...been significant foreign investors for McDonald’s; some 1,100 French multinationals account for around 8 percent of the global stock of foreign direct investment Common law system is based on tradition, precedent, and custom. Tradition refers to a country’s legal history, precedent to cases that have come before the courts in the past, and custom to the ways in which laws are applied in specific situations. It differs from a civil law system which is based on a detailed set of laws organized into codes. When law courts interpret civil law, they do so with regard to these codes. Factor endowments are the extent to which a country is endowed with such resources as land, labor, and capital. A simple example of a factor endowment with respect to land would be the presence of natural resources such as oil. Countries with abundant oil tend to export oil, focusing internal resources toward producing the factor they have in quantity. Angola is an extreme example of such specialization: oil accounts for 98% of its exports or for instance, as China's labor force has grown more skilled, wages have risen and China has begun specializing in more complex manufactured goods. Local content requirement is a requirement that some specific fraction of a good be produced domestically. The requirement can be expressed either in physical terms (e.g., 75 percent of component parts for this product must be produced locally) or in value terms (e.g., 75 percent of the value of this product must be produced...
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...IQRA UNIVERSITY KARACHI CAMPUS Subject: Essentials of Islamic Finance Instructor Yousuf Ibnul Hasan Time Allowed: 60 Minutes Maximum Marks: 40. ------------------------------------------------- Department of Business Administration Quiz No: 2 fall 2013 Name of student:______________________________ ID No: _________ Class Day __________Timing _______________ ____Marks _________ No cutting, rubbing or scratching, no questions A | Name the financial products for the given transactions | | 1 | Venture financing is made under the financing product know as | Musharka | 2 | Capital not be in commodity or in metal currency for financing products known as | Modaraba | 3 | Inflation and holding the scarcity and price hike through financing mode known as | Morabaha | 4 | Financing is not given but assets are given on rents in financing mode known as | Ijarah | 5 | Rs.5 million finance for Capital Assets | Ijarah | 6 | Early you pay less you pay, delay you pay more you pay | Ijarah | 7 | Four partners are not eligible for management fee amount merge with Net Profit | Musharka | 8 | Selling Expense is the part of the cost of the product | Morabaha | 9 | SME concept is drive from the Financing Mode known as | Modaraba | 10 | Capital is structured by contribution sale of equity participation certification known as | Sukuk | 11 | Net Worth divided into equal amount of unit which are sale by owner to avail financing | Musharka...
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...The needs to revisit the gold dinar as a monetary stability has been voiced out by many scholars and ulama’s since 1970s. The resistance towards the interest economy could be the major motivation for the comeback of gold dinar. The prohibition of interest is not only mentioned in the Quran but the Bible and Torah. The gold prices are indeed relatively stable compared to other commodity prices, exchange rate movement and the stock market index. Manipulation of currencies and the impact toward one economy could be reduced because of the fact that gold does not inflate in value as it is a commodity and, thus has an intrinsic value. The counterfeiting would be checked if gold coin were used. By sing dinar and elimination of interest, Islamic country would have a stable currency and monetary systems, money supply growth can be expected not to overshoot growth in the real sector, thus eliminating the inflationary pressure in the economy. If all these exchange rates are eliminated by means of a single currency like...
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...Principles of Islamic economic system: a) Sole purpose is to obey and please Allah b) The wealth and asset in all their forms given under trust by Allah c) Moral values and guiding factors for all economic activities d) Maximum equitable utilization of human and material resources given by Allah e) Human dignity and respect of labor f) Maximum freedom for economic activity within a just framework g) Equitable distribution of wealth and income and disciplined private ownership h) Simplicity economy and austerity in expenditure i) Adal and Ihsan (justice and kindness) j) Strict prohibition of Riba, interest and usury in all forms. Some of the principles of the Islamic economic system, as laid down by the Qur’an and the Sunnah, are discussed as follows: 1. Allah determines Right and Wrong: We have already discussed in the first chapter that Islamic economic system makes distinction between what is permitted being lawful (Halal) and what is forbidden being unlawful (Haram). To determine what is permitted or lawful (Halal) and what is forbidden or unlawful (haram) is the soul prerogative of God. None but God is empowered to pronounce what is right and what is wrong. Allah has made demarcation between lawful and unlawful in the economic sphere and has allowed man to enjoy those food items and other articles of use which are lawful and avoid those things which are unlawful. The Qur’an says: “O ye who believe ! Forbid not the good things which Allah hath made lawful for...
