We will first look at the world trading system as it has evolved under the General Agreement on Tariffs and Trade (GATT) and the establishment ot a permanent international institution known as the World Trade Organization (WTO).
Trade policies in developing countries have been central to the analysis of international development economists over the past decades. The desire for rapid economic growth in developing countries has raised many questions about the relationship between trade and growth. This PPT examines the fact that the policies adopted in many developing countries have often been very different from those emanating from rational allocation models and have provided researchers/ students with a wide scope for analyzing their effects.
BOP or Balance of International Payments is the systematic and summary record of a country’s economic and financial transactionswith the rest of the worldover a period of time. As per IMF, BOP is a statistical statement for a given period showing: (a) transactions in goods & services and income between an economy and the rest of the world; (b) changes of ownership and other changes in that country’s monetary gold, SDRs, and claims on and liabilities to the rest of the world; and (c) unrequited transfersand counterpart entries that are needed to balance, in the accounting sense any entries for the foregoing transactions and changes which are not mutually offsetting. – IMF, Balance of Payments Manual.
Group 7
AGUILA, Don George Kinsee M.
DIMACULANGAN, Shella H.
DINGLASAN, Rydg Chrejt V.
MANTUANO, Dannah Francesca B.
OLAN, Elona Mathel B.
PAALA, Kaycee Ericka B.
PROMENTILA, Julie Anne E.
A2D - Macecon
We will first look at the world trading system as it has evolved under the General Agreement on Tariffs and Trade (GATT) and the establishment ot a permanent international institution known as the World Trade Organization (WTO).
Trade policies in developing countries have been central to the analysis of international development economists over the past decades. The desire for rapid economic growth in developing countries has raised many questions about the relationship between trade and growth. This PPT examines the fact that the policies adopted in many developing countries have often been very different from those emanating from rational allocation models and have provided researchers/ students with a wide scope for analyzing their effects.
BOP or Balance of International Payments is the systematic and summary record of a country’s economic and financial transactionswith the rest of the worldover a period of time. As per IMF, BOP is a statistical statement for a given period showing: (a) transactions in goods & services and income between an economy and the rest of the world; (b) changes of ownership and other changes in that country’s monetary gold, SDRs, and claims on and liabilities to the rest of the world; and (c) unrequited transfersand counterpart entries that are needed to balance, in the accounting sense any entries for the foregoing transactions and changes which are not mutually offsetting. – IMF, Balance of Payments Manual.
Group 7
AGUILA, Don George Kinsee M.
DIMACULANGAN, Shella H.
DINGLASAN, Rydg Chrejt V.
MANTUANO, Dannah Francesca B.
OLAN, Elona Mathel B.
PAALA, Kaycee Ericka B.
PROMENTILA, Julie Anne E.
A2D - Macecon
06 International Trade and Factor MobilityBrent Weeks
To understand theories of international trade
To explain how free trade improves global efficiency
To identify factors affecting national trade patterns
To explain why a country’s export capabilities are dynamic
To understand why production factors, especially labor and capital, move internationally
To explain the relationship between foreign trade and international factor mobility
Unit 1 Overview of International BusinessCharu Rastogi
This presentation deals with general introductory topics such as globalization and its impact, WTO and its impact, Role of World Bank, IMF, Special Drawing Rights, Nature, scope and significance of international finance and Use of IT in international finance.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
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The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
5. domestic trade could be defined as any exchange
that can take place within the political
boundaries of a country.
is the exchange of capital, goods, and services
across international borders or territories. This
type of trade allows for a greater competition
and more competitive pricing in the market. The
competition results in more affordable products
for the consumer.
6. Increased exports
Increased product range
Economies of scale
Increased competition
Economic and international relations
Promotes economic growth
Encourage foreign investments
A source of government revenue
Specialization
Concentration
Movement of factors across borders
9. This occurs when one country can produce a
good with fewer resources than another or if
that country can produce more goods than
another.
