Capital Account Convertibility Essay Example for Free

Capital Account Convertibility Essay Capital Account Convertibility. Should India adopt full convertibility? Capital Account Convertibility-or a floating exchange rate-is a feature of a nation’s financial regime that centers around the ability to conduct transactions of local financial assets into foreign financial assets freely and at market determined exchange rates. It is sometimes referred to as Capital Asset Liberation or CAC. CAC is mostly a guideline to changes of ownership in foreign or domestic financial assets and liabilities. Tangentially, it covers and extends the framework of the creation and liquidation of laims on, or by the rest of the world, on local asset and currency markets. Current account convertibility allows free inflows and outflows for all purposes other than for capital purposes such as investments and loans. In other words, it allows residents to make and receive trade-related payments receive dollars (or any other foreign currency) for export of goods and services and pay dollars for import of goods and services, make sundry remittances, access foreign currency for travel, studies abroad, medical treatment and gifts, etc. Capital account convertibility is considered to be one of the major features of a developed economy. It helps attract foreign investment. It offers foreign investors a lot of comfort as they can re-convert local currency into foreign currency anytime they want to and take their money away. At the same time, capital account convertibility makes it easier for domestic companies to tap foreign markets. At the moment, India has current account convertibility. This means one can import and export goods or receive or make payments for services rendered. However, investments and borrowings are restricted. But economists say that Jumping into capital account convertibility game without considering the downside of the step could harm the economy. The East Asian economic crisis is cited as an example by those opposed to capital account convertibility. Even the World Bank has said that embracing capital account convertibility without adequate preparation could be catastrophic. But India is now on firm ground given its strong financial sector reform and fiscal consolidation, and can now slowly but steadily move towards fuller capital account convertibility. CAC has 5 basic statements designed as points of All types of liquid capital assets must be able to be exchanged freely, between any two nations, with standardized exchange rates. The amounts must be a significant mount (in excess of $500,000). Capital inflows should be invested in semi-liquid assets, to prevent churning and excessive outflow. Institutional investors should not use CAC to manipulate fiscal policy or exchange rates. Excessive inflows and outflows should be buffered by national banks to provide collateral. Prior to its implementation, foreign investment was hindered by uneven exchange rates due to transactions, and national banks were disassociated from fiscal exchange policy and incurred high costs in supplying hard-currency loans for those few local companies that wished to do business abroad. Due to the low exchange rates and lower costs associated with Third World nations, this was expected to spur domestic capital, which would lead to welfare gains, and in turn lead to higher GDP growth. The tradeoff for such growth was seen as a lack of sustainable internal GNP growth and a decrease in domestic capital investments. When CAC is used with the proper restraints, this is exactly what happens. The entire outsourcing movement with Jobs and factories going oversees is a direct result of the foreign investment aspect of CAC. The Tarapore Committee’s recommendation of tying liquid assets to static assets (i. e. investing in long term government bonds, etc) was seen by many economists as directly responsible for stabilizing the idea of capital account liberalization. The Reserve Bank of India has appointed a committee to set out the framework for fuller Capital Account Convertibility. The Committee, chaired by former RBI governor S S Tarapore, was set up by the Reserve Bank of India in consultation with the Government of India to revisit the subject of fuller capital account convertibility in the context of the progress in economic reforms, the stability of the external and financial sectors, accelerated growth and global integration. Economists Surjit S Bhalla, M G Bhide, R H Patil, A V RaJwade and Alit Ranade were the members of the Committee. The Reserve Bank of India has also constituted an internal task force to re-examine the extant regulations and make recommendations to remove the operational impediments in the path of liberalisation already in place. The task force will make its recommendations on an ongoing basis and the processes are expected to be completed by December 4, 2006. The Task Force has been set up following a recommendation of the Committee. The Task Force will be convened by Salim Gangadharan, chief general manager, in- harge, foreign exchange department, Reserve Bank of India, and will have the following terms of reference: Undertake a review of the extant regulations that straddle current and capital accounts, especially items in one account that have implication for the other account, and iron out inconsistencies in such regulations. Examine existing repatriation/ surrender requirements in the context of current account convertibility and management of capital account. Identify areas where streamlining and simplification of procedure is possible and remove the operational impediments, especially in espect of the ease with which transactions at the level of authorized entities are regulations are consistent with regulatory intent. Review the delegation of powers on foreign exchange regulations between Central Office and Regional offices of the RBI and examine, selectively, the efficacy in the functioning of the delegation of powers by RBI to Authorised Dealers (banks). Consider any other matter of relevance to the above. The Task Force is empowered to devise its work procedure, constitute working groups in various areas, co-opt permanent/special invitees and meet various trade ssociations, representative bodies or individuals to facilitate its work. Capital Account Convertibility. (2018, Oct 17).

