foreign

Indian celebrity can connect foreign brand with the Indian consumer with great effect. S. Kumar's has Big ' B' is brand Ambassador for Reid & Taylor, as it will enable them to Indianise the brand personality.,Shahrukh Khan the Bollywood superstar is brand ambassador for Tag Heuer. The core...

Foreign interest The growth statistics combined with the government's decision to increase the foreign direct investment cap in the sector to 74 per cent is generating interest among global investors. While the government expects over US$ 800 million investment from foreign telecom companies in...

Foreign Direct Investment FDI or Foreign Direct Investment refers to the investment of foreign currency and other valuable resources by Multinationals into the host country. FDI allows the host country to earn valuable foreign exchange that can be used for future imports or to pay off existing...

The Reserve Bank of India has the responsibility to maintain the official rate of exchange. According to the Reserve Bank of India Act of 1934, the Bank was required to buy and sell at fixed rates any amount of sterling in lots of not less than Rs. 10,000. The rate of exchange fixed was Re. 1 =...

Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative. New rules announced by the Reserve Bank of India for the foreign banks in India in this...

DEFINITION OF FOREIGN DIRECT INVESTMENT FDI is the process whereby residents of one country (the home country) acquire ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in another country (the host country). The World Investment...

FDI is seen as a means to supplement domestic investment for achieving a higher level of economic growth and development. FDI benefits domestic industry as well as the Indian consumers by providing opportunities for technological up-gradation, access to global managerial skills and practices...

FOREIGN EXCHANGE SWAPS A basic foreign exchange swap is the simultaneous purchase and sale of one currency for another, where the two contracts have different dates (different positions of same or different amount on different dates). Let’s study the following illustration. An export oriented...

The main foreign exchange linked derivatives are currency forwards, currency futures, currency options and currency swaps and combination of the above. For borrowers, access to the currency derivatives ensures that they have access to the lowest cost capital markets around the world. The...

A good foreign exchange policy is critical to the sound risk management of any corporate treasury. Without a policy decisions are made ad-hoc and generally without any consistency and accountability. Its important for treasury personnel to know what benchmarks they are aiming for and its...

The days of corporate treasuries being aggressive profit centers are long gone although there are a few that still survive. These days Corporate are far more conservative with foreign exchange risk management and have reasonably well defined guidelines for the management of Forex risk. At a...

FOREIGN EXCHANGE EXPOSURE Foreign exchange risk is related to the variability of the domestic currency values of assets, liabilities or operating income due to unanticipated changes in exchange rates, whereas foreign exchange exposure is what is at risk. Foreign currency exposures and the...

The main players in foreign exchange markets are as follows:  CUSTOMERS The customers who are engaged in foreign trade participate in foreign exchange markets by availing of the services of banks. Exporters require converting the dollars in to rupee and importers require converting rupee...

In India, foreign exchange has been given a statutory definition. Section 2 (b) of Foreign Exchange Regulation Act, 1973 states: ‘Foreign exchange’ means foreign currency and includes:  All deposits, credits and balances payable in any foreign currency and any drafts, traveler’s cheques...

Let us consider a case where a Japanese company exports electronic goods to USA and invoices the goods in US Dollars. The American importer will pay the amount in US dollars, as the same is his home currency. However the Japanese exporter requires Yen means his home currency for procuring raw...

LIMITATION OF FOREIGN DIRECT INVESTMENT. Foreign direct investment is not free from limitations. Developing countries like India has very little choice when it comes to opening the different sectors of the economy to foreign investment. A case in point is the opening up of the consumer...

Private foreign investment plays an important role in the economic development of the recipient countries. 1. Private foreign investment goes directly into capital formation and thus it constitutes a net addition to investible resources in the recipient country. Thus it helps in pushing up...

ENTRY STRATEGIES FOR FOREIGN INVESTORS STARTING OPERATIONS IN INDIA A foreign company planning to set up business operations in India has the following options AS AN INDIAN COMPANY A foreign company can commence operations in India by incorporating a company under the Companies Act,1956...

POLICY ON FOREIGN DIRECT INVESTMENT (FDI) 1. Sectors prohibited for FDI I. RETAIL TRADING (EXCEPT SINGLE BRAND PRODUCT RETAILING II. ATOMIC ENERGY III. LOTTERY BUSINESS IV. GAMBLING AND BETTING 2. All Activities/ Sectors would require prior Government approval for FDI in the following...

AN OVERVIEW The Government of India has recently undertaken a comprehensive review of the FDI policy and associated procedures. As a result, a number of rationalization measures have been undertaken which, inter alia include, dispensing with the need of multiple approvals from Government and/or...