World Of Finance

        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 cred

        World of Finance by M.Vijaya Sai Finding the best bank will require some comparison shopping, since as with anything else, the best deal isn't likely to find you, you'll have to find it. Of course, it's up to you to decide how much time you want to spend looking for the best bank for your needs...remember that time is money. The internet is usually the easiest way to comparison shop.However, if you have a lot of questions that might not be answered on a web site, or if you just want to see how attentive a bank is, you might prefer to visit the local branch, especially once you've narrowed your choice down to just two or three contenders. You will probably make your  decision based on servises and fees. Below is a list of features and services you might be looking for, and a list of fees you should be aware of, which you can use to make your comparison shopping easier. If you're considering online banking, be sure to read the online banking s

        World of Finance by M.Vijaya Sai Letter of credit (L/c) is the most preferred payment option for exporters. Compared to other payment options, L/c has many safeguards for sellers and at the same time assurance for buyers. It is usually issued by larger banks and contain a promise to pay a seller (beneficiary) upon receipt of goods by a buyer if certain conditions outlined in the letter have been met.  What is Letter of Credit ? Letter of Credit or (L/c) is a legal document to arrange payment between a buyer(importer) and seller (exporter). The bank, as intermediary, ensures security for both parties, giving the exporter confidence that the importer is capable of paying for the goods while assuring the importer that payment will be made to the exporter only after the terms outlined in the letter of credit have

          World Of Finance by Vijaya Sai.M Why  dollar is  considered  as currency  king?Why the influence of dollar on various assets is very high?How it influences us this time around, however remains to be seen. Understanding the dollar is as important as understanding commodities, equities and bond cycles. The currency is a global benchmark and it is this dollar link that completes the economic cycle as assets interact with each other. Unfortunately, we do not pay much attention to this link. The geographical bias, lack of inter-market knowledge, single asset focus and cycle blindness restrains our understanding of the currency. The dollar is as important as gold. The two assets mirror each other and run contrary. If gold strengthens, dollar weakens and vice-versa. It is the classic interaction between the tangible and the intangible -- gold and commodities being the hard or tangible assets and the dollar being the intangible or paper asset. Cash is an imp

          World Of Finance by Vijaya Sai.M   Finance minister Pranab Mukherjee began presenting the Union budget for 2010-11 in the Lok Sabha today after the Cabinet approved the document. Here are some of the highlights of his budget speech. The Indian economy was facing grave uncertainty. Growth had started decelerating when the interim and full budget for 2009-10 were presented. At home there was added uncertainty because of subnormal southwest monsoon.Yet, the economy now in a far better position than it was eight years ago. India weathered the economic crisis well and emerged from the global slowdown faster than any other country. First challenge before the government is to quickly revert to high GDP growth path of 9%.Expects 10% economic growth in the near future. Second challenge is to harness economic growth to make it more inclusive and consolidate gains. Third challenge is to overcome weakness in government's public delivery mechanism; a long way

          World Of Finance by Vijaya Sai.M Railway Minister Mamata Banerjee appeals to business houses to join hands for building partnership with Railways. Presenting Railway Budget for 2010-11, Banerjee says a special task force will be set up for early clearance of projects. No fare hike for passengers. Railways not to be privatised; It will remain with the government, says Banerjee. While not privatising, Railways have to develop business models for improving earnings, says Banerjee. Railways 2020 vision document will contain short, medium and long-term goals. Commitments fulfilled to the maximum. Out of 120 trains announced in last budget, only three remain to be flagged off because of lack of broad-gauge lines, says Banerjee. Plans to launch a pilot project for fire detection.The government also plans to construct more underpasses for safety, the minister said while presenting the Railway Budget. Railways to start six water bottling plants in places lik

          World Of Finance by Vijaya Sai.M As we step into a new decade, the growth drivers for the economy are diverse and robust, but so are the challenges ahead. India is today poised to enter a phase of exponential growth and development. From an unlikely global player stagnating at a low rate of growth in the 1980s, to a nation of great potential, India’s economic transformation has been remarkable. Given this transformation, and the strength of the fundamentals supporting it, the next decade promises to be exciting for the Indian economy. To understand what is possible, I always look at proxies from the world around us.  The best and most recent example is that of China. China grew at a CAGR (compounded annual growth rate) of 9.5% for over 25 years since it began its economic reform process in 1979. The impact of such high growth was phenomenal. China’s GDP grew tenfold over this period. According to China’s official statistics, the poverty rate fell from 5