all chapter are covered in this related to international business management. highly informative ppt.

1. INTERNATIONAL BUSINESS
MANAGEMENT
 CONCEPT
 WITH REFERENCE TO INDIA.
 THEORIES

2. CHAPTER 1
INTRODUCTION
 TRADE – DEFINITION OF TRADE Trade.ppt.pptx
 WHY TRADE?
 DIFFERENT TYPES OF TRADE
 (A)Domestic,(B) Foreign trade
(A)Free trade(B)Banned trade and (C)Protected trade
 DEFINITION OF FOREIGN TRADE – TRENDS IN WORLD
TRADE tab-featuresoftrade.docx
 WHY/ IMPORTANCE OF FOREIGN TRADE – GLOBAL
SOURCING whyforeigntrade.ppt.pptx
 FOREIGN EXCHANGE countries.ppt
 DIFFICULTIES IN FOREIGN TRADE TRADE1.ppt.pptx
 ARGUMENTS AGAINST INTERNATIONAL TRADE arg.pptx

3. COMPONENTS IN FOREIGN TRADE
CLASSIFICATION OF GOODS IN FOREIGN TRADE
(A) Merchandise goods (Visible)
Goods in service (Invisible)
(B) Free Goods
Banned Goods
Goods with license
(C) Traditional Goods
Non traditional Goods
(D ) Raw material
Consumables
Capital Goods.

4. • COMPOSITION OF FOREIGN TRADE
EXPORTS AND IMPORTS FACTORS.pptx
• FORMS OF FOREIGN TRADE-COUNTER TRADE
FORMS_OF_TR.pptx
1.Barter
2.Buy back
3.Compensation deal
4.Counter purchase
• GDP – Trade GDP Ratio Gdp.mht tradegdp.pptx
Indian Economic Outlook.htm tradoc_113390.pdf
•Foreign trade and developed countries
•its2011_e.pdf
•General Awareness for Bank PO's and Clerks.htm
•India’s foreign trade
•Economy of India.mht
•fore-trade.pdf

5. • Growth of Foreign trade in India
• Composition of India’s Foreign Trade
• Problems faced by Indian Foreign Trade sector
• Steps taken by Indian Government for improving foreign trade

6. PROBLEMS FACED BY INDIAN EXPORT SECTOR
• Lack of integrated approach.
• Problem recognition and action lags.
• High cost
• Poor quality image
• Unreliability.
• Supply problems
• Technological gap
• Infrastructure constraints
• Faceless presence.
• Political problems
• Marketing Constraints..

7. STEPS TAKEN BY GOVERNMENT
POLICY
FISCAL
PROMOTIONAL
EXIM POLICY
Strengthening RBI
EPC
FEMA
Exim Bank
Commercial Banks
100% EOU
DGFT,IIFT & OTHER
INSTITUTIONS
ECGC
SEZ
GLOBALISATION
LIBERALISATION
FDI
CUSTOMS ACT,EXECISE Trade fairs, Symposiums
ACT
REMOVAL OF
CANALISATION
Registered money
exchanges
ENCOURAGEMENT OF
STC
FIEO
Chamber of Commerce
Infrastructure development
(a)Pipeline
(b) Major and minor ports
(c) NHAI

8. DEPTS/CORPS/AGENCIES/FIS / FOR INDIAN FOREIGN TRADE
GOVT
FI
ACT
CORPS
AGENCIES
Min of EA
EXIM BANK
EXIM
POLICY
STC
EPC
Min of Com
COMMERCIAL
BANKS
FEMA
MMTC
CHAMBER OF COMM.,LOCAL &
FOREIGN
RBI
ECGC
CUSTOMS
ACT
MITCO
GOVT.FORENSIC LAB.
DGFT
ECB
ADB
IBRD
EXECISEACT
SPICES
TRADING
CORP.,
FIEO
DG for
commercial intel
& stat
EXPORT(qc &
INS) ACT
1963
ONGC
ITPO
Dev.com
EC ACT
IOC
EXPORT INSPECTION
COUNCIL,INDIAN COUNCIL OF
ARBIT.,
CAC
FOOD
ADULT.,ACT
100%
EOU/SEZ/EPZ
SEBI,ISO
EDU.INSTITUTIONS,
IFT,
IIP

