...Module 1: Commercial policy Origin of Commercial Policy Ricardo in 1817 proposed the theory of comparative cost advantage which brought out the capacity of one nation to produce more of a good with the same amount of input than another country. To prove Comparative cost advantage in India arises due to a billion people having advantage in production of goods or services that require large amounts of labor. Factors like ability to speak English, low labor costs due to large workforce, cheaper internet, and telephone communications add to the advantage. International trade cycle The commercial policy adapts a change as per the changing international trade cycle. The international trade shows stages like emerging exports with mass production followed by foreign competition and finally competition from imports. 1. Exports May be only manufacturer of new product Overseas customers learn of product, export market develops 2. Foreign production Export volume grows Production technology becomes stable Reduced costs for transportation Exports diminish 3. Foreign competition Foreign manufacturers gain experience Compete in export markets 4. Import competition Foreign producers obtain economies of scale Compete in quality and undersell domestic company in domestic market. Due to this dynamic business setting, the trade policy has to emerge and adapt it self to international demands and cause economic development. Comparative advantage theory of David...
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...International Finance: A Course Overview Mihir A. Desai* Harvard University and NBER ABSTRACT This paper describes the International Finance course at Harvard Business School for instructors considering adopting the associated material. The paper begins by arguing that the forces of globalization have fundamentally changed the scope and activities of firms thereby altering the practice of finance within these firms. As a consequence of an increasing reliance on tightly-integrated foreign operations, a parallel world of finance has been opened within every multinational firm and this world has, heretofore, been overlooked. The course materials are designed to address the many aspects of financial decision making within global firms prompted by these changes that are not addressed in traditional materials. The paper provides an overview of the structure of the course and its seven modules with particular emphasis on the three modules that constitute the core of the course. The paper also describes an analytical framework that has been developed through the creation of the course materials to guide critical financial decisions on financing, investment, risk management and incentive management within a multinational firm. This framework emphasizes the need to reconcile conflicting forces in order for multinational firms to gain competitive advantage from their internal capital markets. The paper concludes with a discussion of the course's pedagogical approach and detailed descriptions...
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...FINANCIAL INSTITUTIONS AND PORTFOLIO MANAGEMENT FINANCIAL INSTITUTIONS AND PORTFOLIO MANAGEMENT Introduction The household has two sources of income namely the husband earning $100,000 per year as a middle level manager in a fortune 500 Company and the wife who is an attorney and also earns $100,000 per year. The couple has no children and as such they do not have expenses such as school fees, upbringing costs for the children. The couple is middle aged and as such their appetite to risk is relatively lower than their younger counterparts and relatively higher than their older counterparts. This report shall therefore create an investment plan for the couple which shall include the portfolio that the couple should invest in order to realize their investment goals and also to help them minimize the risk associated with such an investment. The report shall peg the performance of the portfolio created against a benchmark and shall then discuss the rationale behind the benchmark portfolio selected. The report shall discuss the portfolio performance over the last five years and determine the average weekly returns of the portfolio over the same period and compare it with the returns of the benchmark portfolio. The report shall then calculate the standard deviation of the portfolio and discuss the factors that led to the performance of the portfolio and the benchmark portfolio such as the economy, market specific factors, industry specific factors, as well as country specific...
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...WHARTON on... Global Finance ............... http://executiveeducation.wharton.upenn.edu http://knowledge.wharton.upenn.edu Global Finance: Looking Back, and Ahead The world is undergoing the worst financial crisis in decades. Although the global credit crunch was sparked by the bursting U.S. housing bubble, one of the most important causes was more basic: For too long, spending in the United States has outpaced incomes. This fundamental mismatch was supported temporarily by an extremely lax U.S. monetary policy that led to easy credit, and by foreign producers who supplied cheap goods to America in part by managing their currencies. The resulting, unsustainable imbalance led to financial collapse and a worldwide economic downturn, even in rapidly developing countries such as Brazil, Russia, India and China—the BRIC countries. The following articles from Knowledge@Wharton look at these and other developments in global finance. They also examine how similar crises have been managed successfully—or not—on a national basis in the past, and what lessons they may offer. 3 Contents Huge Reserves, Emerging Market ‘Challengers’ and Other Forces Are Changing Global Finance Rapidly developing economies (RDEs) have increasingly become drivers of change—and sometimes disruption—in global financial markets. That has important implications for companies in the United States and Europe as new players emerge, including sovereign wealth funds, state-controlled entities, and acquisition-minded...
