Category Archives: Business

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 »

Chartering Practices

By | January 3, 2017

When a tramp carrier is engaged, it is said to be under the charter, as one charterer hires either the whole or the bulk of its space. A tramp may be chartered in some ways. Three most important forms of engagement are: Voyage Charter Time Charter Bareboat Charter or Charter by Demise. Let us now discuss them in… Read More »

Basic Principles of ECGC Operation

By | December 29, 2016

There are two basic principles on which ECGC (Export Credit Guarantee Corporation of India Limited) works: 1. The spread of Risk: An exporter is required to insure all the shipments that may be made by him during the next two years. To avoid undue difficulty to the exporters, exceptions have been made in respect of transactions made against… Read More »

Organizations Covering Credit Risk

By | December 23, 2016

There are more than 40 organizations providing cover for credit risk, the world over. They are all members of a union International Union of Credit and Investment Insurers’ also popularly known as the BERNE UNION, In most countries, these organizations are government controlled through a few of them are privately owned. In India, we have the ‘Export Credit Guarantee Corporation of… Read More »