9. I PARTIES INVOLOVED IN EXIM TRADE
1.INDIVIDUALS
2.CORPORATE AND BUSINESS HOUSES
3.GOVERNMENT
4.BANKS AND RBI
5.EXIM BANK
II GOVERNMENT
(A)HISTORY / ORIGIN
(B)ECONOMIC INTEGRATION-MFN CLAUSE
(C)COMMODITY AGREEMENTS

10. PROCEDURE INVOLVED IN FOREIGN TRADE-INDIAN CONTEXT
•Aware of the various steps taken by the government to improve foreign trade
•Know the departments/agencies involved in foreign trade
•Should be aware of the various risks in foreign trade
•Should know the various foreign currencies/exchange rate
•Decide what type of trade100%EOU/partial EOU/SEZ
•Obtaining the license numberDGFT
•Finance required for business
•Registration with VAT/DUTY
•Clearance from RBI for handling foreign exchange
•Documents involved in foreign trade
•MarketingTechnological gap/Product lifecycle

11. • TRADE POLICY
•Trade – Free trade, banned trade, protected trade definition
• What is free trade? Advantages of free trade
FEATURES OF FREE TRADE.pptx:FEATURES OF FREE TRADE.
•What is banned trade?
•What is Protected trade?
• Areas of Protection
(a) Domestic key industries.
(b) Product life cycle
(c) Dependence result in risk
(d) Employment
(e) Technology development i.e., encouraging creativity.
(f) Protecting Defence
(g) Discouraging anti dumping
(h) Improving terms of trade and balance of payment
(i) Returns for home production.

12. FREE TRADE IMPLIES THE FOLLOWING FEATURES:
•Trade of goods without taxes (including tariffs) or other trade barriers(e.g.,
quotas on imports or subsidies for producers)
•Trade in services without taxes or other trade barriers
•The absence of "trade-distorting" policies (such as taxes, subsidies,
regulations, or laws) that give some firms, households, or factor of
production an advantage over others
•Free access to markets
•Free access to market information
•Inability of firms to distort markets through government-imposed
monopoly or oligopoly power
•The free movement of labor between and within countries
•The free movement of capital between and within countries

13. • DEMERITS
OF PROTECTION
(1)Domestic monopolies.
(2)Deprived of knowing the world developments.
(3)Corruption, discourages innovation
(4)Resistance to change. reduces variety of choice
(5)Encourages Red tapes
•
THE PROCESS OF PROTECTION - TRADE BARRIERS
(a) Tariff barriers – Execise Duty, Customs Duty, Special Duty.
- WTO recommendations.
(b) Non Tariff barriers.
(a) NTB by developed countries
(b) NTB by non- developed countries.

14. NTB BY DEVELOPED COUNTRY
NTB BY DEVELOPING
COUNTRIES
1. VER
IMPORT LICENSING
HEALTH & SAFETY
RESTRICTION STANDARDS
QUOTA
MINIMUM IMPORT AND EXPORT
PRICE.
FOREIGN EXCHANGE
REGULATIONS.
CANALISATION OF IMPORTS,STC
, GOVT. PROCUREMENT.

15. TRADE BARRIERS
TARIFF BARRIERS
TRANSPARENT
(FISCAL)
CUSTOMS DUTY
EXCISE DUTY
SPECIAL DUTY
NON TARIFF BARRIERS
POLICY
1.QUOTA
2.SUBSIDY
3.VER
(A)MIN.EXP.PRICE
(B) MIN.IMP. PRICE
(C )EXPORT DUTY
4.CHANGE IN CUSTOM PROCEDURE
5.SAFETY STANDARD/HEALTH STD.
6.GOVT. IN FOREIGN TV.
7.STATE TRADING ( COMMODITY
AGREEMENTS)
8.FOREIGN EXCHANGE REGULATIONS

16. Protectionist policies
A variety of policies have been claimed to achieve protectionist goals. These include:
TARIFFS: Typically, tariffs (or taxes) are imposed on imported goods. Tariff rates usually vary
according to the type of goods imported. Import tariffs will increase the cost to importers, and
increase the price of imported goods in the local markets, thus lowering the quantity of goods
imported. Tariffs may also be imposed on exports, and in an economy with
floating exchange rates, export tariffs have similar effects as import tariffs. However, since
export tariffs are often perceived as 'hurting' local industries, while import tariffs are perceived
as 'helping' local industries, export tariffs are seldom implemented.
IMPORT QUOTAS: To reduce the quantity and therefore increase the market price of imported
goods. The economic effects of an import quota is similar to that of a tariff, except that the tax
revenue gain from a tariff will instead be distributed to those who receive import licenses
Economists often suggest that import licenses be auctioned to the highest bidder, or that
import quotas be replaced by an equivalent tariff.
ADMINISTRATIVE BARRIERS: Countries are sometimes accused of using their various
administrative rules (e.g. regarding food safety, environmental standards, electrical safety, etc.)
safety
as a way to introduce barriers to imports.
ANTI-DUMPING LEGISLATION:Supporters of anti-dumping laws argue that they prevent
"dumping“of cheaper foreign goods that would cause local firms to close down. However, in
dumping
practice, anti-dumping laws are usually used to impose trade tariffs on foreign exporters.