The Cold War and U.S. Diplomacy Assignment Example | Topics and Well Written Essays - 750 words

The Cold War and U.S. Diplomacy - Assignment Example The diplomatic doctrine President Truman followed was that United States would provide political, economic, and military service to all democratic nations which were under the threat of external or internal authoritarian forces (Milestones: 1945-1952. In the initial years, America really protected the interests of its ally Turkey. It was the nature of America to manipulate its foreign policies for its own advantage. However, it never tried to take any undue advantage from the relation with Turkey unlike it did in Afghanistan. American policy after the Truman declaration was always in favor of Turkey. As America never wanted the Soviet Union to grow bigger than it and the communist party to spread to other parts of the world, it decided to support Turkey; both politically and financially. American foreign policy was thus aimed at promoting democracy in its friendly nations. As Carpenter (1999) points out, though Turkey faced some real threats from the Soviet Union like the overpowerin g of the current government with a communist government, Turkey overcame them with American support and moved to a democratic form of government from the single party government that existed. In return to the support and help rendered by the United States during Cold War, Turkey agreed to send its forces to take part in the Korean War. Also, America provided all support to Turkey to become a member of NATO. Turkey became a founding member of the Central Treaty Organization. After these initial years, the relation between the duo began to deteriorate gradually; though for a short period of time. According to Carpenter (1999), the main reason for the break up was the attack by Turkey on Cyprus on the pretext of saving the ruling government from the imminent coup by army. It was an evident breach of the international law and the UN charter. Moreover, it was against the American policy of opposition against aggression because Turkey was pointlessly attacking Cyprus. Though the United St ates was supposed to adopt stringent measures against its alley as the lack of such measures would invite widespread criticism, the American Congress managed to reduce the measures to a meager ban on arm sales to Turkey. Still, the step resulted in creating too much tension and mistrust in the relation between the duo. However, the action of the US can be justified on the ground that Turkey violated the agreements and international law (cited in ‘Turkish invasion and Cyprus occupation’, 2005). When all these tensions ended, the Turkish leaders once again felt the need to be closer to the US. For, an ally like the US was essential to ensure the future security of Turkey in the Middle East.

Governance Essay Example | Topics and Well Written Essays - 1000 words

Governance - Essay Example According to laws and theory, the board of directors working in any nonprofit organization are in charge and responsible for the accountability of the organization’s policies. The individuals working in a nonprofit organization are motivated by the fact that they serve the members of the community. They feel satisfied for serving the community although they may not get as much compensation as the members of other profit organizations. IRS believes that the better the governance of the tax exempted firms the more their compliance will be increased (Schuster, 2011). The IRS has been interested in finding that how non-profit organizations (tax exempted) govern themselves. The theory behind the governance is that well governed organizations often comply with the tax laws, safeguard their assets and smoothly carry forward their charitable mission than the organizations with law control. In 2007, Good governance practiced for 501 (c) (3) was published by IRS which consisted of guide lines for the non-profit organization on how they may increase their accountability, their transparency policies, achieve regulatory compliance and can carry on with their status of tax exemption. IRS released several different materials regarding the topic of governance. Recently IRS is conducting a training session for the IRS personnel who are working in non-profit organizations (Nonprofit Governance and the IRS, 2010). The role of board members in non-profit organizations has been important. To meet the needs of the society and to work within the limited resources the board members must work towards strategies and leadership whose main focus is financial sustainability in the organization. It must be a difficult task for the board members to bring their organization to the speed of the current governance practices (Boards and Governance, 2013). The United States congress and IRS have shown interest in the regulation of the non-profit organizations. The IRS suggests that the acti vities of the tax exempted organizations must be in accordance with its tax exempted purpose. The board of directors of such organizations must be in charge of monitoring that whether or not the organization is working in accordance with the policies and purpose of its establishment. The statement written by the non-profit organization in its application for tax exemption must be clear. The board of director must act within their full capacity for achieving the goals of the tax exempting organizations. Any conflict that may prevail in the organization must be addressed by the board of directors. The boards of directors are the most valuable sources of the tax exempted organization according to the IRS. The policies of the tax exempted organization must be transparent so that it must be held accountable for its actions. The filing of the tax exempted organization with the IRS must be correct and accurate. There must be transparency in their mission of establishment. Certain filings o f the tax exempted organization must be stated on their official website for the purpose of review by the general public. IRS has shown interest in paying closer attention to the fund raising activities of the tax exempting organization. IRS has allocated the duty of the board of directors to regularly monitor all the fund raising

