 people worldwide. Business Philosophy and Values * Firm believers in traditional family values, the Hindujas have all along striven to inculcate the family concept in their business enterprises. Every member of the Group is encouraged to practice the Vedic principles of work: 'Service with devotion' and 'willingness to see fulfilment of one's self-interest...
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...rather than with money. A monetary valuation can however be used in counter trade for accounting purposes. In dealings between sovereign states, the term bilateral trade is used. OR "Any transaction involving exchange of goods or service for something of equal value." Types of countertrade There are five main variants of countertrade: * Barter: Exchange of goods or services directly for other goods or services without the use of money as means of purchase or payment. * Switch trading: Practice in which one company sells to another its obligation to make a purchase in a given country. * Counter purchase: Sale of goods and services to one company in other country by a company that promises to make a future purchase of a specific product from the same company in that country. * Buyback: occurs when a firm builds a plant in a country - or supplies technology, equipment, training, or other services to the country and agrees to take a certain percentage of the plant's output as partial payment for the contract. * Offset: Agreement that a company will offset a hard - currency purchase of an unspecified product from that nation in the future. Agreement by one nation to buy a product from another, subject to the purchase of some or all of the components and raw materials from the buyer of the finished product, or the assembly of such product in the buyer nation. * Compensation trade: Compensation trade is a form of barter in which one of the flows is partly in goods...
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...Chapter 8: Institutions and Procedures in Secondary Markets A. Exchanges and Floor Markets The Securities and Exchange Act of 1934 defined an exchange to be: any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of securities or for otherwise performing with respect to securities the functions commonly performed by a stock exchange as that term is generally understood, and includes the market place and the market facilities maintained by such exchange. An exchange is typically a physical or virtual meeting place drawing together brokers, dealers and traders to facilitate the buying and selling of securities. Thus, exchanges include the floorbased markets as well as many virtual meeting sites and screen-based systems provided by Electronic Communications Networks (ECNs). In the United States and most other countries, exchange transactions are executed through some type of auction process. Exchanges in the United States are intended to provide for orderly, liquid and continuous markets for the securities they trade. A continuous market provides for transactions that can be executed at any time for a price that might be expected to differ little from the prior transaction price for the same security. In addition, exchanges traditionally served as self-regulatory organizations (SROs) for their members, regulating and policing their...
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...assistance (mostly financial) that was asked for, I have, overtime, come to view non-market incentives like subsidies, grants and tariffs from a mind-set that I have found moulded in their company. I look upon my parents as really great protagonists of market-economy without undermining their sense of sympathy and concern for the hapless lot around them in that country, they proudly refer to as India. They always made a distinction between who deserved and who did not deserve the favour that has been asked for. And also, they were particular to find out when, in what form, how much and for how long the assistance, if any, was to be there. Strangely, even to day, they remorsefully recall the few instances of having wasted their scarce productive resources on individuals who, they later-on found, never wanted to be on their own. But they did learn a lesson from these experiences. I have grown in such family environment of respect for merit, hard work and self-pride. It is endowed with this sense that I intend to ponder over the Boeing-Airbus subsidy-related trade-rift and comment on the perceptions, policies, arguments and counter-arguments of the two sides and their respective governments in respect of the basic issues inherent in this controversy. Let me first summarily describe the facts of this dispute, and the classical dichotomous roles of the governments, on the two sides. History of trade dispute between Boeing and Airbus: An overview Until 1980, US commercial aircraft industry...
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...assistance (mostly financial) that was asked for, I have, overtime, come to view non-market incentives like subsidies, grants and tariffs from a mind-set that I have found moulded in their company. I look upon my parents as really great protagonists of market-economy without undermining their sense of sympathy and concern for the hapless lot around them in that country, they proudly refer to as India. They always made a distinction between who deserved and who did not deserve the favour that has been asked for. And also, they were particular to find out when, in what form, how much and for how long the assistance, if any, was to be there. Strangely, even to day, they remorsefully recall the few instances of having wasted their scarce productive resources on individuals who, they later-on found, never wanted to be on their own. But they did learn a lesson from these experiences. I have grown in such family environment of respect for merit, hard work and self-pride. It is endowed with this sense that I intend to ponder over the Boeing-Airbus subsidy-related trade-rift and comment on the perceptions, policies, arguments and counter-arguments of the two sides and their respective governments in respect of the basic issues inherent in this controversy. Let me first summarily describe the facts of this dispute, and the classical dichotomous roles of the governments, on the two sides. History of trade dispute between Boeing and Airbus: An overview Until 1980, US commercial aircraft...
