Foreign trade financing is an integral part of banking business. Documentary Credit (also called letters of credit or “L/Cs”) is the key player in the foreign exchange business. With the globalization of economies international trade has become quite competitive. Timely payment for exports and quicker delivery of goods is‚ therefore‚ a pre-requisite for successful international trade operations. Growing complexity of international trade‚ separation of commercial parties across the globe and operating
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ECONOMIC DEVELOPMENT‚ 1st definition - it is the sum of growth and change Growth vs. change: Growth - the increase in the kinds and quantities of the available resources Change - the rising standard of living Questions to ponder What is the difference between economic development and development? Which comes first‚ growth or change? Can an economy experience growth without change? TWO CONTEXT OF DEVELOPMENT National - development is a combined effort of both the national and
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the projections of a Rand study of 1995 china will become world’s largest economy by 2010 with GDP of $11.3 trillions. China has managed to get a complete control over the markets of many countries. Its trade abilities have captured a great foreign exchange reserve. Now china has entered in the making of such a car which may be considered very well prepared country to face the challenging environment of new millennium. It can also be said that today no effort to regulate global trade can be
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The Impact of Economic Reforms on Industry in India: A Case Study of the Software Industry N. R. Narayana Murthy The Indian economy‚ in the last decade‚ transitioned from an inward looking‚ closed economy‚ to a liberalized‚export-oriented one. The software sector witnessed unprecedented growth‚ with exports growing at a compounded annual growth rate (CAGR) of around 45 percent and domestic software sales at around 35 percent. In fact‚ before 1991‚ the Indian software sector was adversely affected
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FOREIGN EXCHANGE DEPARTMENT 2 Introduction One of the largest businesses carried out by the commercial bank is foreign trading. The trade among various countries falls for close link between the parties dealing in trade. The situation calls for expertise in the field of foreign operations. The bank‚ which provides such operation‚ is referred to as rending international banking operation. Mainly transactions with overseas countries in respect of import‚ export and foreign remittance come
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Pakistan – 2013 In the monetary policy statement of February 2013‚ the SBP highlighted two main challenges for monetary policy: to manage the balance of payment position and to contain the possible increase in inflation. Since then‚ SBP’s foreign exchange reserves have declined by another $2 billion; from 8.7 billion at end-January 2013 to $6.7 billion as of 5th April 2013‚ mainly due to debt payments. Contrary to expectations‚ however‚ year-on-year inflation has come down by 1.5 percentage points;
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Introduction The project provides Dow Chemical with a once-in-a-lifetime opportunity to become the leading petrochemical company in Argentina as well as in Latin America. In addition‚ the petrochemical sector in Argentina is also an oligopoly‚ posing a low business risk for this project. 1.1 Key advantages of the Bahia Blanca petrochemical pole • The PBB cracker is gas-based making it less costly to operate as compared to a naphtha-based cracker; • There is an excess demand for Polyethylene
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problem” can spread over the whole world and split in two different issues. The first one‚ if European economic crashes it will lead to the whole collapse of world bank system‚ because mainly countries keep their gold and foreign exchange reserve directly in gold and foreign exchange‚ the latter consists of bi-currency basket which includes dollars of America and euro. Furthermore‚ it is a proved fact that our world will be overpopulated in 40 years or less‚ what‚ of course‚ will lead to problems that
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Items and/or transactions are said to be exposed if the following two conditions are met: they are denominated in foreign currencies and they are translated at the current exchange rate. The three types of foreign currency exposure are; Translation‚ Transaction and economic exposures Translation exposure Translation exposure measures the effect of an exchange rate change on published financial statements of a firm. Translation exposure results when a multinational corporation (MNC)
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Exchange rates‚ Pakistan’s GDP and KSE’s prices: A relationship analysis I. Introduction Exchange rates‚ GDP and KSE index 2.1 Exchange rates (ER) are not autonomous in nature‚ these are determined by the forces of demand for and supply of major medium of currency (mostly US dollar in Pakistan) used in imports and exports trade. Whereas the volumes of imports and changes therein seem to be the major source to determine demand for US dollar in Pakistan‚ the value and changes in exports
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