Economic Effects of Water Pollution Essay Example | Topics and Well Written Essays - 2750 words

Economic Effects of Water Pollution - Essay Example In modern times, organic pollution has been on an upward trend to the environment and this is heavy because of the growing population the world is witnessing. One will find in a developed city, that there are so many people that the environment sewerage plants and sewerage plants are not able to take in all the waste and at the same time, function in its usual way. The excess waste becomes food for the algae and this increases their growth rate and thus depletes oxygen in the water. In order to combat diseases and combat the extinction of plant and animal life, which play a big part in the economy, water pollution should be put under control. It has been estimated that it is the lead cause of deaths and diseases in the world. To control water pollution steps need to be taken like the treatment of domestic sewage, which apparently contains 99.9% of pure water, industrial wastewater treatment, done through pollution prevention process, agricultural wastewater treatment through point and non-point source control system and many other ways. This proposal aims at looking at the various ways that can be used to prevent water pollution and to establish the ways that are most efficient and economically viable. This will be done by clearly looking at all the methods that can be used to prevent water pollution and their workability. ... point source pollution and the non-point source pollution, the causes i.e. pathogens, chemical and other contaminants, thermal pollution and also to look into details the different methods that are used to reduce or eliminate water pollution i.e. domestic sewage, industrial wastewater, agricultural wastewater, construction site stormwater, urban runoff (Parks, 2007). During the summer of 1971, at a filtration plant in Chicago south, the filters were blocked with a lot of algae that they had to be removed by hand. The water tasted and smelled like dead fish and this led to the addition of a lot more chlorine in order for the water to be drinkable.

