Capital Account Convertibility - Free Essay Example

Sample details Pages: 4 Words: 1053 Downloads: 5 Date added: 2017/09/12 Category Advertising Essay Did you like this example? Capital Account Convertibility. Should India adopt full convertibility? Capital Account Convertibility-or a floating exchange rate-is a feature of a nations 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 claims 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. Don’t waste time! Our writers will create an original "Capital Account Convertibility" essay for you Create order 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 action:[6] 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 amount (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 corrupt officials, local businessmen had no convenient way to handle large cash 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 Committees 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 Ajit 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-charge, 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 respect of the ease with which transactions at the level of authorized entities are conducted, so as to make liberalisation more meaningful. Ensure that guidelines and 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 associations, representative bodies or individuals to facilitate its work. It will make recommendations on an ongoing basis to rectify the anomalies and remove operational impediments. The processes are expected to be completed by December 4, 2006. Current account convertibility allows free inflows and outflows for all purposes other than for capital purposes such as investments and loans. References: https://inhome. rediff. com/money/2006/sep/04faq. htm https://en. wikipedia. org/wiki/Capital_Account_Convertibility https://rbidocs. rbi. org. in/rdocs/PublicationReport/Pdfs/72250. pdf

Political Institutions Effect on Societies Essay - 893 Words

Political institutions have been part of humanity since the beginning of societies. Institutions have developed in different organizational performances and have shaped in what they are nowadays. Institutions have shown us that they are necessary and essential for all societies around the world. We never realize how important and how essential they are for our daily lives, but more than that, we never realize how institutions affect or influence political outcomes. Whether institutions are federalist or centralists, they always vary in the types of outcomes and shortcomings, or if local governments function better than a federal government, or if state governments are better. The implications effects of decentralization for political†¦show more content†¦Also enhances checks and balances and power at the center. It also provides opportunities in federal three tier systems, opportunities at two of these tiers for parties and factions in opposition at the center to exercise some measure of political power or contingent consent. There’s also a risk of pitfalls of decentralization, entrench or create authoritarian enclaves, permit intolerance of certain minorities, exacerbate geographical inequalities , foster redundancy and inefficiencies , stimulate ethnic and national consciousness, which is core in this process. In Federalism, local democracy requires decisional autonomy institutionalism local autonomy in other words decentralization needs a constitution. Some of the advantages of federalism is that it provides better representation to minority groups, potentializes, stimulates economic growth which I believe is the most important, generate interethnic competition, and generates cooperation. On the other hand, Will Kymlicka asserts that federalism provides the most appropriate mechanism for accommodations for the increasingly multicultural nature of modern societies specially countries that have adopted federalism in order to accommodate ethno cultural pluralism and national minorities. The author deducts that federalism is a political system, which includes a constitutionally entrenched division of powers between a central government and two or more subunits, defined on sovereign authority over certainShow MoreRelatedAsfasf754 Words   |  4 PagesAnalyze how technological innovation has affected economic development and society. c. Explain how interpretations of the Constitution and debates over rights, liberties, and definitions of citizenship have affected American values, politics, and society. d. Explain how interpretations of the Constitution and debates over rights, liberties, and definitions of citizenship have affected American values, politics, and society. 2. 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It mostly depends on the people, who use them, and what purposes they pursue. Information technologies have radically changed the work of social institutions, namely police, medical institutions, educational institutions, etc. Development and improvement of the qualityRead MoreIssues Of Inequality And Poor Healthcare Essay1694 Words   |  7 Pagesdemocracy, and eludes a certain standard of fairness. Social mobility is the ability for individuals or families to move between social classes. Heavily rooted inequality inhibits such movement due to the fact that the sects of society become so entrenched in their place in society, that those who have power work to retain their power, and as that occurs, those without power continue to wallow in poverty. Continuing with such suppression, the lack of mobility of lower classes exhibits a direct contradictionRead MoreThe Resource Curse: Democracy and the Developing World 1190 Words   |  5 Pagesresource wealth tend to have political crises. This paradox is called the resource curse- the political counterpart of t he infamous Dutch disease (Lam et al., 2002)*. In this paper I will argue how this phenomenon not only impedes the development of liberal democracies in non-democratic regimes, but also how it actively destroys liberal values in developing democracies. In specific, I will discuss how political instability, socio-economic disparities and political appeasement produced by resourceRead MoreThe Concept of Nationalism in the 20th and 21st Century1228 Words   |  5 Pagesï » ¿Nationalism in the 20th and 21st Century: The concept of nationalism is in essence an odd organization that has had significant impacts in world history through shaping the political and social aspects of the society. As an important aspect in the development of the society, the concept of nationalism has basically been analyzed based on its impact on the emergence of nation-states across the globe. In most cases, these analyses have been conducted to determine the influence of nationalism onRead MoreLiterary And Cultural Theory During The Modern And Postmodern Period1539 Words   |  7 Pagestheory during the modern and postmodern period. The way we understand subjectivity effects the way we understand the world around us, whether the subject is viewed in the Cartesian manner as a fixed entity, with a pre-existing nature that is not affected by the discourses that surround the it, or if we view the subject as one produced in and through the forces of power available in the time period, whether they be political, social or linguistic. The dominant model of understanding the subject up till