17. DIRECT SUBSIDIES: Government subsidies (in the form of lump-sum
payments or cheap loans) are sometimes given to local firms that cannot
compete well against foreign imports. These subsidies are purported to "protect"
local jobs, and to help local firms adjust to the world markets.
EXPORT SUBSIDIES: Export subsidies are often used by governments to
increase exports. Export subsidies are the opposite of export tariffs, exporters are
paid a percentage of the value of their exports. Export subsidies increase the
amount of trade, and in a country with floating exchange rates, have effects
similar to import subsidies.
EXCHANGE RATE MANIPULATION: A government may intervene in the
foreign exchange market to lower the value of its currency by selling its
currency in the foreign exchange market. Doing so will raise the cost of imports
and lower the cost of exports, leading to an improvement in its trade balance.
However, such a policy is only effective in the short run, as it will most likely
lead to inflation in the country, which will in turn raise the cost of exports, and
reduce the relative price of imports.
INTERNATIONAL PATENT SYSTEMS: There is an argument for viewing
national patent systems as a cloak for protectionist trade policies at a national
level.

18. •Two strands of this argument exist: one when patents held by one
country form part of a system of exploitable relative advantage in trade
negotiations against another, and a second where adhering to a
worldwide system of patents confers "good citizenship" status despite
'de facto protectionism'.
•Peter Drahos explains that "States realized that patent systems could
be used to cloak protectionist strategies. There were also reputational
advantages for states to be seen to be sticking to intellectual property
systems.
•One could attend the various revisions of the Paris and Berne
conventions, participate in the cosmopolitan moral dialogue about the
need to protect the fruits of authorial labor and inventive
genius...knowing all the while that one's domestic intellectual property
system was a handy protectionist weapon."

19. Trade
Domestic trade
Foreign trade
Trade policy
Free Trade
Protected Trade
Banned Trade
Extent of FT/PT/BT
What % allowed
Degree of Liberalization
Extent of Globalisation

20. GLOBALISATION
• WHAT IS GLOBALISATION GLOBALISATIONPPT.ppt.pptx
globalisation.pptx
• DRIVERS OF GLOBALISATION DRIVERSOFGLOBALISATION.pptx
• STAGES IN GLOBALISATION AND ESSENTIALS TO HAVE
GLOBALISATION
STAGS OF GLOB.pptx
• ADVANTAGES & DISADVANTAGES OF GLOBALISATION
Benefits of globalisation-TABLE.doc
•GLOBALISATION WITH RESPECT TO INDIA
EVOLUTION OF GLOBALISATION IN INDIA.pptx obstofglob.pptx
•Favorable factors favofglob.pptx

21. COMMODITY AGREEMENT - FORMAL AGREEMENTS
•DEFINITION
•WHY COMMODITY AGREEMENTS? - UNCTAD’S ROLE
•FOUR FORMS OF COMMODITY AGREEMENT
-QUOTA
-BUFFER STOCK AGREEMENT
-BILATERAL AGREEMENT AND MULTILATERAL AGREEMENT
•CARTELS-INFORMAL AGREEMENTS
•METHODOLOGY OF GOVERNMENT INVOLVING IN FOREIGN
TRADE - STATE TRADING
-STATE TRADING CORPORATION OF INDIA-STC
-MMTC
-MITCO
-FCI
-IOC
•OBJECTIVES OF STATE TRADING CORPORATION
•CANALISATION

22. MULTINATIONAL CORPORATIONS
• Impact of globalisation
FI
FDI-Resource seeking investment or long term
investment
PORTFOLIO INVESTMENT market
short term
•MNC is a form of FDI
seeking investment or
•DEFINITION OF NATIONAL COMPANY
•FORMS OF BUSINESS ORGANISATION
•GOVERNMENT
•PUBLIC SECTOR –JOINT SECTOR
PARTNERSHIP
•PRIVATE SECTOR
SOLE PROPRIETOR
PRIVATE LTD , PUBLIC LTD
•COOPERATIVE SECTOR