10. cost per output unit
Here USA can produce cars with lower cost
than the UK. Therefore USA has the absolute
advantage in producing cars. UK has the
absolute advantage for producing computers.
cars computers
UK 8 4
USA 6 8
11. output per resource unit
In this case UK can produce more computers
compared to that of USA and USA produces
more cars than UK. Therefore UK has the
absolute advantage of producing computers and
USA has the absolute advantage of producing
cars
cars computers
UK 8 10
USA 10 8
12. According to the absolute advantage theory,
each country should specialize in the product
which has absolute advantage and the excess
supply should be exchanged with the product
which has absolute disadvantage
However to achieve this, there should be goods
with absolute advantages to both the countries.
That means if one country has absolute
advantages for both products, international
trade can not occur based on this theory.
13. output per resource unit
Here in this case UK has the absolute
advantage for both the products and hence
trade can not happen between these two
countries. To avoid this problem in international
trade we use the comparative advantage
theory.
tea clothes
UK 8 10
USA 6 8
14. A country has a comparative advantage over
another in the production of a good if it can
produce it at a lower opportunity cost.
Law of comparative advantage
This states that trade can benefit all countries
if they specialize in the goods in which they have
a comparative advantage.
15. output per resource unit
Here India has the absolute advantage for both the products.
Therefore absolute advantage theory is not suitable to evaluate
the international trade occurrence of these two countries.
Considering the opportunity cost formula, calculate the opportunity
cost and fill in the table below as shown and then select the
country with the lowest opportunity cost for each product.
Opportunity cost table
Therefore it is clear that India has a comparative advantage over
Japan in the production of rice whereas Japan has the
comparative advantage of producing televisions.
Rice televisions
India 10 10
Japan 6 8
Rice televisions
India 10/10=1 10/10=1
Japan 8/6=1.33 6/8=0.75
16. cost per unit
Canada has the absolute advantage for both products
according to the absolute advantage theory. Therefore
comparative advantage theory should be used. Considering
the above formula (reciprocal of opportunity cost formula)
prepare an opportunity cost table as shown below,
Opportunity cost table
Therefore Kenya can specialize in the production of
cloths and Canada can specialize for sugar.
cloths sugar
Canada 4 3
Kenya 6 6
cloths sugar
Canada 4/3=1.33 3/4=0.75
Kenya 6/6=1 6/6=1
17. Changes in factor endowment
Changes in technological advancements
Changes in tastes
Specialization
Differences in the sizes of countries
Location of the country
Structure of the market
18. There are only two trading countries
Those two countries produce only two goods
The commodities produced in each country are
identical
There are no barriers to trade and no
transport costs
Labour is perfectly mobile
19. perfect factor mobility
constant returns to scale
no externalities relating to production or
consumption
no transportation costs
constant opportunity costs
20. unrealistic nature of the factor immobility
assumption
increased specialization may lead to diseconomies
of scale
government may restrict trade
transport costs may outweigh any comparative
advantage
use of unrealistic assumptions
neglects the effects of elasticities of demand and
supply
labour efficiency differentials are not considered
nature of the markets changes over time
21. The internal rate is derived from the output or
cost table.
Here we assume that international trade does
not happen.
22. The external rate is derived from the
opportunity cost table.
Here we assume that countries specialize in the
good they have the comparative advantage.
23. Protectionism represents any attempt by a
government to impose restrictions on trade in
goods and services between countries.
This is the opposite of free trade
24. Tariffs- a tax on imports
Quotas- this is a physical limit on the quantity
of imports
Embargoes- this could be identified as a total
ban
Subsidies
Administrative barriers
Import licensing
Exchange controls
25. Infant industry argument
Producers of primary products are discouraged.
ex; paddy farmers
Raise revenue for the government
Help the balance of payments
Protection against dumping
Limits environmental pollution
Prevent harmful products entering the market
26. Hurting consumers- higher prices for consumers
Loss of economic welfare
Regressive effect on the distribution of income
Production inefficiencies
Little protection for employment
Trade wars
27. “Terms of trade” is the rate at which the
products of one country are exchanged for the
products of another.
Terms of trade = price index of exports/price
index of imports x 100
28. It is important to identify the terms of trade to
take national economic decisions. When the
country’s goods are in high demand from abroad
i.e., when its terms of trade are favorable, the
level of money income increases. Conversely,
when the terms of trade are unfavorable, the
level of money income falls.
29. Export price index increase while import price
index remains unchanged.
Export price index remain unchanged while import
price index decrease.