Human Resource Management and Organization Strategy

Question: Discuss about the Human Resource Management and Organization Strategy. Answer: Introduction: The issue of staff turnover has serious complications for the company. It means that the company spends extensive resources on selection and recruitment, training and motivation, only for the investment to be lost when employees decide to leave. At the same time, employee turnover represents a significant loss of expertise and knowledge in the organization, assets that will be needed to ensure the organizations success. The reasons for turnover may range from employees securing better paying jobs elsewhere, terminating employees of some who may have discipline issues, and retirement. However, others are leaving because they are not happy at the organization. They may feel that the organization does not work for them, or believe that their chances are better elsewhere (Hitt, Bierman, Shimizu Kothar, 2001). High turnover is not only matter of losing skills and the investment on each employee. It also leaves a negative effect on other employees. Employee turnover has a direct and negative effect on morale, on top of removing valuable skills from the workplace. When influential employees leave the company, those who remain may feel demoralized. They may also lack the skills that the leaving employees had, making it a bit less likely that the set goals will be met as well as they would have been. Employee turnover, therefore, affects the overall strategy of an organization, as well as the bottom-line (Hitt, Bierman, Shimizu Kothar, 2001). Poor morale and lack of the requisite skills is felt across the business, but is most acute in the customer facing departments, such as customer service. These departments need to be highly motivated and well versed in the ways of the organization so that they can provide clients with high quality solutions. Lacking this, they are likely to fail in satisfying their customers with the solutions needed. This will likely lead to loss of valuable business, and further complicate achievement of strategic objectives (Hitt, Bierman, Shimizu Kothar, 2001; Kankousky, 2016). Recommendations It is recommended that in view of the foregoing, the organization should overhaul its recruitment process. It should be undertaken by the organization collectively, to ensure there is consensus, and that only the right candidates are chosen. Additionally, the motivation process should be geared towards ensuring that the new and existing employees are highly motivated to perform their tasks. This will only happen if management appreciates the important role of employees in meeting objectives. Additionally, employees who perform better should be rewarded with cash bonuses or salary increases where applicable. This will motivate them and other to work harder, despite anything else going on (Kankousky, 2016). The recommendations are relevant to the issue currently faced. The organization is in danger of losing its competitiveness in the market due to poor customer service. The loss of business will have a direct effect on profitability and on the companys ability to compete with other companies. In addition, staff motivation is of critical importance. Employees will need to be shown that they own a stake in service delivery to clients. Their good performance in this will result in monetary rewards, among other incentives. This will spur their initiative. The recommendations, therefore, take the important factors into consideration and are relevant to the issues faced by the organization (Kankousky, 2016). References Hitt, M. A., Bierman, L., Shimizu, K., and Kochhar, R. (2001). Direct and Moderating Effects of Human Capital on Strategy and Performance in Professional Firms: A Resource - Based Perspective, Academy of Management Journal, 44(1): 1328. Kankousky, Michelle, (2016).Spur Productivity and Retention With a More Strategic New Employee Onboarding Process, Insperity, https://www.insperity.com/blog/spur-productivity-and-retention-with-a-more-strategic-new-employee-onboarding-process/