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...growing economic interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows through the rapid and widespread diffusion of technology. The fact that is important in today’s globalisation that really matters is that the accelerating speed is very fast. In the past it takes years or decades for influence to be passed for such an impact to be made. But today the influences or transmission of culture values, language, economy and administration can take place within months. This is the major difference. So globalisation is the transmission or extension of values, goods, services, thought or culture across border and it occurs with accelerated rate. The drivers for this accelerated speed are the technology and economic liberalism and the free movement of people. The nature of capitalism was such that entrepreneurial talent would not be constrained by geographical and legal boundaries. The growth of a dynamic trade system and the consequent development of classical payment arrangements like the gold standard have been seen by political economists as early yet decisive pointers towards the globalisation of the world economy. At the centre of this process is the idea of the Market and in particular the market for finance, capital, allied with the Multinational Corporation (MNC) is seen as a major agent and channel for the globalisation of production. In the...
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...Islamic Economic Studies Vol.9, No. 2, March 2002 FINANCING MICROENTERPRISES: AN ANALYTICAL STUDY OF ISLAMIC MICROFINANCE INSTITUTIONS HABIB AHMED ∗ While conventional microfinance institutions (MFIs) have expanded their operations in the last two decades, poverty-focused MFIs based on Islamic principles are lagging behind. This paper provides the theoretical basis, operational framework, and empirical support for the establishment of Islamic MFIs. After critically evaluating the conventional MFIs, an Islamic alternative is presented. The theoretical part of the paper shows that there is a great potentiality of Islamic MFIs that can cater for the needs of the poor. Islamic MFIs have some inherent characteristics that can mitigate some of the problems faced by conventional MFIs. Empirical evidence from three Islamic MFIs operating in Bangladesh, in general, supports some of the theoretical assertions. The case studies, however, reveal that Islamic MFIs have not yet tapped some of the sources of funds, nor have they used the variety of financial instruments in their operations. 1 ?. INTRODUCTION With the failure of experimenting in top-down (trickle down) development policies for a few decades to alleviate poverty in most developing countries, financing microenterprises is considered a “new paradigm” for bringing about development and eradicating absolute poverty. 1 Though the importance of developing small-scale enterprises has been discussed for a long time, the innovative...
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...Institution in Bangladesh known as Islami Bank Bangladesh Limited (IBBL). The aim of the study was to see how Islamic banking activities differ from a conventional bank and also to see how Islamic banks may contribute to render financial services towards small and rural sector. By discussing various aspects of the IBBL, it is shown in detail how interest-free bank functions besides many established conventional banks in the country. Although conventional banks are rendering financial services in Bangladesh for a long period still, the innovation of interest-free banking systems, proved its worth in the country’s money market, since IBBL started rendering banking services without any interest in the nation’s financial market in recent years. The article mainly consists of two sections. In the first section, an introduction of Islamic banking systems and various financing modes or techniques used by Islamic banks, are discussed. The second section includes a short history of the Islami Bank Bangladesh Limited (IBBL) along with an empirical based detailed accounts of its financial activities in the country since the introduction of this financial institution in the financial system of Bangladesh. Introduction The introduction of interest-free and equity-based financing by the Islamic banking system is based on the principles of Islamic economics. The aim of Islamic economics, as observed by Molla et.al. (1988), is not only the elimination of interest based transactions and the...
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...Islamic Banking: Answers to Some Frequently Asked Questions 9 ISLAMIC DEVELOPMENT BANK ISLAMIC RESEARCH AND TRAINING INSTITUTE ISLAMIC BANKING: ANSWERS TO SOME FREQUENTLY ASKED QUESTIONS Mabid Ali Al-Jarhi and Munawar Iqbal Occasional Paper No.4 1422H 2001 Mabid Al-Jarhi and Munawar Iqbal 10 Islamic Banking: Answers to Some Frequently Asked Questions 11Mabid Al-Jarhi and Munawar Iqbal 12 Islamic Banking: Answers to Some Frequently Asked Questions 13 FOREWORD In the last quarter of a century, there has been a great interest in the Islamic banking system both at private and public levels. There is an earnest and widespread desire to understand the system. Academicians, bankers and general public, all, have some genuine questions and concerns. Policy makers in the monetary and financial sectors of the IDB member countries have also often asked the Islamic Research and Training Institute (IRTI) some basic questions of theoretical and practical importance about the elimination of interest from the national economies of Muslim countries and the transformation of the prevailing conventional system to an Islamic one. Some of these questions reflect a desire to understand the basic concepts of Islamic finance while others relate to the creation of an enabling environment through macroeconomic reform and structural adjustments that are needed to establish the Islamic financial system and the complications that arise when an effort is made to bring about the transformation...