Export price index increases while import price
index decreases.
Export price index increases at a greater
percentage while import price index increases at
a lower percentage.
Export price index decreases at a lower
percentage while import price index decreases at
a greater percentage.
Vice versa of the above
30. Ratio of import prices to export prices
The volume and value of exports and imports
The conditions attached to exports and imports.
31. Income terms of trade can be measured to find
the quantity of imports that can be imported to
the country, using the income generated from the
commodity exports.
Income terms of trade = value of commodity
exports/imports price index x 100
Income terms of trade = exports value index /
imports price index x 100
Income terms of trade = (exports price index x
exports quantity index) / imports price index x 100
32. Increase/decrease in the real national income
Favorable/unfavorable effects to the balance of
payment due to the changes in trade balance.
35. Agricultural exports
Tea
Rubber
Coconut
Kernel products
Other
Other agricultural products
Industrial exports
Food, beverage and tobacco
Textiles and garments
Petroleum products
Rubber products
Ceramic products
Leather, travel goods and footwear
Machinery and equipment
Other industrial exports
Mineral exports
Gems
Other mineral exports
Unclassified exports
36. Agricultural exports have decreased over time
Importance if industrial exports have been
increased.
The most important export category in
agricultural sector is tea
Most important export category in the industrial
sector is textiles and garments
Mineral exports have decreased greatly over
time
37. Consumer goods
Food and beverages
Rice
Sugar
Wheat
Other
Other consumer goods
Intermediate goods
Petroleum
Fertilizer
Chemicals
Textiles and clothing
Other intermediate goods
Investment goods
Machinery and equipment
Transport equipment
Building materials
Other investment goods
Unclassified imports
38. Consumer goods have decreased over time
Intermediate good have increased over time
Food and beverages are the most important
import in the consumer good category
Petroleum is the most important intermediate
import
Machinery and equipments are the most
important investment import
40. The balance of payments is the place where
countries record their monetary transactions
with the rest of the world. Within the BOP
there are two separate categories under which
different transactions are categorized;
Current account
Capital and financial account
41. Current account-this is a record of all payments for
trade in goods and services plus income flow. It is
divided into 4 parts;
Trade account(visible)
Service account(invisibles)
Income account
Current transfer account
Capital account-this refers to the transfer of funds
associated with buying assets such as land. The major
components of capital account are;
Capital transfers
Acquisitions/disposal of non produced, non financial assets
Financial account-the financial account shows the
transactions related to foreign financial assets and
liabilities. The major components of financial account
are;
Direct investments
Portfolio investments
Other investments
Reserve assets
42. Direct investments-investments made in foreign
production organizations could be simply referred
to direct investments. This includes receipts from
privatization too.
Portfolio investments-acquiring financial assets and
liabilities related to company shares, bonds,
debentures and financial derivatives.
Reserve assets-foreign financial assets used by the
CBSL to finance the deficits of balance of
payment. These are called “: monetary
movements”. Following assets are included in the
reserve assets;
Gold reserves
Special drawing rights(SDR)of IMF
Reserve tranche of IMF
Balances of foreign currency
44. Financial account
Long term
Direct investments
Foreign direct investments(net)
Private long term(net)
Inflow
Outflow
Government long term(net)
Inflows
Outflows
Short term
Portfolio investments(net)
Private short term(net)
Commercial bank assets(net)
Commercial bank liabilities(net)
Government short term(net)
Balance of capital and financial account
Allocation of SDR’s
Valuation adjustments
Errors and omissions
Overall balance
45. Balance of payment equilibrium refers to a
situation where manageable deficits are cancelled
out by modest surpluses over a period of time.
So, on short term basis it does not necessarily
mean that a deficit is bad and a surplus is good.
Balance of payments disequilibrium occurs when,
over a particular period of time a country is
recording persistent deficits or surpluses in its
balance of payments.
46. Continuous decrease in the trade balance due to
an increase of imports expenditure.
Insufficient inflows of foreign capital
Increased foreign debt repayments and interest
payments
Rigidity in the imports structure
Devaluation of the currency
Encouraging exports and increase the export
revenue
Decreasing import expenditure
Controlling the domestic inflation
Encouraging foreign direct investments
47. When the government balances a short term
BOP deficit using foreign reserves or obtaining
loans or when transfers surpluses to the
reserve assets, it is called financing the BOP.
