Introduction to Export Finance Essay Example for Free

Introduction to Export Finance Essay Credit and finance is the life and blood of any business whether domestic or international. It is more important in the case of export transactions due to the prevalence of novel non-price competitive techniques encountered by exporters in various nations to enlarge their share of world markets. The selling techniques are no longer confined to mere quality; price or delivery schedules of the products but are extended to payment terms offered by exporters. Liberal payment terms usually score over the competitors not only of capital equipment but also of consumer goods. The payment terms however depend upon the availability of finance to exporters in relation to its quantum, cost and the period at pre-shipment and post-shipment stage. Production and manufacturing for substantial supplies for exports take time, in case finance is not available to exporter for production. They will not be in a position to book large export order if they don’t have sufficient financial funds. Even merchandise exporters require finance for obtaining products from their suppliers. This project is an attempt to throw light on the various sources of export finance available to exporters, the schemes implemented by ECGC and EXIM for export promotion and the recent developments in the form of tie-EXIM tie-ups, credit policy announced by RBI in Oct 2001 and TRIMS. Concept of Export Finance: The exporter may require short term, medium term or long term finance depending upon the types of goods to be exported and the terms of statement offered to overseas buyer. The short-term finance is required to meet â€Å"working capital† needs. The working capital is used to meet regular and recurring needs of a business firm. The regular and recurring needs of a business firm refer to purchase of raw material, payment of wages and salaries, expenses like payment of rent, advertising etc. The exporter may also require â€Å"term finance†. The term finance or term loans, which is required for medium and long term financial needs such as purchase of fixed assets and long term working capital. Export finance is short-term working capital finance allowed to an exporter. Finance and credit are available not only to help export production but also to sell to overseas customers on credit. Objectives of Export Finance: * To cover commercial Non-commercial or political risks attendant on granting credit to a foreign buyer. * To cover natural risks like an earthquake, floods etc. An exporter may avail financial assistance from any bank, which considers the ensuing factors: a) Availability of the funds at the required time to the exporter. b) Affordability of the cost of funds. Appraisal: Appraisal means an approval of an export credit proposal of an exporter. While appraising an export credit proposal as a commercial banker, obligation to the following institutions or regulations needs to be adhered to. Obligations to the RBI under the Exchange Control Regulations are: * Appraise to be the bank’s customer. * Appraise should have the Exim code number allotted by the Director General of Foreign Trade. * Party’s name should not appear under the caution list of the RBI. Obligations to the Trade Control Authority under the EXIM policy are: * Appraise should have IEC number allotted by the DGFT. * Goods must be freely exportable i.e. not falling under the negative list. If it falls under the negative list, then a valid license should be there which allows the goods to be exported. * Country with whom the Appraise wants to trade should not be under trade barrier. Obligations to ECGC are: * Verification that Appraise is not under the Specific Approval list (SAL). * Sanction of Packing Credit Advances. Guidelines for banks dealing in Export Finance: When a commercial bank deals in export finance it is bound by the ensuing guidelines: a) Exchange control regulations. b) Trade control regulations. c) Reserve Bank’s directives issued through IECD. d) Export Credit Guarantee Corporation guidelines. e) Guidelines of Foreign Exchange Dealers Association of India.

Epic of Gilgamesh Essay - The Ever-Changing Gilgamesh :: Epic Gilgamesh essays

The Ever-Changing Gilgamesh  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      The main character in the book The Epic of Gilgamesh, is Gilgamesh himself. In the beginning of the book one realizes that Gilgamesh is an arrogant person. Gilgamesh is full of himself and abuses his rights as king. He has sexual intercourse with the virgins of his town and acts as though he is a god. Throughout the story, many things cause Gilgamesh to change. He gains a friend, he makes a name for himself by killing Humbaba, and he tries to become immortal because of the death of Enkidu. Through these main actions his personality changes and he becomes a better person. The quest for immortality after the death of Enkidu is the first sign that Gilgamesh has changed. Gilgamesh becomes frightened when he realizes that he isn’t immortal. After the death of Enkidu, Gilgamesh tries to find immortality by trying to cross the ocean to find it. He sounds pathetic as he rambles of his reason for trying to find everlasting life. His state of being at this part in the book, which is the end, is completely different from his arrogant beginning of this epic. Gilgamesh has gone from arrogant to scared. The death of Humbaba also changes Gilgamesh. Humbaba is evil. Many people who live in the city of Uruk fear Gilgamesh. Most would say that Gilgamesh himself is, in fact, evil. He has sex with the virgins, he does what he wants, and he tends to offend the gods. He has lots of problems with Ishtar. By going into the forest and facing Humbaba, Gilgamesh makes a name for himself and changes the views of the people in his city. This is a very arguable point. The great deed of killing Humbaba, makes him a better person because he protects his city.   Although it could be argued that Gilgamesh kills Humbaba only to make a name for himself, this not the case. Gilgamesh does this because of his love for Enkidu and his people, he has changed from the beginning of the epic. The main factor contributing to the changes in Gilgamesh the love that develops with Enkidu. Enkidu is made to make Gilgamesh more human. In the first paragraph of the book the gods are angry with Gilgamesh and send down an equal of himself, they send down Enkidu. After becoming friends, Gilgamesh changes because he has an equal to be with.