23. DEFINITION OF MULTINATIONAL COMPANIES
•A corporation that has its facilities and other assets in at least one country other than its
home country. Such companies have offices and/or factories in different countries and
usually have a centralized head office where they co-ordinate global management. Very
large multinationals have budgets that exceed those of many small countries.
•Corporation that has production facilities or other fixed assets in at least one
foreign country and makes its major management decisions in a global context.
•In marketing, production, research and development, and labor relations, its
decisions must be made in terms of host-country customs and traditions.
• In finance, many of its problems have no domestic counterpart-the payment of
dividends in another currency, for example, or the need to shelter working capital
from the risk of devaluation, or the choices between owning and licensing.
•In addition to foreign exchange risks and the special business risks of operating
in unfamiliar environments, there is the specter of political risk-the risk that
sovereign governments may interfere with operations or terminate them
altogether.

24. DIFFERENCE BETWEEN NATIONAL AND MULTINATIONAL
NATIONAL
MULTINATIONAL
1. INCORPORATED IN
INDIA
MAY BE IN INDIA OR
ELSEWHERE.
2. OPERATIONS MOSTLY
IN INDIA. ONLY SPECIFIC
TRANSACTIONS IMPORT
AND EXPORT.
TRANSACTIONS WITHIN
COUNTRY AND BETWEEN
THE COUNTRIES
3. EMPLOYS MOSTLY
DOMESTIC PEOPLE.
EMPLOYS ALL OVER THE
WORLD.
4.MOSTLY TRANSACTS
WITH LOCAL CURRENCY.
MOSTLY TRANSACTS WITH
LOCAL & FOREIGN
CURRENCIES.
5. MAY NOT BE
CONTROLLED BY FOREIGN
EXCHANGE ACTS.
NECESSARILY CONTROLLED
BY FOREIGN EXCHANGE
ACTS.
6.CAN BE GOVT, PUBLIC,
PRIVATE SECTOR.
ONLY IN PRIVATE SECTOR.
CO.,

25. •FORMS OF MNCS
FOREIGN COMPANIES
BRANCH
ACQUISITION
MERGER
JOINT VENTURE
•TYPES
1. HORIZONTAL
2. VERTICAL
3. BACK TO BACK

26. STRUCTURE OF MNC
1.Transfer of technology
2.Transfer of technology +investment
3.Transfer of technology+investment+management
4.Franchisee
Foreign brand
Indian brand
5.Investment
6.Branch

27. ADVANTAGES
1.Employment
2.Standard of living
3.Variety of products-no monopoly exploitation
4.Competitive costs
5.Foreign investment
6.Balance f payment
7.Specialization
8.Infrastructure development –communication , power
9.More facilities in pharma
medical equipments, life saving drugs
10.Cultural relationship-Exchange goods in service

28. DISADVANTAGES
1.Exploitation - natural resources @ cheaper costs
2.Exploitation of labour
3.Interference in government-often in changing the laws ,arm twisting
4.Dependence in view of their investment, employment facilities
5.Killing the local domestic industries
6.Taking control of the key industries
7.Slowly converting to colonies-opportunistic

29. •EVOLUTION OF MNCS
->PRE 1991
->POST 1991
•LIST OF MNCS IN INDIA
•COMPOSITION
OF
MNCS
IN
INDIA
->MERCHANDISE GOODS
-> GOODS IN SERVICES
•GROWTH OF MNCS
IN INDIA
•CODE OF CONDUCT FOR FUNCTIONING OF MNCS IN
INDIA
• CAP IN STRUCTURE OF MNC

30. SECTOR
STRUCTURE
% OF FDI
DEFENCE
BANNED
BANNED
RAILWAYS
BANNED
BANNED
INFRASTRUCTURE ONLY TRANSFER
IN RLY. &
OF TECH., TURN
DEFENCE
KEY
BANNED
AGRI., LAND
&OPERATIONS
BANNED
BANNED
RESEARCH IN
AGRI.,-SEEDS,
METHODS
ALLOWED
MULTIBRAND
RETAIL
BANNED
NUCLEAR
ONLY TRANSFER
OF TECH.,
RBI
BANNED
POSTAL
BANNED
BANNED