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...1.0 Abstract Islamic Finance is an abstract concept until the first half of the twentieth century. In Malaysia, it has been almost three decades when the first Islamic bank makes its debut. Islamic banks have to compete with its competitors which is a conventional banks which have longer history than Islamic banks. For this competition, Islamic Finance have to know the awareness, understanding and perceptions of Malaysians towards it. Islamic Finance not only available for Muslims, but it also available for non-Muslims as well. In Malaysia, 40% of the population is non-Muslims and hence non-Muslims market is equally important to Islamic Finance (Bashir & Mail, 2011; Latiff, 2007). The purpose of this research is to examine the level of awareness, understanding and perceptions of Muslims in Malaysia of Islamic Banking products and services. In additional, this study also aims to investigate if any demographic influence it’s means the structure of population of the awareness, understanding and perceptions of Islamic Finance products and services among Muslims in Malaysia. A total of 50 respondents from different course and carrier in Unikl are selected for the purpose of this study. For the analysis, we used the primary data and Secondary data was adopted to analyse the results. The results show that more than half of the respondents are aware of the Islamic Finance in Malaysia but they do not aware of most of the products and services offered by Islamic banks. Muslims understanding...
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...MP A R Munich Personal RePEc Archive Impact of Interest Rates on Islamic and Conventional Banks: The Case of Turkey Erge¸ Etem Hakan and Arslan Bengul Gulumser c ¨ ¨¨ January 2011 Online at http://mpra.ub.uni-muenchen.de/29848/ MPRA Paper No. 29848, posted 4. April 2011 06:17 UTC Impact of Interest Rates on Islamic and Conventional Banks: The Case of Turkey Etem Hakan Ergeça* and Bengül Gülümser Arslanb Abstract Identifying the impact of the interest rates upon Islamic banks is key to understand the contribution of such institutions to the financial stability, designing monetary policies and devising a proper risk management applicable to these institutions. This article analyzes and investigates the impact of interest rate shock upon the deposits and loans held by the conventional and Islamic banks with particular reference to the period between December 2005 and July 2009 based on Vector Error Correction (VEC) methodology. It is theoretically expected that the Islamic banks, relying on interest-free banking, shall not be affected by the interest rates; however, in concurrence with the previous studies, the article finds that the Islamic banks in Turkey are visibly influenced by interest rates. JEL classification: G21; E52 Keywords: Interest-free banking, monetary policy I. Introduction Islamic banks1 are defined as financial institutions that rely on the principle of Profit and Loss Sharing (PLS) with the entrepreneurial partners in their relevant banking...
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...ECONOMIC SYSTEM IN ISLAM Compared with Capitalism and Socialism By Abdul Husain Muhammad 2nd Edition 1975 Published By World Organization for Islamic Services, P. O. Box No.11365-1545, Tehran. (IRAN) IN THE NAME OF ALLAH, THE MOST COMPASSIONATE, THE MERCIFUL. Praise belongs to Allah, the Lord of all. beings; the Most Compassionate, the Merciful; the Master of the Day of Judgment; Thee only we serve, and to Thee alone we pray for succour; Guide us in the straight path; the path of those whom Thou hast blessed, who are immune from Thy wrath and have never gone astray. O'Allah! send your blessings to the head of your messengers and the last of your prophets, Muhammad and his pure and cleansed progeny. Also send your blessings to all your prophets and envoys. CONTENTS Foreword ... ... ... ... ... ... ... ... ... ... ... ... ... .. Introduction .................................... The Triple Nature of Possession ... ... ... ... ... Freedom of Private Enterprise and its Limits ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Social Justice ... ... ... ... ... ... ... ... ... ... ... ... Economic Problems ... ... ... ... ... ... ... ... ... ... 3 7 18 21 34 38 Dear Reader This leaflet is one of several Islamic publications that we distribute, as a contribution, among the people throughout the world. You are requested to study the present publication with care and if you find it useful, please pass it on to your friend. You may re quisition...
