Headwinds & Tailwinds in Finance Explained | [Video + Real-Life Examples]

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Real-Life Examples of Headwinds & Tailwinds in Finance 1. Tech Layoffs – A Headwind for Consumer Spending In early 2023, major tech companies like Google, Meta, and Amazon laid off thousands of employees. This created a headwind for the economy — especially consumer spending. 💭 Why? Fewer jobs = less income = lower spending on gadgets, travel, and entertainment. 📊 Impact: Retailers like Target and Best Buy saw lower sales forecasts. Even small businesses suffered due to shrinking customer budgets. 🔹 2. Falling Crude Oil Prices – A Tailwind for Airlines When global crude oil prices dropped in 2020 during the pandemic, it became a tailwind for airlines. 💭 Why? Fuel is one of the largest costs for airlines. Cheaper oil = lower expenses = higher margins. ✈️ Impact: Even though passenger numbers were down, lower costs helped some airlines survive the storm. 🔹 3. High Interest Rates – A Headwind for Home Buyers In 2023–24, central banks raised interest rates globally to fight ...
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Import and Export Procedure

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        World of Finance by M.Vijaya Sai
EXPORT-IMPORT PROCEDURE
1   Seller and Buyer conclude a sales contract, with method of payment usually by letter of credit (documentary credit).

2    Buyer applies to his issuing bank, usually in Buyer's country, for letter of credit in favor of Seller (beneficiary).

3    Issuing bank requests another bank, usually a correspondent bank in Seller's country, to advise, and usually to confirm, the credit.

4    Advising bank, usually in Seller's country, forwards letter of credit to Seller informing about the terms and conditions of credit.

5    If credit terms and conditions conform to sales contract, Seller prepares goods and documentation, and arranges delivery of goods to carrier.

6    Seller presents documents evidencing the shipment and draft (bill of exchange) to paying, accepting or negotiating bank named in the credit (the advising bank usually), or any bank willing to negotiate under the terms of credit.

7    Bank examines the documents and draft for compliance with credit terms. If complied with, bank will pay, accept or negotiate.

8    Bank, if other than the issuing bank, sends the documents and draft to the issuing bank.

9    Bank examines the documents and draft for compliance with credit terms. If complied with, Seller's draft is honored.

10    Documents release to Buyer after payment, or on other terms agreed between the bank and Buyer.

11    Buyer surrenders bill of lading to carrier (in case of ocean freight) in exchange for the goods or the delivery order.
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Avinash said…
Nice and simple article.
April 16, 2010 at 10:38 AM
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