Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
 SHUMAILA AKBAR (01)
 EMAD FARRUKH (64)
 MUNEEBA SARDAR (29)
 HARIS (31)
 Amir Nawaz (23)
 IMPORTANCE OF INTERNATIONAL FLOW OF
FUNDS.
 BALANCE OF PAYMENT
 FACTORS AFFECTING INTERNATIONAL TRADE
FLOWS
 INTERNAT...
 Economic development
 Foreign exchange earnings
 Market expansion and increase in competition
 Increase in local and ...
 The balance of payments is a statistical
statement that systematically summarizes, for a
specific time period, the econo...
1) CURRENT ACCOUNT:
The summary of flow of funds due to
• purchase of goods or services or
• provision of income on financ...
2) CAPITAL ACCOUNT:
It includes the value of non-produced non-
financial assets that are transferred across
country border...
3) FINANCIAL ACCOUNT:
I. Direct foreign investment
II. Portfolio investment
III. Other capital investment
4) OFFICIAL RESERVE TRANSACTIONS:
The transactions in the form of international
reserve assets such as gold and major curr...
 After World War II, the US experienced a
large balance-of-trade surplus.
 During the last decade, the US has
experience...
1) Inflation
2) National income
3) Exchange rates
4) Government policies
5) Natural factors
6) Political factors
INFLATION:
A relative increase in a country’s inflation
rate
 Increases its imports
 Decreases its exports
 Decrease it...
NATIONAL INCOME:
A relative increase in a country’s income level
will
 Increase its imports
 Decrease its exports
 Decr...
GOVERNMENT POLICIES:
A country’s government can have a major
effect on its balance of trade due to its
policies
 Subsidie...
IMPACT OF EXCHANGE RATES:
Each country’s currency is valued in terms of
other currencies through the use of exchange
rates...
NATURAL CAUSES:
E.g. flood and earth quake
POLITICAL CAUSES:
 Relationship with other countries
 Barriers i.e. tariff an...
The movement of money on international level
for the purpose of investment, trade or
production.
TYPES OF INTERNATIONAL CA...
 Attract new sources of demand
 Exploit monopolistic advantages
 Enter profitable markets.
 React to trade restriction...
1. Changes in restrictions
2. Privatization
3. Potential economic growth
4. Tax rates
5. Exchange rates
1. Tax rate on interest or dividends
2. Interest rates
3. Exchange rates
1) Events that increase international trade:
I. Removal of Berlin wall.1986
II. Single European Act.1980 act 1987 negotiat...
2) Trade Friction:
 International trade and government
strategies.
 Using exchange rate as a policy.
 Outsourcing.
 Tr...
1) INTERNATIONAL TRADE AND GOVERNMENT
STRATEGIES:
 Tariffs and Quotas
 Environmental restrictions
 Child labor laws
 G...
2) OUTSOURCING:
The process of subcontracting to a third party in
another country to provide supplies or services
that wer...
3)EXCHANGE RATE AS A POLICY
4) TRADE POLICIES AND POLITICS
1) International monetary fund
2) World bank
3) World trade organization
4) International financial corporation
5) Interna...
 International Monetary Fund(IMF) was formed
in 1944.
 It consist of 188 members.
OBJECTIVES OF IMF:
 Co-operation amon...
 Established in 1944.
 Primary objectives is to make loans to
countries to enhance economic development.
 Main source o...
 Official Aid Agencies. Development agencies
may be join the world bank in finance
development projects in low income
cou...
 Started operation in 1995 with 81 members.
 Consist of 161 members
 The World Trade Organization (WTO) is the
only glo...
 Established in 1956
 Has 184 member countries, a group that
collectively determines our policies.
 Is a member of the ...
 Part of the World Bank that helps the
world’s poorest countries.
 Established in 1960
 IDA aims to living conditions r...
 It is the single largest source of donor funds
for basic social services in these IDA-financed
operations deliver positi...
International flow of funds
International flow of funds
International flow of funds
Upcoming SlideShare
Loading in …5
×
Upcoming SlideShare
International flow of fund
Next
Download to read offline and view in fullscreen.