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...Business (Trade) Theories Objectives After reading this unit, you should be able to : • understand the analytical foundations of international business • be familiar with the international trade theories • explain the FDI approaches to international business. Structure 2.1 Foundations of International Business 2.2 International Trade Theories Theory of Mercantilism Theory of Absolute Cost Advantage Theory of Comparative Cost Advantage Heckscher-Ohlin Model Leonief Paradox 2.3 FDI Theories Market Imperfections Approach Product Life Cycle Approach Transaction Cost Approach The Eclectic Paradigm 2.4 Summary 2.5 Key Words 2.6 Self-assessment Questions 2.7 Further Readings 2.1 FOUNDATIONS OF INTERNATIONAL BUSINESS The analytical framework of international business is build around-the activities of MNEs enunciated by the process of internationalisation. The FDI on the part of an MNE attempts to overcome the obstructions to trade in foreign countries. The strategies relating to the functional areas, such as production, marketing, finance and price policies, are adopted by the MNEs in such a manner that an amicable relationship between home and host nations is created. Foreign direct investment can be distinguished from the other forms of international business, such as exporting, licencing, joint ventures and management contracts. Basically, it reacts to the restrictions in foreign trade, licensing...
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...countries in the region also joined this organization as follows; Brunei Darussalam in 1984, Vietnam in 1995, Laos and Myanmar (Burma) in 1997, and Cambodia in 1999. The ten-member organization is enhancing partnership, not only nations in the region, but also outside the region, especially with the United States (US). The relationship between ASEAN and the US has entered its fourth decade of partnership. Since the first engagement in 1977, both sides have experienced the ups and down of partnership. This relationship will become more significant as it broadens the sectors of partnership in the future. Initially, starting with economic and development cooperation, the enhanced relationships, with cooperation on politic, regional security, counter terrorism and transnational crimes, has achieved a new era of “comprehensive partnership.” For the next decade, regional development in Asia Pacific will require the partnership to become more comprehensive. Several key issues in the region will become the major consideration for the next type of partnership. Some issues exist in Asia Pacific region. These are economic development, environmental issues, transnational crime and terrorism, legal cooperation, immigration, drugs, the rise of anti-Americanism, natural disaster and civil services. The US, as a key player in the region, also has an interest in maintaining her...
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...Introduction Nowadays, we live in a world that is converging in a fast-paced as a result of globalization with its active forces—leading to the tremendous rise in global capitalist economy. The demand for energy continue to sky-rocket in this modern world whilst major players in the world today; such as the United States, countries in the European Union and Japan are at alert in the sense that, China, one of the world fastest growing economy has been considered as a new competitor in the competition of securing a long term energy supplies around the globe. As China’s economy is rapidly growing and in other to acquire the needed resources to support its rapid growth, the government have taken a great step in focusing in other part of the world to secure oil which they deemed necessary coupled with other raw materials across the world. The rising economy of China was stated to have grown in an extraordinarily large number of nine (9) per cent per annum in the last twenty five (25) years whereas its consumption of energy has been said to have doubled to the extent that it outstripped the production of domestic energy. (Africa-practice report, 2007, p.2) Significantly, to catch up with the demand of its market, the economic powerhouse has channelled its attention to Africa. A continent widely known for its social and political unrest, though Chinese active involvement in Africa is a necessary mission in other for them to secure new export market for their manufactured goods, there...
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...WTO: World Trade Organization Objectives of WTO: Objectives of WTO Important objectives of WTO are mentioned below: (i) to implement the new world trade system as visualised in the Agreement; (ii) to promote World Trade in a manner that benefits every country; (iii) to ensure that developing countries secure a better balance in the sharing of the advantages resulting from the expansion of international trade corresponding to their developmental needs; (iv) to demolish all hurdles to an open world trading system and usher in international economic renaissance because the world trade is an effective instrument to foster economic growth; (v) to enhance competitiveness among all trading partners so as to benefit consumers and help in global integration; (vi) to increase the level of production and productivity with a view to ensuring level of employment in the world; (vii) to expand and utilize world resources to the best; (viii) to improve the level of living for the global population and speed up economic development of the member nations. Functions of WTO Functions of WTO The former GATT was not really an organisation; it was merely a legal arrangement. On the other hand, the WTO is a new international organisation set up as a permanent body. It is designed to play the role of a watchdog in the spheres of trade in goods, trade in services, foreign investment, intellectual property rights, etc. Article III has set out the following...
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...Introduction The stock market is the most active financial market in the U.S., which includes more than 5000 securities companies, trade associations, the stock exchange, investment banks and other institutions. The stock market can be divided into two level. The primary market including corporation, government agency, and investment bank sells securities to initial buyers, in other words called securities issue. The secondary market resell securities which have been previously issued in primary market. Secondary market can be organized in two ways. One ways is to organize exchanges, “where buyers and sellers of securities (or their agents or brokers) meet in one central location to conduct trades.”(Mishkin Eakins) The other way is to have an over-the-counter (OTC) market. The participants in OTC market trade through telecommunications networks such as telephone, email, and electronic system without a regular location. One of the importance network is the National Association of Securities Dealers Automated Quotation System (NASDAQ). Beyond those, Electronic Communications Networks (ECNs) have been challenging both the organized exchanges and NASDAQ for years. ECNs is a large quantity of stock trading electronic network that connect brokerages and traders so that they can trade directly without intermediaries. There are tens of billions of dollars of stock trading in the market every day. The management of the stock market of U.S. government is to regulate the issue and trading...