When there is a long term deficit in the BOP,
adjustments should be made to the economy to
correct the problem. When the economy
adjusts its exchange rates, fiscal policies and
monetary policies to face the problem is called
adjustments to BOP.
48. This means that the value of exports has
increased at a slower rate than the value of
imports.
Therefore there could have been an increase in
the deficit or the surplus could have changed
into a deficit.
49. This states that devaluation will improve the
balance on the current account on the condition
that the combined elasticity’s of demand for
imports and exports greater than one.
If (PEDx + PEDm > 1) then a devaluation will
improve current account
If (PEDx + PEDm > 1) then an appreciation will
worsen current account
50. In short term demand for imports and exports
tends to be inelastic.
Therefore current account tends to get worse
before it gets better.
Another problem with devaluation is that it can
lead to imported inflation.
This is a problem if it leads to cost push
inflation.
This means the improvement in the current
account might only be temporary
53. When the price of foreign currency is expressed
using the domestic currency it is called direct
quotation.
U.S Dollar ($) 1 = Sri Lankan Rs. 137
When the price of local currency is expressed using
the foreign currency it is called indirect quotation. It
is the reciprocal of the direct quotation. Generally
we use 4 or 5 digits to express this.
Sri Lankan Rs. 1 = U.S. Dollar ($) 0.008
54. This is the value of a country’s currency in
relation to other currencies without adjusting for
the rate of inflation.
It’s the nominal exchange rate adjusted for
inflation
55.
56. Fixed exchange rate system
It is a system in which the value of a country’s
currency is determined in relation to the value of
other currencies through government
intervention.
57. Advantages of fixed exchange rates
Promotes international trade
Is good for small nations
Promotes international investments
Removes speculation
Necessary for developing countries
Economic stabilization
It ensures smooth functioning of the monetary
system
Disadvantages of fixed exchange rate systems
Out dated system
Discourage investments due to lack of speculative
profits
High Monetary dependence
58. Floating exchange rate system
This is a system in which a currency’s value is
determined solely by the interplay of the market
forces of demand and supply instead of
government intervention.
59. Advantages of floating exchange rate system
Automatic balance of payments adjustments
Absence of crisis
Flexibility
Lower foreign exchange reserves are needed to
manage the system
Disadvantages of floating exchange rate system
Uncertainty
Lack of investments
Speculation
Lack of discipline in economic management
60. Managed floating exchange rate system
It is a system under which a country’s exchange
rate is not pegged, but the monetary authorities
try to manage it rather than simply leaving it to
be set by the market.
61. The exchange rate falls, this changes the relative
prices of imports and exports. Exports will appear
to become relatively cheaper in other currencies,
and imports will appear to be more expensive.
Because we buy imports, they are included as part
of the retail price index, and so if the price of
imports goes up, this could be inflationary and
vice versa.
62.
63. Depreciation-is the loss of value of a country’s
currency with respect to one or more foreign
reference currencies, typically in a floating
exchange rate system.
64. Appreciation- this is an increase in the value of
one currency with respect to another under a
floating exchange rate
65. Overvaluation-an exchange rate is overvalued
when it implies that the currency is stronger than
it is according to a long run market determined
rate under a fixed exchange rate system.
66. Undervaluation-an exchange rate is undervalued
when it implies that the currency is weaker under
a fixed exchange rate than it is according to a
long run market determined rate.
67. Devaluation-devaluation is when a country makes
a conscious decision to lower its exchange rate in
a fixed or semi fixed exchange rate.
$ 1 = Rs. 100
$ 1 = Rs. 103
68. Reasons for devaluation
To increase exports and to decrease imports
To reduce the balance of payments deficit
To devalue the overvalued currency
To reduce the outflow of foreign currency reserve
Conditions required to a successful devaluation
Demand for exports should be elastic
Demand for imports should be elastic
Supply of exports should be elastic
Local inflation should be lower than other countries
Other countries should not devalue their
currencies.
69. Revaluation- this is an increase in the value of a
currency in relation to others under a fixed or
semi fixed exchange rate.
$ 1 = Rs. 100
$ 1 = Rs. 103