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...’11 - Session 4 We conclude the previous topic Globalization & Multinational Business Finance including the Discussion Note: Managing for Value - Yahoo’s Decision to Expand internationally / Finance function in a global corporation; Case study: Ranger Supply Company; and start with, Topic 2 International Financial System, BoP and Foreign Exchange Markets- Government Policies Managing for Value: Impact of Trade Policies on Firm; and How Yahoo!is exposed to Exchange Rate Systems and Intervention. Case study: MapleLeaf Paper Co., Self-evaluation Exercises: Applications: Point Counter-point; Blades Inc. Case; and Small Business Dilemma Readings: Topic 2 & 6 from Jeff Madura; & Topic 2 from Readings in IFM Handout) 10th Jul ‘11 – Session 5 We conclude Topic 2A International Financial System & Government policies; and introduce: Topic 3 International Financial Markets: Foreign Exchange Markets. Discussion Note 1: Managing for value – Intel’s currency trading; 2. Foreign Exchange Markets - Don’t Blame Speculators for Falling Currencies!? Self-assessment: Blades Inc.& Small Business Dilemma. Readings: Topic 3 from Jeff Madura; & Topic 3 from Readings in IFM Handout) Assignment-1(Individual): Article Review – Finance Function in a Global Corporation and Case study 1 Blades Inc.: Decision to Expand Internationally, is due on 7thJuly 2011, 5.30pm. Important Note: All students are required to come prepared as per the session plan given and as clarified...
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...CIS 502 Week 10 Technical Paper Global Finance Inc. xxxxxxxxxxxxx June 19, 2013 xxxxxxxxxx Situation Global Finance Inc. has grown rapidly in the past years, and due to this they have gained a huge customer base. The company invested in the network designed it to be fault tolerant and resilient from any other network failures. However, although the company’s financial status has matured and its network has expanded at a rapid pace, its network security has not kept up with company growth (NIST, 2012). GFI’s network is fairly stable as it has not experienced many outages due to network failures. Global Finance Inc. has hired three network engineers to keep up with the network growth and bandwidth demand by the company employees and the clients. However, this company has not hired any security personnel who can take care of the operational security responsibility. The trusted computing base internal network in the Global Finance Inc. hosts the company’s mission critical systems without which the company’s operation and financial situation would suffer. The Oracle database and email systems are among the most intensively used application servers in the company. Global Finance Inc. cannot afford system outages because its cash flow and financial systems heavily depend on the network stability. This company has experienced denial of service attacks (DOS) twice this year and its Oracle database and email servers has been down at...
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...Bachelor of Commerce: Finance & Economics Specialist (Effective 2012/13) 1. Program Overview & Required Courses Overview and Summary •This is a four-year honours program which leads to the Bachelor of Commerce •This Specialist requires 10.0 RSM + 10.0 non-RSM, with 13.5 specified FCEs •10 RSM = 4.0 required + 2.0 specified electives + 4.0 unspecified electives •10 non-RSM = 1.0 MAT + 6.5 ECO + 2.5 unspecified FAS electives •RSM100Y Introduction to Management •ECO100Y Introduction to Economics •MAT133Y Calculus and Linear Algebra * First-Year Requirements Upper-Year ECO Requirements (i) Upper-Year ECO Requirements (ii) •ECO204Y/ECO206Y Microeconomic Theory and Applications •ECO208Y/ECO209Y Macroeconomic Theory •ECO220Y/ECO227Y Quantitative Methods in Economics ** •2.5 from any 300+ ECO Upper-Year RSM Requirements (i) •RSM219H Introduction to Financial Accounting •RSM222H Management Accounting I •RSM230H Financial Markets •RSM330H Investments •RSM332H Capital Market Theory •RSM333H Introduction to Corporate Finance •0.5 from: •RSM250H Principles of Marketing •RSM260H Organizational Behaviour •RSM270H Operations Management •RSM392H Strategic Management •1.0 from: •RSM430H Fixed Income Securities •RSM432H Risk Management for Financial Managers •RSM433H Advanced Corporate Finance •RSM434H Financial Trading Strategies •RSM435H Futures and Options Markets •RSM437H International Finance •0.5 from: •RSM295Y/296Y/395Y Special Topics: Summer Abroad •RSM437H International...
