Notes for T.Y.B.com-International Business

8/2/2019 Notes for T.Y.B.com-International Business

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Give full forms of the following:1) ICFTU : International Confederation of Free Trade Unions. A new international

trade union confederation came in to existence from 31/10/2006. The ICFTU is aconfederation of 215 national trade union centres, representing 125 million tradeunion members in 145 countries and territories

2) SAARC : South Asean Association for Regional Co-operation-BANGLADESH,

BHUTAN, INDIA, MALDIVES, NEPAL, PAKISTAN and SRI LANKA Objectives of SAARC:a) to promote the welfare of the peoples of SOUTH ASIA and to improve theirquality of life;b) to accelerate economic growth, social progress and culturaldevelopment in the region and to provide all individuals the opportunity to live indignity and to realise their full potentials;c) to promote and strengthen collectiveself-reliance among the countries of SOUTH ASIA; d) to contribute to mutual trust,understanding and appreciation of one another's problems;e) to promote activecollaboration and mutual assistance in the economic, social, cultural, technical andscientific fields;f) to strengthen cooperation with other developing countries;g) tostrengthen cooperation among themselves in international forums on matters ofcommon interests; andh) to cooperate with international and regionalorganisations with similar aims and purposes.

PRINCIPLES1.Cooperation within the framework of the ASSOCIATION shall be based on respectfor the principles of sovereign equality, territorial integrity, political independence,non-interference in the internal affairs of other States and mutual benefit.2. Such cooperation shall not be a substitute for bilateral and multilateralcooperation but shall complement them.3. Such cooperation shall not be inconsistent with bilateral and multilateralobligations.

3) UCP:- Unifrom Customs and practice for documentary Credits4) TRIMS: The Agreement on Trade Related Investment Measures5) FEDAI:-Foreign Exchange Dealers Association of India: FEDAI was set up in1958 as an Association of banks dealing in foreign exchange in India (typically calledAuthorised Dealers ADs) as a self regulatory body and is incorporated under Section25 of The Companies Act, 1956. It's major activities include framing of rulesgoverning the conduct of inter-bank foreign exchange business among banks vis--vis public and liaison with RBI for reforms and development of forex market.Presently some of the functions are as follows:

Guidelines and Rules for Forex Business. Training of Bank Personnel in the areas of Foreign Exchange Business. Accreditation of Forex Brokers Advising/Assisting member banks in settling issues/matters in their dealings. Represent member banks on Government/Reserve Bank of India/Other

Bodies. Announcement of daily and periodical rates to member banks.

Due to continuing integration of the global financial markets and increased paceof de-regulation, the role of self-regulatory organizations like FEDAI has alsotransformed. In such an environment, FEDAI plays a catalytic role for smoothfunctioning of the markets through closer co-ordination with the RBI, otherorganizations like FIMMDA, the Forex Association of India and various marketparticipants. FEDAI also maximizes the benefits derived from synergies of


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member banks through innovation in areas like new customized products, benchmarking against international standards on accounting, market practices, riskmanagement systems, etc.

6) TRIPS: Trade Related Aspects of Intellectual Property Rights7) NRI: Non Resident Indian8) SDR: Special Drawing Rights: Special drawing rights (SDRs) are part ofsupplementary foreign exchange reserve assets defined and maintained by theInternational Monetary Fund (IMF). It is not a currency but artificial monetary unitcreated by IMF and represents a claim to currency held by IMF member countries forwhich they may be exchanged. SDRs can be exchanged for euros,Japanese yen,pounds sterling, or US dollars. It is a non-gold foreign exchange reserve assets. SDRwas created in 1969 to supplement a shortfall of preferred foreign exchange reserveassets, namely gold and the US dollar, the SDR's value is defined by a weightedcurrency basket of four major currencies: the Euro, the US dollar, the British pound,and theJapanese yen. SDRs are denoted with the currency code XDR.