Roles of a father for childhood development

Roles of a father for childhood development Improved Cognitive Abilities The old myths that a father is not important in a childs development as compared to a mothers are false. Recent research studies show that the fathers role is very crucial to a childs development. This persuasive essay will discuss the benefits of a single father and the positive benefits of their active involvement. Being an involved father ensures adequate cognitive ability, supports the childs educational achievements and awareness of general health and social behavior. Fathers are far more than just second adults in the home. Involved fathers-especially biological fathers- bring positive benefits to their children that no other person is as likely to bring. (Popenoe, 1996, p.163). Educational Achievements Recent reports by the National Principles Association Report (2009) state that 71% of all children from fatherless homes are high school dropouts. The impact of a positive biological father or father figure produces better verbal skills and nonverbal skills. These skills in turn help develop things like planning and building (UMPC, 2009). Father absence is a risk factor that makes it more difficult for children to succeed in school. Brisnaire, et al, (1990) further states that access two both parents seemed to be the protective factor for better academic adjustment. Men in general help children transition from a life of financial dependence to independence. Parents should stay involved with their childrens education from elementary school through high school and beyond to help them maximize their academic achievement.Childrens social, physical, and intellectual development benefit greatly from the involvement of fathers, observes Yale child psychiatrist Kyle Pruett (quoted by Judsen Culbreth, What Dads Are Made Of, Readers Digest, June 2005, p. 72A). Childhood Development of Social Behaviors and Well Being Without a father figure in the early stages of childhood can have a negative impact in their social behavior and general health. Children from fatherless homes account for the following statistics: 85% of all children that exhibit behavioral disorders (Center for Disease Control), 71% of pregnant teenagers. (US dept. of Health and Human Services), 63% of youth suicides (US dept of health and human services, Bureau of the Census), 90% of all homeless and runaway children. These statistics alone are very frightening and dishearten. Another important role of a father is the role modeling regarding the interaction with the opposite sex. Being a positive role model can include the development of a strong positive relationship with the childs other parent. They are less likely to abuse their wives or children (Gallagher and Waite, 2000). They are taught to observe how men treat woman. Sometimes they will choose a good companion of proper standards. Fathers also help with filtering out comp anions with bad standard. A fathers presence alone can provide a sense of justice and fairness which teaches the child the consequences of right and wrong as well build independence and confidence. A father tends to oversee their childs relation to the world. They basically focus their attention on what their children will or will not be prepared for or encounter in the world. A father can guide a child through everyday experiences guiding their development of problem solving techniques. Conclusion I can concur growing up as a child without a father and being a part of those statistics. Now that Im a father myself, I play an active role in my childrens lives. I have personally seen an improvement in my sons academic achievements as well his overall well being. He has stated to me that he is more confident and actively seeks me out to discuss problems at school which he did not do when he lived with his mother. Being an involved single father will make a change in that childs life; changing the statistics. Our presence, will give our children a chance to live a positive, healthy, well-balanced respectful life. REFERENCES: Brent, David A. (1995). Post-traumatic stress disorders in peers of adolescent suicide victims: Predisposing factors and phenomenology. Journal of the American academy of child and adolescent psychiatry, 34, 209. Bisnaire,L., Firestone, P., Rynard, D. (1990). Factors associated with academic achievement in children following parental separation. American Journal of Orthopsychiarty, 60 (1). Culbreth,J. (2005). What dads are made of? Readers Digest, p. 72A. Encyclopedia of childrens health: cognitive development (2009). Retrieved Nov.22, 2009 from http://www.healthofchildren.com/C/Cognitive-Development.html#ixzz0XcbcPna Gallagher, M. Waite, L. (2000). The case of marriage. New York: Doubleday. Popenoe, David (1996). Life without father. New York: The free press, 163. Stanton, G. (n.d.). How Fathers matter for a healthy child development. Retrieved Nov. 27, 2009 from the website: http://www.glenntstanton.com/3.html The importance of fathers in the healthy development of children (2006) Retrieved Nov. 19, 2009 from child welfare information gateway website: http://www.childwelfare.gov/pubs/usermanuals/fatherhood/chaptertwo.cfm UPMC (2009, May). The importance of a father. Retrieved Nov. 19, 2009, from http://www.upmc.com/HealthAtoZ/Pages/HealthLibrary.aspx?chunkiid=46224

Kate Chopin :: essays research papers fc

Kate Chopin gives a great deal of thought in her literature to issues that she views as important. She was encouraged not to become a "useless" wife; she was also involved in the idea of becoming an independent woman (LeBlanc 1). Kate Chopin is a well-known American writer. Kate Chopin was born on February 8, 1851, in St. Louis, Missouri. At the age of 53, on August 22, 1904, she died due to cerebral hemorrhage (Hoffman 1-2). Kate is the daughter of Eliza Faris O’Flaherty and Thomas O’Flaherty. Her father was a well-established merchant, who took part in many business investments. He is one of the founders of the Pacific Railroad, and was on the train when it crashed into the Gasconade River, in 1885. Her mother Eliza, was a member of a very elite social group, in their French-Creole community. After Kate’s father passed away, her mother became much more religious, and develops a closer relationship with Kate. Kate also has an older half-brother, George O’Flaherty. He was a Confederate solider in the Civil War, and in 1863 was captured by the Union forces, and dies of typhoid fever while in prison. Kate spent her childhood in St. Louis Missouri (Hoffman 1). Kate Chopin was only married once, and it was to Oscar Chopin, a prosperous cotton farmer. The two were married one June 9, 1870, after a yearlong courtship. Kate and Oscar had six children, five boys and one girl. Jean was born in 1871, Oscar Jr. in 1873, George in 1874, Frederick in 1876, Felix in 1878 and Lelia in 1879(Hoffman 1-2). When his cotton business failed they moved to Cloutierville, a small town in Louisiana. They were married for 12 Â ½ years. In 1882 Oscar died of Malaria, and Kate raised the children on her own. Two years after Oscar died Kate and her children moved in with her mother. Less than a year later her mother died and she was on her own again. Kate received a formal education at the Academy of the Sacred Heart in St. Louis. She enjoys music, re ading, writing, French and German. She became fluent in both languages. Later in her life she continues her education by studying biology and anthropology. Kate Chopin is known to be an extremely smart woman. (Toth 116) In addition to writing the only other career Kate Chopin has, is being a housewife.