6

Share

Download to read offline

International flow of funds

Download to read offline

presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

International flow of funds

  1. 1.  SHUMAILA AKBAR (01)  EMAD FARRUKH (64)  MUNEEBA SARDAR (29)  HARIS (31)  Amir Nawaz (23)
  2. 2.  IMPORTANCE OF INTERNATIONAL FLOW OF FUNDS.  BALANCE OF PAYMENT  FACTORS AFFECTING INTERNATIONAL TRADE FLOWS  INTERNATIONAL CAPITAL FLOW  TRADE ISSUES  AGENCIES FACILITATING INTERNATIONAL TRADE
  3. 3.  Economic development  Foreign exchange earnings  Market expansion and increase in competition  Increase in local and foreign investment  Increase national income and employment  Lower production costs
  4. 4.  The balance of payments is a statistical statement that systematically summarizes, for a specific time period, the economic transactions of an economy with the rest of the world.  It accounts for transactions by businesses, individuals, and the government.
  5. 5. 1) CURRENT ACCOUNT: The summary of flow of funds due to • purchase of goods or services or • provision of income on financial assets or • Transfers of governments SUB SECTIONS: I. Payments for merchandise and services II. Factor income payments III. Transfer payments
  6. 6. 2) CAPITAL ACCOUNT: It includes the value of non-produced non- financial assets that are transferred across country borders, such as:  Patents  Trade marks
  7. 7. 3) FINANCIAL ACCOUNT: I. Direct foreign investment II. Portfolio investment III. Other capital investment
  8. 8. 4) OFFICIAL RESERVE TRANSACTIONS: The transactions in the form of international reserve assets such as gold and major currencies. 5) ERRORS AND OMISSIONS: Measurement errors can occur when attempting to measure the value of funds transferred into or out of the country.
  9. 9.  After World War II, the US experienced a large balance-of-trade surplus.  During the last decade, the US has experienced balance-of-trade deficit.  US current account balance for 2013 was -$400.3 billion and in 2014 -$410.6 billion.  US capital account balance in 2013 was - $5,383.0 billion and in 2014 was -$6,915.3 billion .
  10. 10. 1) Inflation 2) National income 3) Exchange rates 4) Government policies 5) Natural factors 6) Political factors
  11. 11. INFLATION: A relative increase in a country’s inflation rate  Increases its imports  Decreases its exports  Decrease it’s current account
  12. 12. NATIONAL INCOME: A relative increase in a country’s income level will  Increase its imports  Decrease its exports  Decrease it’s current account
  13. 13. GOVERNMENT POLICIES: A country’s government can have a major effect on its balance of trade due to its policies  Subsidies for exporters  Restrictions on imports  Lack of restrictions on piracy
  14. 14. IMPACT OF EXCHANGE RATES: Each country’s currency is valued in terms of other currencies through the use of exchange rates.  Appreciation of home currency  Depreciation of home currency
  15. 15. NATURAL CAUSES: E.g. flood and earth quake POLITICAL CAUSES:  Relationship with other countries  Barriers i.e. tariff and quota
  16. 16. The movement of money on international level for the purpose of investment, trade or production. TYPES OF INTERNATIONAL CAPITAL FLOW:  Direct foreign investment  International portfolio investment
  17. 17.  Attract new sources of demand  Exploit monopolistic advantages  Enter profitable markets.  React to trade restrictions.  Diversify internationally.  Fully benefit from economies of scale.  Use foreign factors of production.  Use foreign raw materials and technology.
  18. 18. 1. Changes in restrictions 2. Privatization 3. Potential economic growth 4. Tax rates 5. Exchange rates
  19. 19. 1. Tax rate on interest or dividends 2. Interest rates 3. Exchange rates