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...the basic functions of the international banking system and financial market (such as bonds, equity, and money markets) and provide a plan for using these financial markets to finance your global operations. 3. Present a financial strategy to support long-term financing of operations for possible expansion of your MNC (taking into consideration portfolio management, capital budgeting and foreign direct investment decisions). More Details hidden... Activity mode aims to provide quality study notes and tutorials to the students of ITB 400 WK 8 Assignment 2 in order to ace their studies. ITB 400 WK 8 ASSIGNMENT 2 To purchase this visit here: http://www.activitymode.com/product/itb-400-wk-8-assignment-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM ITB 400 WK 8 ASSIGNMENT 2 ITB 400 WK 8 Assignment 2 - International Market Expansion Write a 6-8 page paper in which you: 1. Examine possible risks of foreign currency exposure for your company and prepare a strategy for how each of these risks can be managed. Please be specific and consider all possible implications to your company. 2. Evaluate the basic functions of the international banking system and financial market (such as bonds, equity, and money markets) and provide a plan for using these financial markets to finance your global operations. 3. Present a financial strategy to...
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...CITIBANK INDIA Industry: Banking Financial services Owner Citigroup Founded 1902 Headquarters Mumbai, Maharashtra, India Profit After Tax INR 3422 crores (fiscal year ended March 31, 2015) Total Income INR 13490 crores (fiscal year ended March 31, 2015) Number of employees 7,500 Citibank financials: https://www.online.citibank.co.in/portal/newgen/home/Website-Citibank-Financials-2015.pdf Citibank India is an Indian private sector bank headquartered in Mumbai, Maharashtra. It is a subsidiary of Citigroup, a multinationl financial services corporation headquartered in New York City, United States. The Indian Headquarters are at Bandra Kurla Complex, a hub for multinational corporations in Mumbai. Currently, Citigroup, the owner of Citibank India, is the largest foreign direct investor in financial services in India with a total capital commitment of approximately US$4 Billion in its onshore banking and financial services business and its principal and alternate investment programmes.It operates 44 full-service Citibank branches in 31 cities and over 700 ATMs across the country. Citibank is an employer of about 7,500 people. Citi offers consumers and institutions a broad range of financial products and services,including consumerbanking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's franchise in...
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...Business Objective – ‘Global Finance Reports’ Operating Guide [pic] Support Team Last Updated on 04-Dec-2011 Table of Contents Objective 3 How to get access to the ‘Secured Finance Folder’ in BO 3 Folder Structure in BO for Global Finance Reports 3 Reports repository 3 BO Support Team 3 Annexure 3 Search Key option in BO 3 Additional Filter option in Bo 3 Enlarge screen with new window and show/hide tool bar 3 How to Change Parameters in BO 3 How to Select Input controls in BO 3 Report Layout Options 3 Objective Considering the complexities in our process, Finance teams always demand reports consolidated from combination of several Companies/Servers. Baan has limitations to generate reports from multiple companies/servers combination. Creating a global universe in BO connecting various company/server (Baan 4, Baan5) will enable us to create much needed consolidated reports at MEP code level. Global universe will also connect to FDSS for using Global mappings like Global Accounts, Bus Org, Global Cost centers, Global Product Lines.. Etc. Using Baan data and Global mappings, reports with Global dimensions can be produced dynamically. Business Objects will be used as the common reporting tool for Finance Reporting. BO will be used to produce dynamic reports from Baan similar to OLS formats. This will be a great help for the site Finance teams to effectively monitor their Month end numbers...
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... Working Capital Management in a Post-Recession Environment: The View from Europe Contents Executive summary Cash, liquidity and credit during an uncertain recovery Pursuing improvements in working capital An opportunity to expand the toolkit Investing in working capital improvements Conclusion Sponsor’s perspective 2 3 5 7 11 12 13 © 2010 CFO PUBLISHING LLC SEPTEMBER 2010 1 Working Capital Management in a Post-Recession Environment: The View from Europe Executive summary In June and July of 2010, CFO Research Services (a unit of CFO Publishing LLC) conducted an electronic survey among senior finance executives representing mid-size to large companies in Europe. Our goal was to understand finance executives’ concerns with working capital management in the wake of global recession, as well as their plans for improving working capital performance. We asked finance executives a series of questions about the impact that the recession had on their working capital management, which areas of working capital their companies would focus on during the course of economic recovery and whom their companies worked with to improve working capital management. We also asked about current and planned levels of usage for specific, automated cash-management and tradefinancing techniques. Overall, our research reveals the following main points: • In Europe, effective management of working capital has assumed greater urgency as market demand is slow to return and short-term credit remains...
