Rk.educationalnotes

A mode of entry into the international business is the channel which organisation employ to get entry into new international market. Two mode of entry Import ( Equity mode) and Export (Non- equity mode) - Direct export and Indirect export. (A) Direct export: Direct export represent most basically mode of exporting, capitalising on economic of scale  production concentrated in home country and affording better control over distribution. Direct export works the best of the volume is small. Large volume on export may trigger protectionism. There are two types of direct export. (a) Sales Representative: Represents foreign suppliers of manufacture goods in their local market for an established commission on sales provides support and service to manufacturer regarding local advertisement local sales, presentation etc. (b) Import Distribution : Purchase product in their own right and resale them in their local market them in their local market to wholesale, retailer or both. Import Distributi

There are some difference between Domestic and International business. In the era of currency, interest rate, inflation, taxation, system, government regulations, language, socio political economic barriers.             In the matter of payment, a buyer of foreign goods must pay for them in a currency different from his country. And that which he can comment into his own country's.  Example: An Indian importer of American goods need to make payments in dollars as and not Rs. Once commodity cross across the border becomes subject to different set of laws. Therefore, In business managerial process need not be altered and refined with respect to different environmental variables for change.  Domestic Market and International Market  (i) Single market and sub market  (i) Multiple market ((ii) Awarness for market is high therefore one can task into the market without any marketing research.  (ii) Imperative (iii) The control is over single set up. Therefore, administration is relatively

The shift towards more integrated and independent world economy. It makes the world's economy of one country dependent on another. That is business dependent on another.  Reason for Globalization: (1) The wide spread growth in the world market makes it increasingly difficult for any country to avoid external impact on its economy. Example: Oil share fluctuating in terms of barrels. (2) Massive flow and push exchange rate that accurately reflect competitive relationship among national economic policies exchange value up and down. Global integration in trade, investment and factors of production, technology and communication and advancement has been fixed world's economy together which are basically gone through communication. Effect of globalisation (i) Globalization of market. (ii) Globalisation of product. (i) Globalization of market: -Managing of distinctively separate market into a global market place. - Converse in taste and preference of different people of the world. - Fr

Since of nationalisation of 14 commercial banks in1969, the Indian banking system has made tremendous progress both in terms of deposite mobilisation and branch expansion. Aggregate deposit of all banks rose from about 15 % of is 1969 to 79.8% in 2003. The total number of bank branches went up from 8262 to 66514 over the period of these about 50% were in rural areas in 2003 as against less than 25% in 1969. Besides performing ordinary banking services. Indian banks also started innovative banking thereby diversifying their activities in new directions.        Despite all this they failed to provide reliable efficient and low cost services. Both productivity and profitability of banks declined and especially the public sector banks become a burden on excheques to overcome the defects of the made a number of suggestions same of them have been implemented from 1991-1992 onwards. They are enumerated as under (1) Capital Adequacy Norms: To avoid risk the RBI laid down capital adequacy norms

Finance is the life blood of a business. The business cannot run efficiently if it's doesn't have adequate finance to meet its req. The financial requirement of business can be classified into two categories. (i) Short term financial requirements. (ii) Long term financial requirements. Short term funds are required for meeting working capital needs. They are usually required for a period upto 1 year. They are raised from sources which can provide only for a short period quickly and at reasonable cost. The requirement of these funds is usually met by taking short term loans or getting the bills discounted from the commercial banks.       The long term funds are required to a great extent for meeting the fixed capital requirements of the bu. They are required for a period exceeding 1 year. They are sometimes classified as: (i) Intermediate or medium term funds. (ii) Long term funds.   The former category includes funds required for a period of exceeding 5 years. These funds are r

Globalization of the banking industry and increased competition have exposed our commercial banks to a number of challenges. Accumulation of NPAs and their write off require risk bearing capacity. Hence 8% capacity to the risk weight assets were introduced as prudential norm. Increased capital adequacy rate would not only enhance equity base also is a prudential norm on credit exposure.                 The economy is projected to grow at 6.8%. As the economy develops and production base widens, in the absence of a well developed capital market, there is a having lending on the banking system for credit. Despite of reforms the banking industry face similar liquidity or credit crunch and banks heavily rely on high cost inter call money market and certificates of deposits for their requirements thereby squeezing banks spread.             Given the high growth plateau of the economy, higher credit off take coupled with liquidity or credit crunch on account of relatively low growth of depos