E-commerce techniques and marketing strategy

The aim of Boo.com was to develop into the popular online international sports retail company. It was supposed to be a European trademark, but with a worldwide demand. At the beginning it wanted to work for both United States and Europe.The customers of boo.com could be described as ‘young, rich and style- oriented, approximately 19 to 25 year olds. The idea was that internationally the objective market should be anxious about sports and style trademarks supplied by Boo.com.According to the analysis the market for clothes in this field was determined as really huge, so the idea was that having just a small section of this market was enough for boo.com to be triumphant. That time the vision on the size of the market and the source of triumph was pointed out by New Media Age (1999). They stated:â€Å"The $60b USD industry is dominated by Gen X'ers who are online and according to market research in need of knowing what is in, what is not and a way to receive such goods quickly. I f boo.com becomes known as the place to keep up with fashion and can supply the latest trends then there is no doubt that there is a market, a highly profitable one at that for profits to grow from.† (Acito 2006)The development in market was in addition held up by trade forecasters, with judgment foretelling selling in the UK to rise from  £600 million to  £12.5 billion by the year 2005.Nevertheless, New Media Age (2005) did make a note of a number of uncertainties about this marketplace, stating:â€Å"Clothes and trainers have a high rate of return in the mail order/home shopping world. Twenty year olds may be online and may have disposable income but they are not the main market associated with mail order. To date there is no one else doing anything similar to boo.com†. (Acito 2006)The three different marketing strategies used in global marketing are characterized in different ways, have different aims and use different instruments for the achievement of set goals ; moreover, the targeted customer audience in the three cases is also different, and while standardized and concentrated global marketing strategies are somewhat similar, the standardized and differentiated strategies represent the two opposite approaches to the general design of the marketing campaign.However, all three strategies described are successful if properly applied, and the three examples of the global companies have proved this assumption.In reality, the choice of the global marketing strategy, depends on the specific characteristics of the company and the segments it wants to conquer; if all segments are aimed, it is possible to create differentiated campaign with variety of products or standardized campaign appealing to the common interests of consumers; concentrated strategy will work for the conquering one large portion of one or several marketing segments.Boo.com had concentrated marketing strategy. Concentrated global marketing is a kind of the global marketing str ategy which cannot be contrasted to the standardized approach, but which is a different choice for the company which wants to achieve success in one single chosen global market segment.This kind of marketing is used when the organization has large share of market in one or several small segments opposed to the concentration of efforts in the small share of a large segment. (Kotabe & Helsen, 2004)Concentrated global marketing is effective for the companies with the limited resources and for the companies of small business, but for the global companies it is essential to have a high reputation of the product.For example, the acquisition of the EnviroSystems by the Telecomm sales Network in 2006 has become one of the recent examples of the chosen concentrated marketing strategy on the global market; it may be similar to the standardized approach because it does not require changes in the strategy, but while the standardized approach is applied to all segments, the concentrated one is u sed only within the limited marketing segment or several segments. (Phillips, 2007)EnviroSystems is the company specializing in the production of disinfecting products, which presupposes in it that the company should use only concentrated approach due to the very special products it offers.