24Oct 2018 by Reese Bannister

7 Most Important Functions of World Bank

Currency
The functions performed by the World Bank follow from the objectives set out in its articles when it was formed. They can be summed up as follows.(a) It grants loans for long and medium terms: Loans may be divided in two types: Reconstruction Loans and Development Loans. The first is given to countries” damaged by the last war, the second to all countries who require such loans for development purposes.(b) The bank gives loans to governments and also to private borrowers (to industrial concerns for particular projects). In the later case the bank demands a guarantee from the government, the central bank and similar organizations of the region in which the project is to be undertaken. The bank generally does not provide the entire cost of a private project. The…
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24Oct 2018 by Reese Bannister

6 Important Functions of WTO – Explained!

Decision Making
The WTO, which began operation in 1995, is an improvement over GATT, i.e., General Agreement on Tariff and Trade. GATT was a forum where members met occasionally to solve world trade problems whereas WTO is a chartered trade organization based in Geneva, Switzerland.The WTO has a legal status and enjoys privileges that are same as the IMF and the World Bank. There were 76 Governments which became members of the WTO on its first day and by 1996 this number increased to 145. India is one of the founder members of WTO. At present the number has gone upto (147) including Chaina. ADVERTISEMENTS: The main function of WTO are: (1) To act as a main body to promote multilateral trace system. Image Source: cdn.yourarticlelibrary.com(2) Cooperative with other international bodies in…
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24Oct 2018 by Reese Bannister

Difference between FERA and FEMA (Foreign Exchange Regulation Act and Foreign Exchange Management Act)

Management
FERA (Foreign Exchange Regulation Act) was passed in 1947 which was amended in 1973. The new FERA came into force from 1.1.1974. The objective was the conservation of India’s Foreign Exchange reserves, judicious use of foreign exchange, using mainly in these sector which require foreign technol­ogy.Transactions in foreign exchange were absolutely prohibited excepting in certain selected sectors. Every foreign company had to maintain Indian share of 26 percent.FERA was repealed in 1998 and Foreign Exchange Management Act (FEMA) was enacted. No unauthorised person would be allowed to deal in foreign exchange. The authorised person could sell; draw foreign exchange from any authorised person on current Account transaction, subject to approval of R.B.I. Image Source: jhunjhunwalas.files.wordpress.com ADVERTISEMENTS: RBI has exclusive authority to regulate supply; use of foreign exchange, R.B.I, if thinks…
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24Oct 2018 by Reese Bannister

7 Most Important Objectives of Public Expenditure in India

Construction
Rapid economic development requires huge expenditure to be incurred in the various sectors of the economy. As the private sector is usually hesitant and unwilling to invest huge amounts because the returns from such investments are either uncertain or long delayed, it is public expenditure which plays the crucial role in eco­nomic development (especially) in underdeveloped economy.The objectives of public expenditure are the following: 1. Provide social goods: The theory of social goods is of prime importance to the economies of the public sector. The market economy, if certain conditions are met, enables an efficient use of resources for providing private goods. ADVERTISEMENTS: However, when it comes to providing public or social goods (e.g. parks roads, bridges, free or subsidised educational facilities), the market economy often runs into trouble. Social…
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24Oct 2018 by Reese Bannister

What are the Merits and Demerits of Indirect Taxes? – Explained

Budget
Merits and Demerits of Indirect Taxes are explained below: Merits of Indirect Taxes: 1. Indirect taxes have a great merit of convenience. They are paid in small amounts and at intervals instead of in one lump-sum.2. The burden of an indirect tax is less felt as it is hidden in the price of the commodity. ADVERTISEMENTS: 3. Indirect taxes can be elastic if they are imposed on articles having inelastic demand.4. Indirect taxes have a wide area of functioning. It makes the tax system broad based as they are paid by all classes of people. Demerits of Indirect Taxes: 1. The main demerit of indirect tax is that they are often inequitable. If imposed on commodities of common consumption, the burden of taxation on the poorer section may be heavy.…
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23Oct 2018 by Reese Bannister

