Professional Documents
Culture Documents
4 Main Functions
2.25% In 1971
US had 70% of World’s Gold Reserve
in 1947
Redemption of Dollar in Gold
INTERNATIONAL BUSINESS
IMF
Member Countries Contribute to IMF -
Quota
Quota Depends Upon National Income,
Monetary Reserves, Trade Balance and
Other Economic Indicators
Quota is Pool of Money IMF can Lend to
Member Countries, Basis of How Much
Country Can Borrow as Allocation of SDR
Quota determines Voting Rights
INTERNATIONAL BUSINESS
IMF
Total SDR - 213 million
Directors
INTERNATIONAL BUSINESS
IMF
SDR
Created in 1969
Political Objectives
Aramaco
US investments in Caribbean to Counter
Cuba
Chinese Govt. owned Cos investing in
Foreign Oil Companies
INTERNATIONAL BUSINESS
FDI - International Trade
Post World War 2
Rightist – Free Trade
Leftist – Protectionism
Democracy in most of the countries
International Trade declined after World War 1
International Trade improved after World War 2
Liberalization and Globalization
Technology Advancement
Improved Production
Factor Mobility
INTERNATIONAL
BUSINESS
INTERNATIONAL
BUSINESS
INTERNATIONAL
BUSINESS
INTERNATIONAL BUSINESS
Resource Mobilisation
Access to Foreign Capital Market For Indian
Companies
Permitted Since 1992-93
Companies With Good Track Record For Three
Years Allowed For Euro Issue / GDR / ADR /
FCCB
• Global Depository Receipts
• American Depository Receipts
• Foreign Currency Convertible Bonds
INTERNATIONAL BUSINESS
Resource Mobilisation
DR
• Negotiable Certificate in USD
• Represents non-US company’s Publicaly
Traded Local Currency Equity Shares
• DR Created By Delivering Indian Company
Shares With Depository’s Custodian Bank
• Depository’s Custodian Bank Issues DR in
USD
• DR are Freely Tradable
INTERNATIONAL BUSINESS
Resource Mobilisation
DR
• GDR is Marketed Globally and Not For Specific
Country
• As per Guidelines of 1995 Three Year
Condition is Relaxed For
Infrastructure Projects, Including Power
Oil Exploration
Telecom
Ports and Airports
INTERNATIONAL BUSINESS
Resource Mobilisation
DR
• GDR is Cheap Source of Capital
• Restriction for Investments in Stock Market
and Real Estate
• No Limits for GDR Issues
• Other Investments in India Can be in Form
of Investments by FII
• FCCB Issue Proceeds to Conform to External
Commercial Borrowings and end use