The Stranger Essays - Literature, Fiction, Absurdist Fiction

The Stranger The Stranger In The Stranger, Albert Camus portrays Meursault, the book's narrator and main character, as aloof, detached, and unemotional. He does not think much about events or their consequences, nor does he express much feeling in relationships or during emotional times. He displays an impassiveness throughout the book in his reactions to the people and events described in the book. After his mother's death he sheds no tears; seems to show no emotions. He displays limited feelings for his girlfriend, Marie Cardona, and shows no remorse at all for killing an Arab. His reactions to life and to people distances him from his emotions, positive or negative, and from intimate relationships with others, thus he is called by the book's title, "the stranger". While this behavior can be seen as a negative trait, there is a young woman who seems to want to have a relationship with Meursault and a neighbor who wants friendship.He seems content to be indifferent, possibly protected from pain by his indifference. Meursault rarely shows any feeling when in situations which would, for most people, elicit strong emotions. Throughout the vigil, watching over his mother's dead body, and at her funeral, he never cries. He is, further, depicted enjoying a cup of coffee with milk during the vigil, and having a smoke with a caretaker at the nursing home in which his mother died. The following day, after his mother's funeral, he goes to the beach and meets a former colleague named Marie Cardona. They swim, go to a movie, and then spend the night together. Later in their relationship, Marie asks Meursault if he wants to marry her. He responds that it doesn't matter to him, and if she wants to get married, he would agree. She then asks him if he loves her. To that question he responds that he probably doesn't, and explains that marriage really isn't such a serious thing and doesn't require love. This reaction is fairly typical of Meursault as portrayed in the book. He appears to be casual and indifferent about life events. Nothing seems to be very significant to him. Later on in the book, after he kills an Arab, not once does he show any remorse or guilt for what he did. Did he really feel nothing? Camus seems to indicate that Meursault is almost oblivious and totally unruffled and untouched by events and people around him. He is unwilling to lie, during his trial, about killing the Arab. His reluctance to get involved in defending himself results in a verdict of death by guillotine. Had Meursault been engaged in his defense, explaining his actions, he might have been set free. Meursault's unresponsive behavior, distant from any apparent emotions, is probably reinforced by the despair which he sees open and feeling individuals experience. He observes, for example, Raymond cheated on and hurt by a girlfriend, and sees his other neighbor, Salamano, very depressed when he loses a dear companion, his dog. Meursault's responses are very different, he doesn't get depressed at death nor does he get emotionally involved. He appears to be totally apathetic. Thus, he seems to feel no pain and is protected from life's disappointments. Sometimes a person like Meursault can be appealing to others because he is so non-judgmental and uncritical, probably a result of indifference rather than sympathetic feelings. His limited involvement might attract some people because an end result of his distance is a sort of acceptance of others, thus he is not a threat to their egos. Raymond Sintes, a neighbor who is a pimp, seems to feel comfortable with Meursault. Sintes does not have to justify himself because Meursault doesn't comment on how Sintes makes money or how he chooses to live his life. Even though Meursault shows no strong emotions or deep affection, Marie, his girlfriend, is still attracted and interested in him. She is aware of, possibly even fascinated by, his indifference. Despite the seemingly negative qualities of this unemotional man, people nevertheless seem to care for him. There are individuals who, because of different or strange behavior, might be outcasts of society, but find, in spite of or because of their unconventional behavior, that there are some people who want to be a part of their lives. Meursault, an asocial person is such an individual. His behavior, while not antagonistic or truly antisocial, is distant, yet it does not get in the way of certain relationships. While there are some people who might find such relationships unsatisfying and limited, Meursault and those he is connected to seem to be content with their