31. AVIATION
ONLY FOREIGN
ROUTES
100%
INSURANCE
T+ I + M
49%
COMMUNICATION T+ I + M
74%
PHARMA
T+I+M
74%
AUTOMOBILE
T+I +M
74%
SINGLE BRAND
RETAIL
T+I+M
100%
REAL ESTATE
CERTAIN
RESTRICT
100%

32. • STRICT COMPLIANCE IN THE BANNED SECTOR
• ANY REVISION IN THE CAP. APPROVALM BY THE PARLIAMENT.
• STRICT COMPLIANCE ON ALL THE FOREIGN EXCHANGE TRANSA CTIONS
UNDER FEMA
• ALL THE FOREIGN COMPANIES ARE TO BE REGISTERED UNDER
COMPANIES ACT 1956
• BRANCHES OF FOREIGN COMPANIES ARE STRICTLY MONITORED.
• NECESSARY APPROVAL FROM GOVT. IF NATURAL RESOURCES ARE
TO
BE USED.,
• LAND ACQUISITIONS ARE STRICTLY MONITORED.
• QUALITY CONTROL CHECKS
• NO INTERFERENCE IN GOVT. POLICIES
• PERFORMANCE ARE AUDITED

33. • IN KEY INDUSTRIES STRICT VIGILANCE.
• IN SOME SECTORS ONLY INVESTMENTS ALLOWED AND NOT EQUITY SHARE
CAPITAL . EX., INSURANCE SECTOR.
•
IN THE ALLOWED SECTORS , MINIMUM 25% SHARE CAPITAL BY INDIANS.

34. 24/7 Customer
ABB
ABN-Amro
Accenture
Accor
Activision Blizzard
Aditya Birla Group
Advanced Micro Devices
Affiliated Computer Services
Airbus
Air France-KLM
Akzo Nobel
Alcatel-Lucent
Allianz
Alstom
Altria Group
American Express
ANZ
Apple Inc.
Aquent llc
Arcelor Mittal
Arcor
Assicurazioni Generali
Atari
Activision
AXA
Bacardi
Banco Santander
Bank of Montreal
Barrick Gold Corporation
Barilla Group
BASF
Bayer
BBVA
Bic
Billabong
BMW
BNP Paribas
Boeing
Bombardier Inc.
Bouygues
Bridgestone
BP (British Petroleum)
Cadbury Schweppes

35. Capital One
Caterpillar Inc.
Celestica
Centocor
Chevron
Cisco Systems
Citigroup
ConocoPhillips
Coca-Cola
Costco
Creative Labs
Credit Suisse
Crédit Agricole
Cummins
Daimler AG
Dandelion Corporation
Danone
Daud World
Dell
Deutsche Telekom
Dilmah
Dow Chemical
Ejada Systems
EDF
Electronic Arts
Electronic Data Systems
Electrolux
Emerson Electric
Eni
Enel
Emmvee solar systems
Emmvee solar Europe
Emmvee toughened glass and photovoltaics
Embraer
Epson
Ericcson Ernst & Young
Etisalat
ExxonMobil
Faber-Castell
FedEx Express

36. France Télécom
Fiat
Finmeccanica
Gazprom
General Motors
Gerdau
Goodyear Tire and Rubber Company
Google
Hearst Corporation
Hewlett Packard
Hindustan Computers Limited
Hitachi, Ltd.
HSBC
Hutchison Whampoa Limited
ICICI
Infosys
ING Group
Intesa Sanpaolo
Isuzu
Johnson & Johnson
Konami
KPMG
Kronos Inc
Ferrero
Ficosa
Ford Motor Company
General Electric
Generali
Gillette
Halliburton
Heineken
Honda
Huawei
IBM
Indesit
Ingersoll Rand
Intel Corporation
Jardine Matheson
JPMorgan Chase & Co.
Kingston Technology
Krispy Kreme
Lagardère

37. Lesaffre Lactalis
Leoni AG
LG
L'Oréal
Luxottica
Maggi
Manthan Software Services
Masterfoods
Mercedes-AMG
Michelin
Mobil
Millipore Corporation
Monsanto Company
Namco Bandai Games
Nestlé
News Corporation
Nintendo
Novartis
Panasonic Corporation
Pepper Lunch
Petronas
Philips
Proton (carmaker)
Lear
Lexmark
Lockheed Martin
Lukoil
McDonalds
Malaysia Airlines
Martini & Rossi
Mattel Inc
Mercedes-Benz
Microsoft
Motorola
Mohabbatte Corporation
Namco
Namco Bandai Holdings
NetApp Inc.
Nike, Inc.
Nissan
Oracle Corporation
Parmalat
PepsiCo
Pfizer
Procter & Gamble
PSA Peugeot Citroën

