Category Archives: Business

Functions of the SWIFT

By | May 18, 2017

Society for Worldwide Interbank Financial Telecommunications (SWIFT) functions as a worldwide financial messaging network. In such a network, financial messaging network. In such a network, messages are exchanged securely and reliably between banks and other financial institutions. SWIFT also markets software ad services to financial institutions, most of it is used on the SWIFT network and bank identifier codes… Read More »

Role of World Bank in International Financial Market

By | May 12, 2017

The World Bank Group consists of naturally the World Bank itself and the International Development Association (IDA), the International Finance Corporation and the Multinational Investment Guarantee Agency. Besides the World Bank Group, these are also multinational regional development banks for Latin America, Africa, and Asia. Though these are technically different from World Bank, their functioning is similar to… Read More »

Hecksher Ohlin Samuelson Theory

By | April 26, 2017

The Heckscher-Ohlin-Samuelson (HOS) theorem states that a country which is relatively abundant in labor will have a comparative advantage in the labor-intensive good and the relatively capital abundant country will have a comparative advantage in the capital-intensive good. Thus, it is the factor abundance rather than technology which determines the pattern of trade. The Heckscher-Ohlin theorem predicts the pattern of trade between countries… Read More »

Benefits of Trade Liberalization

By | April 17, 2017

The Major benefits of trade liberalization during a foreign trade for a country are: Liberalization gets a country’s markets enlarged and increased sales opportunities for its manufacturers and suppliers. Trade liberalization creates employment opportunities for many workers. It also makes consumers happy as they can now purchase things at lower prices due to healthy competition and have wider choices in products. The most… Read More »

Foreign Exchange Quotations

By | March 14, 2017

The foreign exchange quotations, meaning the way relative prices or rates are quoted fo trade between players in the foreign exchange markets. Foreign exchange quotations can be three types, they are: Direct Quotation Indirect Quotation and Cross rates Direct quotation: Direct quotation is the price of one unit of a foreign currency quoted in terms of the home country’s currency.… Read More »

What are the Objectives and Functions of International Monetary Fund (IMF)?

By | March 2, 2017

Objectives of International Monetary Fund (IMF): The first Article of the Fund’s charter laid down six objectives for the International Monetary Fund. These are: To promote international cooperation by providing the machinery for consultation and collaboration by members on international monetary issues. To facilitate the balanced growth of international trade and through this, contribute to high levels of… Read More »

Factors Affecting Balance of Payments

By | February 28, 2017

The balance of payments can be affected two accounts: Current Account Capital Account 1. Factors Affecting the Current Account: A country’s current account balance can significantly change its national economy. Therefore, it is important to identify the factors that influence current account. The most important factors affecting current account are: Inflation National Income Government Restructures Exchange Rates. Above factors… Read More »

Liner and Tramp Shipping

By | February 4, 2017

The Bulk Cargo requires shipping services in which large quantity of one type of cargo can be carried at low per unit cost. These services are provided by carriers known as Tramps. Quite naturally, there are different types of tramp ships to carry different kinds of bulk cargo. On the other hand, carriers which provide regular and scheduled… Read More »