13 Major Recommendations of Kelkar Committee on Direct and Indirect Taxes (India)

Government
The government appointed a committee under the chairmanship of Mr. Kelkar to examine the structure of direct and indirect taxes and to make recommendations for making the tax system more broad-based, elastic and simplified.Major recommendations of this committee are the following:a. Income tax exemption limit be raised to Rs. 1 lakh from Rs. 50,000 presently. ADVERTISEMENTS: b. Income tax rates proposed at 20% for earnings of Rs. 1-4 lakh and 30% for over Rs. 4 lakhs.c. Tax threshold for senior citizens and widows at Rs. 1.5 lakh. Image Source: c1.staticflickr.comd. Abolition of dividend tax, long-term capital gains tax and wealth tax. ADVERTISEMENTS: e. All exemptions on savings and other income, except for handicapped, be lifted.f. Phasing out tax breaks on home loans in 3 years.g. No standard deduction for salaried…
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23Oct 2018 by Reese Bannister

What are the requirements for listing your company in OTCEI?

Finance
SEBI guidelines (1992) on public issue envisage the listing of securities on any stock exchange or OTCEI.OTCEI is a company incorporated in 1990 under the Companies Act. It became operational on September 1992. ADVERTISEMENTS: OTCEI is a recognized stock exchange under the securities Contract (Regulation) Act, 1956. The objective of the OTCEI is to help companies raise finances from capital in a cost effective manner and provide a convenient and effective avenue of capital market investment for investors at large.Listing on OTCEI may be sought by companies with an equity capital of less than Rs. 10 Crore or closely held companies wanting to attain a listed company status and company assisted by venture capitalists. Image Source: theemergingworld.in Listing Requirements of OTCEI: a. The minimum issued share capital of a company…
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23Oct 2018 by Reese Bannister

Essay on the Current Scenario of Employment Pattern in India

Workforce
The growth of employment in India suggests that there has been a decline in the rate of growth of employment at current daily status basis, from 2.7 percent in 1983-1994 per annum to 1.07 percent per annum in 1993-94 to 2000. The growth rate of GDP on the contrary was higher with respect to growth rate of employments. There has been a decline in the employment intensity.The 55th Round of NSSO survey suggests that Growth Rate of employment was associated with a decline in labour force. The decline in the absolute number of unemployment (expressed in terms of unemployed as a percentage of labour force) increased during 1994-2000.Agriculture is the largest sector, where most of the people are employed. During 1994-2000, there was a near stagnation in the growth rate…
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23Oct 2018 by Reese Bannister

13 Important Recommendations by Second Labour Commission (India)

Management
In view of economic liberalisation of labour laws. Government of India set up 2nd National commission of Labour under chairmanship of Mr. Ravindra Varma (a) to suggest measures about rationalisation of labour laws (b) to suggest”umbrella” legislation for ensuring a minimum level of protection to the workers in the organised sector.NCL suggested following definition for “Rationalisation”—In our understanding rationalisation means only making laws more consistent with the context more consistent with each other, less cum­bersome, simple and more transparent.”The commission believes the level of wages depend on economic efficiency of an undertaking.” The commission further adds “workers have to be interested in productivity as the management is.” Image Source: securityaffairs.co ADVERTISEMENTS: The interest on work depends upon proper inspiration from management how management can impose upon the workers work, ethics…
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23Oct 2018 by Reese Bannister

Marketing of Pharmaceutical Products in India (30 Important Suggestions)

Business
After the thorough understanding of pharmaceutical marketing the suggestions and recom­mendations made by the researcher are compiled as;1. Researcher suggest that to improve ethical sale of pharmaceutical products that is con­tributed through the prescriptions of consulting physician (doctors) is achieved through identified three major thrust areas as sales force (including medical representatives, field managers), medical practitioners (consulting physicians, dispensing doctors, para­medical staff) and stockists (including distributors or dealers and chemists) to promote its product range.2. It is suggested that decentralization is more preferred as it has a due importance to minimize the communication gap between top authority and field executives.Arfterthe thorough analysis of organizational hierarchy, it has been suggested that they have a capabilities to handle whole marketing functions for successful product promotion. Image Source: iampyourbrand.com ADVERTISEMENTS: The marketing department…
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