38. Red Bull
Reebok
Regus
Renault
Shell/Royal Dutch
Royal Bank of Canada
Rusal
SABMiller plc
Samsung
SanDisk
Sanofi Aventis
SAP AG
Sasken Communication Technologies Limited
Sasol
Schlumberger
Scotiabank
Sega
Sega Sammy Holdings
Servcorp
Siemens
Société Générale
Sony
Sony Computer Entertainment
Sony Music Entertainment
Sony Pictures Entertainment
Southwest Airlines
Square Enix
TCS
Telefonica
Total S.A.
Toyota
TRD
Unilever
Vodafone
Wal-Mart

39. INDIAN BANKING SYSTEM
• RBI IS THE HEAD OF INDIAN BANKING SYSTEM.
• CONTROL BY RBI
• (1) CRR
• (2) SLR
• (3) REPORATE
• (4) REVERSE REPO RATE
• (5) CAR
• (6) BASE RATE / PLR
• RBI CONTROLS THE MONEY MARKET.
• TO CONTROL INFLATION/DEFLATION THE ABOVE RATES ARE
REVISED NOW AND THEN.

40. FINANCE
Capital
DOMESTIC
•SHARE
CAPITAL
•DEBENTURE
•RIGHTS USE
•MUTUAL
FUNDS
LOANS AND ADVANCES
FOREIGN
•ADR/GDR/
P.NOTES
•
•INTERNATIONAL
FINANACE
MAINS
W.BANK
•
•ADB
•
•
•
DOMESTIC
FOREIGN
C.BANKS
C.CREDIT
Le
O/D
PRESHIPMENT
POST SHIPMENT
EXIM BANK
ECGC
NON-FINANCIAL
•EXIM BANKS
FOR FOREIGN
COUNTRIES
•ASSISTANCE
FROM
FOREIGN
GOVTS.
•ECB
->F.BANKS
->FINANCE
INSTIT.
INSTITUTIONS
SOPS.
1.DUTY
DRAWBACK
2.ADVANCE
LICENSE
FACILITIES
3.DUTY
FREEBACK FOR
100%EOU AND
SEZS
4.VARIOUS
OTHER SCHEMES

41. Invoice
Bill
Transport
Document
B/L
Finance documents
L/C
Advance payment
Receipts
Special
documents
DOCUMENTS
Insurance documents
Commercial
Physical
Documents in Foreign trade

42. Risk
Physical
[General
insurers]
Commercial
[credit
guarantee
corporation]

43. ECGC
1.Insolvency
2.Buyer rejecting due to reasons
1.Political reasons
2.Strike
3.Lock outs
4.Policy change
5.Additional charges

44. NOT COVERED BY ECGC
 1.Intentional frauds.
 2.Short term FCER.
 3.Not getting the approval and exports
(knowingly doing mistakes)
SCHEMES OF EXPORT CREDIT
GUARANTEE
Individual operators
Refinancing to banks

45. MONEY MARKET
FOREIGN
DOMESTIC
ORGANISED
1.C BANKS
2.SHARE CAPITAL
3.DEBENTURE
4.MUTUAL
F UNDS
5.FINANCIAL
INSTIT
UNORGANISED
1.CHIT FUNDS
2.SMUGGLING
3.HAWALA
4.MONEY LENDERS
ORGANISED
1.WORLD BANK
2.EXIM BANK
3.EC/GC BANK
4.ADB
5.ECB
6.OTHER
FINACIAL
INSTIT.
7.ADR/GDR
INSTIT.
8.PORTFOLIOS
INVESTMENTS
UNORGANISED
1.EURO
CURRENCY
BANKS
2.HAWALA
3.SMUGGLING

46. ECGC(Export Credit Guarantee Corporation of India Limited)
-To cover the commercial risks in the EXIM trade, during 1957
Government of India setup a separate corporation called Export
Risks Insurance Corporation (ERIC)
-It was renamed as Export Credit and Guarantee Corporation Limited
in 1964.
-From 1990 it was again renamed as Export Credit Guarantee
Corporation of India Limited.
-It is a public sector undertaking under the control of Ministry Of
Commerce headed by chairman and has Board of directors from
banks, insurance companies, trade, DGFT,IIFT etc.