Low Interest Rate Long Term Effect

Low Interest Rates Long Term Effect â€Å"The prolonged low-interest rate environment is transforming the banking industry from savings and loans to service and loans,† said Dan Geller, executive vice president of research firm Market Rates Insight in San Anselmo, Calif. (Fitzpatrick) Consumers may think that the continued low interest rates are a profound thing, but banks on the other hand think much differently. Consumers are refinancing their houses at rates as low as 2. 875%, while big banks like Hudson City Bancorp Inc. , a mortgage lender, are being forced to sell themselves to M&T Bank Corp.These super low interest rates are complicating the industry’s journey to a recovery from the financial crisis. In the article† Low Rates Pummel Banks†, from the Wall Street Journal, Dan Fitzpatrick further explains the negative effect of long term low interest rates. Fitzpatrick describes it as â€Å"Borrowers Benefit, but Industry Lending Profits Hit Lowest Leve l in Three Years†. (Fitzpatrick) Usually, we would believe it to be true that lower interest rates are a good thing, because they make it cheaper to borrow. Like so, there are those in support of the lower rates for example, the Fed and the consumers.For the past four years, since the 2008 financial crisis, the Federal Reserve Board had been trying to bounce back the US economy. The short term interest rates are extremely low and by purchasing more bonds they are reducing long-term rates. In all this has lowered the Ten-year U. S Treasury yields to 1. 43%, the lowest since World War II. (Fitzpatrick) The Feds see this as a positive because they believe the low rates increase the economic growth along with employment. They support their belief by stating that the low rates make it easier and cheaper for companies and individuals to borrow money.These low rates developed, in part due to the Fed, have sprung a rush in the mortgage refinancing industry. The growth in mortgage refi nancing has assisted fee revenue at two major companies, J. P. Morgan Chase & Co. and Wells Fargo & Co. , which control nearly half of the mortgage market. Wells Fargo decided to keep nearly $10 billion of residential mortgages, which they would normally sell to investors just in search of more yield. Fitzpatrick speaks of a woman in N. Y. , Katherine Karl, which was able to refinance her house at 2. 875%, who expresses that her desire to refinance was because of the istoric low of interest rates. Many others like Karl have also taken opportunities to refinance their homes. Although those companies have survived, and Karl lowered her rate by 2. 5 percentage points, not all are seeing such positive effects. In an article by Robin Sidel of the Wall Street Journal, â€Å"Regional Bank Lands Big-City Deal†, we can see the downside of these low interest rates. (Sidel) Hudson City, a mortgage lender based in Parmus, N. J. , has 135 branches, and has assets of $43. 6 billion, decide d to sell itself to M&T Bank Corp. , which is a regional bank.Hudson City’s loan portfolio was largely focused in mortgages, due to the drop in interest rates and the refinancing, the value of the portfolio dropped along with the interest rates. Once Hudson City had started to see a devalue of their portfolio, they had considered transforming themselves into a commercial lender. However, after much thought the Chief Executive Ronald Hermance decided this would take too long and increase their staff tremendously. (Sidel)This then led to the selling of Hudson City to M&T Bank Corp. If interest rates continue to remain low we can expect to see more mergers and smaller banks selling out.In Chapter 5 of the book, there is an application called â€Å"Explaining Low Japanese Interest Rates†, which can help better understand the negative effect of low interest rates. In the 1990s and early 2000s, Japanese interest rates became the lowest in the world, in November of 1998, the interest rate on Japanese six-month Treasury bills actually turned negative. In correlation with the extremely low interest rates was a prolonged recession, which was followed with deflation. As we learned in the book, the negative inflation causes an increase in the demand for bonds, because of the decrease in expected return on real assets.This in turn caused the demand curve to shift to the right. The negative inflation also raised the real interest rate, thereby causing the supply of bonds to adjust, moving the supply curve to the left. In the end this led to an increase in the bond price and a decrease of interest rates. In the book it explains to us that the interest rate is negatively related to the bond price. In other words, when the equilibrium bond price rises, the equilibrium interest rate falls and vise-versa. There are other factors which led to the down fall of interest rates in the Japanese market.For example, the lack of profitable investments opportunities in Japan , and the business cycle contraction and the decrease of wealth during the business cycle contractions. These all would lead to the increase in bond price and the decrease of interest rates. This application shows us that low interest rates are not a good thing. In Japan’s case, the low and negative interest rates were a sign that their economy was in trouble with falling prices and a contracting economy. The interest will only rise back to normal levels when their economy returns back to a better economy.Fitzpatrick goes on to explain that because of the low interest rates banks will have to consider new ways to make money like Hudson City considered, by offering other services. However, higher cost of those banking services could lead to losing customers in the financial world which would then in return have a negative effect. He predicts that â€Å"Over time, subdues bank profits are likely to accelerate a shakeout that has halved the number of insured institutions over t he past two decades†. (Fitzpatrick) He states this will happen by the pressure for smaller banks to take advantage of new technologies.The banks are suffering from the low interest rates in more ways than one. The low interest rates affect the bank’s benefit of holding depositors’ cash at the low rates. The problem with this is that many banks are stuck with a large increase in money to invest during which returns on securities are decreased. These deposit rates are at their lowest since the 50’s. (Fitzpatrick) Another way banks are suffering is due to the fact that they bet on higher-yielding mortgage bonds before rates fall. To counteract their losses banks are increasing loan prices.They are doing this in hopes of regaining their losses from the low interest rates, or refinancing of mortgages. In conclusion, although the low interest rates show a profit for some, the long term effect of low interest rates is bad for us. The low interest rates are a sign that are economy is in trouble, opposite of what the Fed is trying, just as in Japan. For our economy to return to a healthy economy, the interest rates will need to return to a normal level. Many banks will be forced to merger or sell out. Other banks will be forced to create new services. There will be an increased cost in the banking system, by increasing loan prices.The financial crisis and the Fed attempt to strengthen the economy have proven to be the derivative of the low interest rates which is driving the banking system, and mortgage lenders into chaos. Fitzpatrick describes it perfectly by quoting Mr. Lied saying Many smaller banks will â€Å"throw in the towel† and sell, as Hudson City did, if low rates persist, Mr. Lied said. â€Å"There are no magic bullets and there is no easy answer. † Works Cited Fitzpatrick, Dan. â€Å"Low Rates Pummel Banks. † Wall Street Journal 23 October 2012: A1. Sidel, Robin. â€Å"Regional Bank Lands Big-City Deal. â₠¬  Wall Street Journal 28 August 2012: C1.