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...BUSINESS STUDIES (CODE - 054) CLASS–XI (2013-14) One Paper Units Periods 100 Marks 3 Hours Marks Part A: Foundations of Business 1. 2. 3. 4. 5. 6. Nature and Purpose of Business Forms of Business Organisations Public, Private and Global Enterprises Business Services Emerging Modes of Business Social Responsibility of Business and Business Ethics } } } } } 22 26 22 22 12 16 120 20 18 12 50 Part B: Finance and Trade 7. 8. 9. 10. 11. Sources of Business Finance Small Business Internal Trade International Business Project Work 30 16 30 14 30 120 20 20 10 50 PART A: FOUNDATION OF BUSINESS Unit 1: Nature and Purpose of Business: • • • • • • • Concept and characteristics of business. Business, profession and employment -Meaning and their distinctive features. Objectives of business - Economic and social, role of profit in business Classification of business activities: Industry and Commerce. Industry - types: primary, secondary, tertiary - Meaning and sub types 120 Periods 22 Periods Commerce - trade: types (internal, external, wholesale and retail; and auxiliaries to trade: banking, insurance, transportation, warehousing, communication, and advertising. Business risks - Meaning, nature and causes. Meaning of business with special reference to economic and non-economic activities.Two or three definitions of business with one conclusive definition. Fundamental features of business which differentiate it with other activities of society. Meaning of profession and employment...
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...are subjects ofinternational law. Their owners or shareholders are generally national governments, although other international institutions and other organizations occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations, although some bilateral financial institutions (created by two countries) exist and are technically IFIs. Many of these are multilateral development banks (MDB). TYPES Multilateral development bank A multilateral development bank (MDB) is an institution, created by a group of countries, that provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long-term loans (also known as credits) below market rates, and through grants. The following are usually classified as the main MDBs: • World Bank • European Investment Bank(EIB) • Asian Development Bank (ADB) • European Bank for Reconstruction and Development (EBRD) • Inter-American Development Bank Group (IDB, IADB) • African Development Bank (AfDB) • Islamic Development Bank (IsDB) There are also several "sub-regional" multilateral development banks. Their membership typically includes only borrowing nations. The banks lend to their members, borrowing from the international capital markets. Because there is effectively shared responsibility for repayment, the...
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...Title Page Introduction a. Global Health Issues b. Economic Impact Behavioral Finance a. Emotional Biases i. Risk Aversion ii. Regret Aversion Market Implications a. Every market in today’s economy was impacted either directly or indirectly by the SARS epidemic. i. Most saw measurable decreases in GDP b. Global cost of lost economic activity due to SARS was approximately $54 billion Conclusion a. Economic damage caused by SARS can be attributed to the behavioral finance emotional biases of loss aversion and regret aversion affecting investors globally. Global Health Issues, Behavioral Finance and the Markets: The Role of Behavioral Finance in how Global Health Issues Impact the Economy Jonathan Davis David A Kennedy Lee V Smith Tayler T Young Syed Zain T Zaidi November 10, 2015 University of Houston- Downtown Global Health Issues, Behavioral Finance and the Markets: The Role of Behavioral Finance in how Global Health Issues Impact the Economy With globalization on the rise, infectious diseases that appear in one country have the opportunity to spread rapidly to others. Recent examples include the 2003 outbreak of Severe Acute Respiratory Syndrome (SARS) and the 2014 outbreak of the Ebola virus. According to the World Health Organization (WHO), 8,098 individuals became infected worldwide with SARS and 774 of those individuals ultimately died from the illness (CDC, 2005). While Ebola killed 5,160 out of the 14,098 people...
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...J B GUPTA CLASSES 98184931932, drjaibhagwan@gmail.com, www.jbguptaclasses.com Copyright: Dr JB Gupta 16 International Capital Market Chapter Index Global Depository Receipts American Depository Receipts External Commercial Borrowings Debt Indian Depository Receipts EURO ISSUES The international capital market is a huge source of capital. At a time when the Indian economy is gearing up to meet the challenges of being an open economy, it assumes of greater significance. Up to 1991, Indian companies were not allowed to raise capital from overseas capital market. For their foreign exchange requirements, they had to depend on government financial institutions, foreign banks, international development agencies etc. By the middle of 1991, the process of liberalization of Indian economy was set in motion by the government and now the Indian Corporate is allowed to issue equity or bonds in overseas capital market. The term ‘Euro Issue’ denotes that the issue is made abroad through foreign currency denominated securities and the securities are listed on any overseas stock exchange. The Indian companies get their issues listed on LUXEMBOURG stock exchange. Subscription for such securities can come from any part of world, except India. Companies making Euro Issue can issue depositary receipts, foreign currency convertible bonds or pure debt bonds. Pure debt is not preferred by the investors for two reasons: (i) No Capital appreciation, and (ii) low credit rating of India by various...
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