47. EXIM BANK
•Public sector financial institution started on January 1,1992 by an act of
•parliament.
•About 150 countries in the world are having their EXIM banks.
•The main objective of the bank is to promote the EXIM trade of the country.
•The main functions include
->lending
->guaranteeing
->advisory and
->promotional
•Lending--larger loans to Indian co. Foreign co. and refinancing facilities to
commercial banks.
•It issues line of credit exim bank1.ppt

48. Asian Development Bank
ADB logo
Motto
Fighting poverty in
Asia and the Pacific
Formation
December 19, 1966
Type
Regional organization
Legal status
Treaty
Purpose/focus
Crediting
Headquarters
Mandaluyong City,
Metro Manila,
Philippines
Region served
Asia-Pacific
Membership
67 countries
President
Haruhiko Kuroda
Main organ
Board of Directors[1]
Staff
2,500+

49. NOTABLE ADB PROJECTS AND TECHNICAL ASSISTANCE
->Afghan Diaspora Project
->Funding Utah State University led projects to bring labor skills in Thailand
->Earthquake and Tsunami Emergency Support Project in Indonesia
->Greater Mekong Subregional Program
->ROC Ping Hu Offshore Oil and Gas Development
->Strategic Private Sector Partnerships for Urban Poverty Reduction in the Philippines
->Trans-Afghanistan Gas Pipeline Feasibility Assessment
->Loan of $1.2 billion to bail it out of an impending economic crisis in Pakistan and on going
funding for the countries growing energy needs, specifically Hydro-power projects
->Micro finance support for private enterprises, in conjunction with governments, including
Pakistan and India.
->The Yichang-Wanzhou Railway project in the mountainous area of western Hubei
Province and north-eastern Chongqing Municipality, China. (A US $500,000 loan, approved
in 2003).

50. DUTY DRAWBACK
1.
WRONG CALCULATIONS.
2.
USING WRONG TARIFF NUMBERS.
3.
SUPPLIES TO 100% EOUS / SEZ – DEEMED EXPORT.
4.
CONVERTING FROM COASTAL RUN TO FOREIGN RUN.
5.
ANY CHANGE IN GOVERNMENT POLICY, REVISION IN RATES ETC

53. ECONOMIC INTEGRATION-TRADE BLOC
RIA
Regional Integration
Agreements
-SAARC
-SAPTA
RTA
Regional Trade Agreements
-Trade agreements
-NAFTA/EU
2.Every Country in the world is member of any Trade Bloc.
3.OBJECTIVES OF TRADE AGREEMENT
Moving Surplus to deficit
Transfer of Technology
Political ties/Security
Bargaining power
Market access/market informalities
Exploitation by strong nations
On all issues- Domestic Industries
Dumping
Natural resources

54. Areas of
Integration
Free Trade Area
Customs Union
Common Market
Economic Union
Economic Integration
•Popular Integration-EU/NAFTA
-----SAARC/SAPTA---•Objectives of Developing countries- South cooperation
1.Accelerate the pace of development
2.Increase the economic efficiency
3.To strengthen the status of the South Vs. North
•Areas of Economic efficiency
Finance-Trade-Industry and Business-Services-Science and Technology
-Environment and Development-Food Security-Transport and infrastructure
-IT-People to people contacts
•IndoLanka Free Trade Agreement

55. Association of leading emerging economies
Brazil, Russia, India, China
and South Africa
Except Russia all the other countries are newly
developing countries or newly industrialized countries.
Represent 3 billion people GDP of 13.7 US Trillion
Started in 2006 in New York
In 2010-South Africa joined
So far 4 summits have taken place.
Encourages commercial, political and cultural cooperation between the countries.

56. FOREIGN INVESTMENTS
• FOREIGN INVESTMENTS - DEFINITION
• TYPES OF FI
(A)FDI (B) FII © EFFICIENCY SEEKING INVESTMENT
• WHY FI ? ADVANTAGES
INFRA STRUCTURE DEVELOPMENT , TRANSFER OF
TECHNOLOGY
EMPLOYMENT OPPORTUNITIES
STANDARD OF LIVING
BALANCE OF PAYMENT
REVENUE TO GOVERNMENT – TAX / DUTY
ENCOURAGES COMPETITION - QUALITY , PRICE OF THE
PRODUCT