  20. 20. 1) Events that increase international trade: I. Removal of Berlin wall.1986 II. Single European Act.1980 act 1987 negotiated still 1992 III. North American Free Trade Agreement (NAFTA).1993 IV. General Agreement on Tariffs and Trade (GATT)1993 result of uruguay round started in1986 across 117 countries V. Inception of the Euro.1999.other transaction 2001 completely replaced 2002. VI. Expansion of the European Union.2004. Bulgaria and Romania 2007. VII. Central American Trade Agreement (CAFTA)2006.dominican republic central American countries and Caribbean nation.
  21. 21. 2) Trade Friction:  International trade and government strategies.  Using exchange rate as a policy.  Outsourcing.  Trade policies and politics.
  22. 22. 1) INTERNATIONAL TRADE AND GOVERNMENT STRATEGIES:  Tariffs and Quotas  Environmental restrictions  Child labor laws  Govt. allow firms to offer bribes to large customers for industrial development.  Subsidies to exporters  Tax break
  23. 23. 2) OUTSOURCING: The process of subcontracting to a third party in another country to provide supplies or services that were previously produced internally.  Impacts of outsourcing on value of MNC’s.  Criticism on outsourcing.  Managerial decisions.
  24. 24. 3)EXCHANGE RATE AS A POLICY 4) TRADE POLICIES AND POLITICS
  25. 25. 1) International monetary fund 2) World bank 3) World trade organization 4) International financial corporation 5) International development association 6) Bank for international settlements 7) Organization for economic corporation and development 8) Regional development agencies
  26. 26.  International Monetary Fund(IMF) was formed in 1944.  It consist of 188 members. OBJECTIVES OF IMF:  Co-operation among the countries on international monetary issues.  Stability in exchange rates.  Correct imbalances of international payments.  Promote free trade.
  27. 27.  Established in 1944.  Primary objectives is to make loans to countries to enhance economic development.  Main source of funds is the scale of bonds and other debt instruments to private investors and governments. The World Bank has a profit-oriented philosophy.  World bank provided a small portion of financing needed by developing countries.  To spread its funds by entering into co- financing
  28. 28.  Official Aid Agencies. Development agencies may be join the world bank in finance development projects in low income countries.  Export credit agencies. the world bank cofinaces some capital intensive projects that are also financed through export credit agencies  Commercial banks. The world bank has joined with commercial banks to provide financing for private-sector development.
  29. 29.  Started operation in 1995 with 81 members.  Consist of 161 members  The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.  The goal is to help producers of goods and services, exporters, and importers conduct their business
  30. 30.  Established in 1956  Has 184 member countries, a group that collectively determines our policies.  Is a member of the World Bank Group  Largest global development institution focused exclusively on the private sector in developing countries.  Allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities
  31. 31.  Part of the World Bank that helps the world’s poorest countries.  Established in 1960  IDA aims to living conditions reduce poverty by providing loans (called “credits”) and grants for programs that boost economic growth and reduce inequalities.  Largest sources of assistance for the world’s 771 poorest countries, 39 of which are in African countries.
  32. 32.  It is the single largest source of donor funds for basic social services in these IDA-financed operations deliver positive change for 2.8 billion people, the majority of whom survive on less than $2 a day.
  • ArsalRajpoot1

    Jun. 10, 2020
  • TufailAbbas4

    Dec. 8, 2019
  • hariharanvimalraj

    May. 7, 2019
  • PoojaVerma262

    Mar. 12, 2019
  • MeMyint

    Feb. 6, 2017
  • vandanabothra

    Nov. 9, 2016

presentation slides on international funds flow prepared by the group members in a new way thanks guys for providing such a beneficial, knowledgeable slides.

Views

Total views

4,075

On Slideshare

0

From embeds

0

Number of embeds

12

Actions

Downloads

220

Shares

0

Comments

0

Likes

6

×