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...Foreign Exchange Markets Introduction Forex i.e. Foreign Exchange is the biggest financial market in the world. It is a source of income to many traders and banks of the world. It is not tied to any stock exchanges in the world. In fact, it is over-the-counter (OTC) market. It helps international trade and investment. It is the mechanism by which the currencies are related to each other. The values of different currencies are determined in the foreign exchange market. An individual or an institution, anybody can trade in currencies. The trade takes place in pairs i.e. one currency is purchased and other is sold in a simultaneous transaction. The rate at which the trade takes place, i.e. exchange rate is determined on the basis of interaction of market forces dealing with supply and demand. Features of Foreign Exchange Market As far as we have understood the concept of Foreign Exchange Market, we can point out some features of the foreign exchange market as under: 1. Medium of profit to an individual or an institution 2. The market does not rely on any one particular economy 3. High trading volumes 4. Most liquid market in the world 5. Long trading hours of 24 hours a day except on weekends 6. Different exchange rates for different currencies 7. It rarely involves the exchange of bank notes Operation of Foreign Exchange Market There are a thousands of securities traded on a stock market. But in the foreign exchange market, there are only...
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...Process International Competitive Marketing Strategies Market Selection Decisions and Entry Strategies Management of Exporting and Importing International Marketing Operations and Planning Product and Brand Decisions for International Marketing Service Strategies for International Marketing International Channels of Distribution and Logistics Management Pricing Decisions in International Markets Integrated International Marketing Communications International Business-To-Business Marketing Retail Internationalization and Marketing The Internet and International Marketing Ethics and International Marketing Index xix xxi xxiii xxiv 1 34 68 104 138 172 209 239 274 303 335 367 401 430 454 478 507 Contents List of figures List of tables List of mini case studies Acknowledgements 1 Introduction to International Marketing Introduction The nature of international marketing Contextual determinants of international marketing Historical development Definition of international marketing Relationship with other business fields A theoretical framework for international marketing Approaches to internationalization Factors causing internationalization The process of firms’ internationalization A holistic approach The motivation for firms to go international Trade theories and economic development Absolute advantage Comparative advantage The assumptions underlying the principles of comparative advantage International trade theories Classical trade theory The factor of proportion theory The product...
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...Causes of Globalization While it is truethat state ventures (or adventures) have at times driven the process, e.g. the colonial conquests, the globalization process has largely reflected market forces, specifically, the exploitation by large and smaller businesses in the world of benefits from trade in commodities, goods, services, capital, and even labor, and of opportunities for new investments and markets. The process of global economic integration was perpetrated at the behest of World War II, when the leaders of Britain and the US helped establishing the World Bank and International Monetary Fund in 1944 to promote a liberal, capitalist world to counter the shadows of Socialism and Marxism. The loans are granted by IMF and WB on the condition that the borrowing country will reduce the state's role in the economy, lower barriers to imports, remove restrictions on foreign investment, eliminate subsidies for local industries, reduce spending for social welfare, cut wages, devalue the currency, and emphasize production for export rather than for local consumption. Such conditions imposed laid the basic foundation to open economies to steer the mechanism of economic integration giving birth to the World Trade Organization. By mid 1950s Pakistan had become a favorite candidate for receiving the benefits pledged by President Truman, having joined the network of international defense treaties with the United States. It marked the beginning of...
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...(G-77) ______________________________________________________________________________ I. Examining International Terrorism: Developing a Joint Proposal for Counter-Terrorism Efforts The People’s Republic of China recognizes the need for the international community to adopt a comprehensive approach with cooperative measures in a multi-faceted method to combat global terrorism. The world has experienced decades of pointless terrorist attacks--in particular, the tragic loss of life on September 11th, 2001 in The United States. As proven throughout history, force alone cannot fundamentally resolve disputes and conflicts, and the national concept of security based on the use of force and the threat to use force can hardly bring about lasting peace in today’s world. Against this backdrop, an intensive cooperative security measure featuring dialogue and cooperation has emerged as the new global agenda. China’s security concept seeks common security against terrorism threats in developing nations through mutually-beneficial cooperation established through international cooperation against the use of terrorism. Terrorism is a result of complex array of political, economic, and social factors which cannot be resolved by military force alone. Only through strengthening of dialogue and cooperation between nations throughout the world can a fundamental approach to common security be achieved. Estimations show that global terrorist attacks had a significant limiting effect on growth within...
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