57. DANGERS OF FI
a.OPPURTUNISTIC
b.INTERFERENCE IN NATURAL POLICIES/SECURITY
c.AFFECTING DOMESTIC INDUSTRY
d.COLLAPSES THE NATURAL HERITAGE CULTURE
e.BRAIN-DRAIN
FACTORS AFFECTING FI
a.POLICY OF THE GOVT./STABILITY OF THE GOVT POLITICAL.
b.PROFITABILITY
c.TECHNICAL GAP AND PRODUCT LIFE CYCLE
d.SOCIAL/ECONOMIC ENVIRONMENT
e.AVAILABILITY OF NATURAL RESOURCE

58. FI AND INDIA
LONG TERM
FI
SHORT TERM
FII - PORTFOLIO INVESTMENTS
EFFICIENCY SEEKING INVESTMENTS
FI IS NOT GROWING DUE TO FOLLOWING FACTORS
:-
•MORE IMPORTANCE TO PUBLIC SECTOR
•FDI NOT INTERESTED WITH PUBLIC SECTORS ONLY WITH
PRIVATE SECTOR
•LOT OF RESTRICTIONS
•CONFUSING POLICIES/CORRUPTION/RED TAPES

59. FDI
MNC
All sectors
[Not in Govt. and banned sectors]
Can be started in other sectors
To follow code of conduct strictly
ex:cap

60. FII-Short term
Share market
Resident
Through
Indian bank A/C
KYC must
Non-Resident
-Can invest in Rupee
through NRO A/C
-KYC must
a)Non-resident in foreign currency through
FII
b)Foreign nationals cannot invest directly
only through FII

61. Share market----Fund manager-------Mutual funds
Resident
Can invest directly
KYC must
Non-Resident Can invest in Rupee through NRO A/C
KYC must
Non-Resident in Foreign currency through FII
Foreign national can participate through FII

62. FDI
Foreign Direct Investment
FII
Foreign Institutional Investor
1.Investment can be in rupee and in
all currencies
1.Investment can be in rupee and in
all currencies
2.Investing in long term assets
resource seeking investment
2.Investment in market seeking
investment or short term
3.Investments in MNC in the form of
(a)Merger
(b)Acquisitions
(c)JVs, Subsidiaries and Foreign
company
4.Cap in investment as prescribed in
EXIM policy from time to time
3.Investment in share market,
bond, commodity and gold
bullion markets.
4.Foreign nationals cannot
participate in all markets. NRIs can
participate in NRO account.
However, anybody can invest in
mutual funds through FII. Recently
Government approved investment
by QIP in share market

63. 5.MNCs can float shares in the Indian
market as Indian company and the
certificate is called “Share Certificate". As
foreign company, they can float shares in
India after obtaining approval from RBI/
SEBI and they called “Depository
Receipts.
ex: Standard Chartered Bank issue
5.FIIs issue participatory notes
otherwise called P-notes
6.Indian corporates can go abroad and
invest in foreign JVs
ex: ONGC –Sudan Refinery
6.Normally Indians are not allowed to
invest in shares of foreign companies.
NRIs only can invest in foreign
company funds.
7.Indian blue chip can float shares in foreign
through foreign stock exchanges and the
certificates thus issued are called ADR/
GDR.Both are not convertible to Indian
rupee. Dividends are paid in foreign
currency.

64. CONTROL
CROSS ORDER MERGER/ACQUISITION
CAP ON INVESTMENTS
SHARES ADR/GDR
FDI
SEBI-REGISTRATION –PARTICIPATORY NOTES
FOREIGN INVESTMENTS BY INDIANS ABROAD
HELPING FACTOREXIM BANK
BRIC
TATA,RELIANCE BP

65.  MONETARY SYSTEM
•Old system barter
•Barter with quantity
•Barter with value
•Compensation systemwages,salaries
1900-1945
(Pre-Brettonwood)
•Gold currency
•Gold bullian
•Gold exchange std.
Pre Britainwood
1945-1973
Quota-determination of
FCER
(Formation of IMF)
IMPACT
a.5 currencies were very costly (US,UK,Italy,France and Germany)
b.Developing and underdeveloped countries found it difficult to trade with the above 5
countries.
c.Lot of blackmarketing started.
Organised
Unorganised

66. d.UK-stopped loans to non UK Traders for doing foreign trade.Trade affected
in Suez Canal(1960’s).
e.US also followed the same principle(1965-1970).
SMITH SONIAN AGREEMENT
--Devalued its currency twice.
--Reduced its interest rates for non US for bank deposits(regulation Q)
NO IMPACT ULTIMATELY
1975--IMF cancelled the quota system(gold standard) of finding out FCER.
1978—IMF gave 8 methods to be adopted by member countries.