9) FTZ: Free Trade Zone. A free trade zone (FTZ) or export processingzone (EPZ) is an area within which goods may be landed, handled, manufacturedor reconfigured, and re-exported without the intervention of the customsauthorities. However, goods are subject to custom duty when they enter domestictrade area.

10) LIBOR:-London Interbank Offer Rate. The Libor is the average interest ratethat leading banks in London charge when lending to other banks. Banks borrowmoney for one day, one month, two months, six months, one year, etc., and theypay interest to their lenders based on certain rates. The Libor figure is an average ofthese rates. Many financial institutions, mortgage lenders and credit card agenciestrack the rate, which is produced daily at 11 a.m. to fix their own interest rateswhich are typically higher than the Libor rate. As such, it is a benchmark for financeall around the world.

11) FMCG: Fast Moving Consumer Goods12) EFTA: The European Free Trade Association is a free trade organisationbetween four European countries that operates parallel to, and is linked to, theEuropean Union (EU). EFTA was established on 3 May 1960 as a trade bloc-alternative for European states who were either unable to, or chose not to, join thethen-European Economic Community (EEC) which has now become the EU. TheStockholm Convention, establishing EFTA, was signed on 4 January 1960 inStockholm by seven countries. Today's EFTA members are Liechtenstein, Iceland,Norway, and Switzerlandthe latter two being founding members. The initialStockholm Convention was superseded by the Vaduz Convention, which provides forthe liberalisation of trade among the member states.

13) IMF: International Monetary Fund-The International Monetary Fund (IMF) is an

organization of 187 countries, working to foster global monetary cooperation, secure financialstability, facilitate international trade, promote high employment and sustainable economic

growth, and reduce poverty around the world. The IMF promotes international monetarycooperation and exchange rate stability, facilitates the balanced growth of international trade, and

provides resources to help members in balance of payments difficulties or to assist with poverty

reduction. The IMF works with other international organizations to promote growth and povertyreduction. It also interacts with think tanks, civil society, and the media on a daily basis. Through

its economic surveillance, the IMF keeps track of the economic health of its member countries,
http://en.wikipedia.org/wiki/Foreign_exchange_reservehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Pounds_sterlinghttp://en.wikipedia.org/wiki/US_dollarshttp://en.wikipedia.org/wiki/Currency_baskethttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/British_poundhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/ISO_4217http://en.wikipedia.org/wiki/Foreign_exchange_reservehttp://en.wikipedia.org/wiki/International_Monetary_Fundhttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Pounds_sterlinghttp://en.wikipedia.org/wiki/US_dollarshttp://en.wikipedia.org/wiki/Currency_baskethttp://en.wikipedia.org/wiki/Eurohttp://en.wikipedia.org/wiki/US_dollarhttp://en.wikipedia.org/wiki/British_poundhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/ISO_4217


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alerting them to risks on the horizon and providing policy advice. It also lends to countries in

difficulty, and provides technical assistance and training to help countries improve economic

management. This work is backed by IMF research and statistics14) WTO: World Trade Organisation.

15) FIPB: Foreign Investment Promotion Board: The government of India has set up aspecial Board known as the Foreign Investment Promotion Board. This specially empoweredBoard in the office of the Prime Minister, is the only agency dealing with matters relating toFDI as well as promoting investment into the country. It is chaired by Secretary Industry(Department of Industrial Policy & Promotion). Its objective is to promote FDI into India byundertaking investment promotion activities in India and abroad by facilitating investment inthe country through international companies, non-resident Indians and other foreign investors .

State the reasons whether following statements are true or false

1) Political friendship results in the growth of bilateral or multilateral trade2) Every export-import transaction involves the foreign exchange.3) Globalisation does not require interdependence and integration of individual

countries of the world.4) TNCs operate more on confederation principle.5) Euro is a common currency of Asian countries.

6) Human dignity and respect is religious or spiritual but globallyacceptable.

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Notes for T.Y.B.com-International Business