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...School of Economics Universiti Kebangsaan Malaysia Bangi, 43600 Selangor D.E., Malaysia E-mail : agibab@ukm.my This draft, February 2008 Abstract The aim of this study is to analyze the sustainability of Islamic micro-financing for developing micro-enterprises (ME). We use the sample of Baitul Mal Wat Tamwil (BMT), as Islamic microfinance institution in Indonesia. Two approaches will be used to explore the sustainability, i.e., technical efficiency (using data envelopment analysis (DEA) and level of outreach. The results indicate that: first, generally the efficiency of BMTs is relatively low. Scale efficiency also indicates that BMTs are operated still far from optimal scale. The results suggest that there is gap in efficiency scores obtained from CCR and BCC models. This indicates that BMTs still face the managerial problems. Second, Islamic micro-financing is useful for developing micro-enterprises and contribute a great social benefits to the society in several ways. Although the profitability efficiency of BMTs is relatively low, since generally BMTs have made a profit and social benefit, Islamic financing can be predicted to be sustainable – able to provide viable Islamic financing. Keywords: Sustainability, technical efficiency of profitability efficiency, level of outreach. 1 Lecturer of Islamic economics, Sultan Agung Islamic University, Semarang and Ph.D student Univeriti Putra Malaysia 2 Professor of banking and financial economics, Islamic economics and finance...
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...Exporting lamb to the Saudi Arabian Market Introduction Samex Australian Meat Company is a long established Meat Trading Company based in Australia & it has been supplying the finest quality Beef / Lamb / Mutton & Goat to a wide variety of markets around the world.Samex was established in 1978 in Australia and quickly become one of the country’s principal meat trading companies. An extensive supply network means Samex can source everything from high-value chilled lamb and beef via airfreight to bulk mutton & goat shipments all Halal Certified products for Middle East markets. Samex had developed live sheep export trade over the years, but it had been under struggle for many years because of ethical issues related to the trade. Some important customers were found live sheep in the Middle East who preferred to process the meat themselves. When pressure groups attacked the trade as unethical Problems arose. It made worse when the Egyptian government did not accept a shipment of live sheep because it claimed the sheep were in poor condition. Among the customers Governments in the Middle East that require highly efficient, time critical deliveries for their armed forces. Another important point of difference at Samex, it is well-known global retail sector. Company’s founders were master butchers and have invested extensive market research in producing meat products valued by the consumer. It also provides in-house shipping and export documentation department’s who...
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...EXAMPLES OF STATUTORY BODIES IN MALAYSIA IN TERMS OF ECONOMIC AND SOCIAL DEVELOPMENT The existence of statutory bodies has contributed a lot towards the development of Malaysia. Some of the developments can be seen in terms of social value and economic value. There are a number of statutory bodies in Malaysia that have contributed towards both the developments mentioned earlier. However, this report will only focus on three examples of statutory bodies in Malaysia, which consist of two statutory bodies that have contributed towards economic development and one statutory body that has contributed towards social development. ECONOMIC VALUE DEVELOPMENT Lembaga Tabung Haji Lembaga Tabung Haji is one of the many examples of statutory body that has contributed towards the development in terms of economic value in Malaysia. Lembaga Tabung Haji is an institution that was established with a focus on Islamic Finance in Malaysia. It was established in 1963. Lembaga Tabung Haji is the largest Islamic fund manager in Malaysia, with funds in excess of RM36 billion (Lembaga Tabung Haji, 2013). Lembaga Tabung Haji has 50 years of experience in terms of deposits, pilgrim services and operations, as well as investments. This many years of experience has strengthened its reputation in the country and proves that it is a very successful institution. Lembaga Tabung Haji has been striving for the economic empowerment of Muslims in Malaysia to leverage existing funds and resources. As a means to...
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...questions for the different discussions (200 words each) Topic 1: What factors affect the consumer's perceptions of fast food and its services? Summary: The two studies by M.K. Brady et al and Kim et al are concerned with the same question: what factors affect the consumer’s perceptions of fast food and its services? But while Kim et al. focuses on American college students to find out what factors that segment finds favourable in a fast-food service, M.K. Brady et al takes their study to the international level to find out how different cultural values can affect the consumer’s behavioural intentions relative to the fast-food industry and its services. Both articles agree that the majority of America customers prefer to trade-off between quality of services and expenditure required (expense-conscious). The American consumer tends to judge consumption of goods and services with a ‘neutral’ and logically based mindset; always asking the question of “is it worth my money?” Kim et al claims that due to relatively inexpensive, quick and convenient service, fast-food is becoming more and more popular among college students in North America. How could restaurants attract this emerging market? Further discussing in particular the college student market, and selecting Wendy’s, Burger King and McDonald’s as target examples will figure out the way to attract college students in fast-food services restaurant. Several factors are taken into consideration, including low price, quality food, fast...
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