Beruflich Dokumente
Kultur Dokumente
Presented by :Samik Acharya Mayuresh Amle Sagar Ghule Sudeep Kulkarni Tushar Pande Sumeet Sonawane
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BOP accounts
Current account The difference between a nation's total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. Capital account A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public and private international investments flowing in and out of a country. Reserve account Foreign reserve with any country held by the Central bank of the country.
Short term capital sources are demand deposits , bills, overdrafts, commercial and financial paper and acceptances, loans & commercial book credits etc.
Long term (More than 1 year duration):
Establishment/Acquisition of income generating assets in a foreign country over which investing firm has control. a) Foreign Direct investment b) Portfolio investment c) Assistance from Government and Institution.
Portfolio Capital
Refers to purchase of shares & debentures of business concerns of a country by foreigners Simply investments- no control over management Large amounts of portfolio investments flow between the worlds stock markets and other financial centers, transferring large amounts of hot money across national frontiers depending on investor confidence Exchange rate risks involved in a big way Cumulative Amount of FIIs into India from 2000 to 2012 has been approx. US$ 117.57 billion
(Source: Indiainfoline)
Government/Institutional Loans
Governments of advanced countries give loans to finance projects in a developing countries. International FIs like World Bank, ADB also give financial assistance to developing countries. For example, the total amount of loans disbursed by the WB to India stands at US$ 14.915 Billion as on 31/5/2012. (World Bank Website)
Foreign Aid
May be received as loans and grantsLoans qualify as aid only to the extent that they bear a concessional rate of interest and have longer maturity periods than commercial loans
PUSH FACTORS
PULL FACTORS
Openness of domestic financial markets Liberisation of FDI Credible structure Macroeconomic policies Stabilization policies Ability of economy to absorb shocks of changes in International terms of trade
PUSH FACTORS
Lower foreign interest rate Recession abroad Herd mentality in international capital market
Interest rate
Interest rate Integration of financial and other market Growing pool of international financial capital
Interest rate Integration of financial and other market Growing pool of international financial capital Liberisation of capital account transactions and move towards flexible exchange rate regime US $ 7.1 billion in 1990-91 to US $ 134.0 billion in 2010-11.
Interest rate Integration of financial and other market Growing pool of international financial capital Liberisation of capital account transactions and move towards flexible exchange rate regime Stability
Government policies
Government policies Social and economic overheads Infrastructure facilities Labour policies Market potential
Government policies Social and economic overheads Credit rating Speculation Profitability
FDI (Cr.)
R R 9 CO 8 . =0 N
IO 2009 T EL A
120000 98664 100000 85700 70630 80000 60000 40000 19361 14932 12117 17138 24613 12645 20000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009
Balance Of Payment
Transfer of technology
11 % growth rate for Telecom
Reduces the effectiveness of monetary policy High cost of foreign capital Inappropriate technology
Objectives of FCAC
To facilitate higher economic growth through higher investment by minimising cost of both equity and debt capital To improve the efficiency of financial sector through greater competition ,thereby minimising intermediation costs To provide opportunities for diversification of investments by residents
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