Sociology Inequalities in Health and Illness - 2621 Words

Task 3 – Inequalities in Health and Illness (P3,M2,D1) Gender (P3) - Mortality rates: In gender men generally die earlier than women because of many aspects of their life, for instance in general women tend to take care of them self more physically. A lot of women go on diets and a lot of exercise DVDs and detunes are mainly aimed at women. Women in general do try to eat healthy and go on diets whereas men usually arent very aware of their diet and don’t have much intention on improving it. Women also tend to go to the doctors and seek medical advice more often and have their illnesses diagnosed and treated more often than men. Because women generally take more care of themselves and do more to keep themselves healthy. Life†¦show more content†¦Also the living conditions of someone in class 5 could be a very low standard and could affect things like their breathing and cause repertory problems. Also working class may do jobs which affect their bodies as lung and stomach cancer occur twice as often among men in manual jobs as among men in professional jobs. Disease Incidence: More unskilled manual workers are dyeing due to things such as lung and stomach cancer because of the environment they work in and the fumes they are breathing can harm their lungs. More men and women die before retirement age in class 5 than class 1. More class 5 people die on a whole because they may become ill and will not have what they need to help the disease and their living conditions can worsen their condition. Disease prevalence: There will be a higher amount of people in class 5 with illnesses than people in class 1 but certain illnesses may trend in certain classes, for example obesity which is a growing problem in the UK is more common in higher classes than lower classes, this could be due to money causing greediness. Class 1 have the money to eat healthily but also can overindulge and spend money on food which they don’t need. Whereas in class 5 it might be a struggle to get enough food to keep you satisfied. Morbidity rates: People in class 1 suffer more from things which can be a result of their lifestyle like diet, alcohol and drugs; this is because they have money to spend on theseShow MoreRelatedInequalities in Health Essay1272 Words   |  6 Pagescompany name] 11 Inequalities of Health Sociology Gemma McCann Inequalities of health Gemma McCann Word count 1310 Within this assignment I am going to explore the sociological perspectives of Marxism and Functionalism and a brief view on interactionism in relation to health and inequalities in health. 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