Different Types of Foreign Exchange Transactions

By | June 1, 2017

A foreign exchange transactions is a contract to buy or sell a quantity of one currency in exchange for another at a specified time for delivery and settlement and at a specified price (exchange rate). These transactions take place in foreign exchange markets. Regarding counterparties and settlement dates, the forex transactions are classified in many categories as trade transactions,… Read More »

Ricardian Theory of Trade

By | May 29, 2017

The Ricardian theory of trade focuses on the comparative advantage of the nation. According to the Ricardian theory of trade, comparative advantage determines the pattern of trade. Ricardo asserted that even if a nation does not possess an absolute advantage,  there are changes of gains through trade among the nations by comparative advantage. The Ricardian theory is based on… Read More »

Notes on London Inter Bank Bid Rate (LIBID)

By | May 28, 2017

London Inter-Bank Bid Rate (LIBID) is the rate bid by banks on Eurocurrency deposits. This is a kind of international rate that banks lend to other banks.It is calculated as one eight percentage point lower than the London Inter-Bank Offered Rate (LIBOR). It is also described as the main interest rate at which major banks in The London… Read More »

Notes on London Inter-Bank Offered Rate (LIBOR)

By | May 28, 2017

The London Inter-Bank Offered Rate (LIBOR) is considered as a daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the London wholesale money market or also known as interbank market. LIBOR is generally higher than the London Interbank Bid Rate (LIBID), the rate at which banks are… Read More »

Weaknesses of Bretton woods Agreement

By | May 26, 2017

The Bretton Woods system of monetary system management created the rules for the commercial and financial relations among the world’s major developing nations. Until the early 1970s, the Bretton Woods system was effective in maintaining the standard or fixed exchange rates for the leading nations that had created it, especially the United Nations. Due to this fixed exchange… Read More »

United Nations Liner Code

By | May 25, 2017

The United Nations (UN) liner code was formulated to cover the following fundamental objectives and basic principles: The purpose of UN liner code is to facilitate the orderly expansion of world seaborne trade; The objective is to stimulate the development of regular and efficient liner services adequate to the requirement of the trade concerned; The objective is to ensure a balance of interests between suppliers and… Read More »

Notes on Central Warehousing Corporation (CWC)

By | May 24, 2017

Central Warehousing Corporation (CWC) a premier warehousing Agency in India, instituted during  1957 furnishing logistics support to the agricultural sector and is one of the largest public storage warehouse operators in India offering logistics services to a various group of customers. Central Warehousing Corporation (CWC) providing logistics support to the agricultural sphere is one of the largest public… Read More »

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 »