14Oct 2018 by Reese Bannister

Essay on the Brief History of International Monetary System

Management
History of international monetary system is lengthy and complex. Here we shall describe only important features in chronological terms:i. Pre-First World War Gold Standard: A Fixed Exchange System. Under the gold standard, countries used gold standard as a medium of exchange and a store of value. ADVERTISEMENTS: During this era the exchange rate was stable. Prior to World War I, a country’s monetary unit was defined in terms of certain weight of gold. Image Source: fouman.comDuring this era London, a financial centre for 90 percent of world trade, dominated the international finance. Sterling was the sole reserve currency, as it was convertible into gold at the Bank of England. Interestingly the Bank of England had only two to three percent of gold backing to the actual money supply.ii. The two…
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14Oct 2018 by Reese Bannister

Essay on the Position of a Karta in Hindu Joint Family

Accounting
The joint family is a patriarchal organisation. The senior most male ascendant is the head of the family and is called the Karta or Manager. The Manager represents the family and acts on its behalf. In a family consisting of the father and his children, the father is the manager.When he dies his eldest son becomes the manager. Thus in a joint family consisting of brothers the eldest brother is the Manager. It is open to the senior member to give up his right of Management. Then one junior to him can become the Manager.A woman cannot be a coparcener and so cannot be the Manager of the Family. Radhe Ammal v. Income-Tax Commissioner, AIR 1950 Mad 538. A minor may be the Manager but he has to act through…
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13Oct 2018 by Reese Bannister

Legal Provisions of Section 9 of Code of Civil Procedure, 1908 (C.P.C.), India

Management
Suit of civil nature:The question that falls for determination is what is a suit of a civil nature? A suit is of a civil nature if the principal question in the suit relates to the determination of a civil right. Thus if the principal question in the suit is a caste question or a question relating to religious rites or ceremonies, the suit is not of a civil nature. ADVERTISEMENTS: In order to fall within the purview of the term “of a civil nature” the suit must be for the enforcement of rights and obligations of a citizen and not matters which are purely social. The rights vesting in a person by virtue of being a member of a caste or religious community would not be of a civil nature…
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13Oct 2018 by Reese Bannister

What are the Arguments in Favour and Against Trade Barriers? – Explained!

Industry
Many countries, particularly the developing countries put barriers in the form of tariffs, as these are the only ways to generate and collect revenue for the state. In case of Myanmar, export and import duties are the major source of state revenue.The most important of all economic arguments is the employment/labor argument. It is based on the premise that less of imports will create more jobs. Markets are to be protected, particularly from countries where wages are much lower. This lower wage advantage will either wreck the domestic industry or force it to match the lower wages. ADVERTISEMENTS: The decision of many states of the US to enact statutes to not to award BPO work to India is guided by this very logic. In banking and insurance, regulation serves to…
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13Oct 2018 by Reese Bannister

What are the 5 Reasons for Government Intervention in International Trade?

Industry
Strategic arguments those are non-economic reasons for government intervention in international trade. These include: 1. National Security Argument: Each nation protects some industries to guard its national security. The most obvious examples are weapons, aerospace, advanced electronics, semiconductors, and strategic minerals (e.g., exotic ores used in jet aircraft), etc. Protection for the sake of making available specific minerals or resources does not appear to be an optimal policy. A better alternative is to stockpile such resources during peacetime when they are cheap. ADVERTISEMENTS: Protagonists of national security argument claim that a nation should be. Self-reliant and be ready to pay for inefficiency when the case relates to national security. Recently, Pentagon has pressed for development of flat-panel industry even though the same can be bought much cheaper from Asian countries.…
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13Oct 2018 by Reese Bannister

Useful Notes on Product Life-Cycle Theory of International Trade

Strategy
The product life-cycle theory was developed by Raymond Vernon in the mid-1960s. The theory presents an insightful analysis as to why in the twentieth century a large number of new products in the world were developed by the US firms and sold first in the US market.Vernon pointed out that many manufactured foods, like automobiles, televisions, instant cameras, photocopiers, personal computers, semi-conductor chips, etc. go through a continuum or cycle that consists of introduction, growth, maturity, and decline stages. The location of production will shift to serve markets according to the stage of cycle a product is therein. Stage 1: Introduction: Most innovations take place where there is a nearby observed need and market for them. A Japanese company will develop a new product for Japanese market and a US…
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13Oct 2018 by Reese Bannister

5 Major Techniques of Stock Taking (Including Merits and Demerits)

Accounting
Various techniques/techniques of stock taking are as follows:1. Periodic stock verification2. Continuous or perpetual or automatic stock verification ADVERTISEMENTS: 3. Spot checks4. Stock out stores verification5. Annual stock taking. 1. Periodic Stock Verification: Periodic stock taking is quarterly or half yearly checking of the entire stock in one or two days. This takes where the stock comprises a few but expensive items. The method followed is similar to the annual stock taking i.e., physical stock of various items is recorded on inventory sheets or inventory card and then compared with the bin card balance. image source: citadelsystems.com ADVERTISEMENTS: While inexpensive items may be checked once a year, expensive and attractive items should be checked three or four times a year. The physical balance obtained at the end of the financial…
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13Oct 2018 by Reese Bannister

What are the Fixed Factors and Variable Factors of Production? – Explained!

Management
Production is the result of combined efforts of the factors of production. These factors may be fixed or variable. A fixed factor is one, whose quantity cannot readily be changed in response to desired changes in output or market conditions.Its quantity remains the same, whether the level of output is more or less or zero. Buildings, land, machinery, plants and top Management are some common examples of fixed factors. A variable factor, on the other hand, is one whose quantity may be changed in response to a change in output.Raw materials, ordinary labour, power, fuel, etc. are examples of variable factors. Such factors are required more, when output is more; less, when output is less and zero, when output is nil. For the sake of analytical simplicity, semi-variable factors are…
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13Oct 2018 by Reese Bannister

8 Most Important Factors which Affect the Quantity Supplied of a Company in Isolation

Management
Supply refers to various quantities of a commodity which a producer will actually offer for sale at a particular time at various corresponding prices. Supply of commodity depends upon a number of factors.It is difficult to analyse the effect of a simultaneous change in all the factors. While studying the effect of any factor, other factors are assumed to be constant. Some of the important factors which affect the quantity supplied of a commodity in isolation are as follow. 1. Price: It is the most important determinant of supply of a commodity representing gross earnings per unit of the goods sold. The higher the price of the commodity, more of the commodity will be offered for sale on account of rise in its profitability and vice-versa. The direct relationship between…
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12Oct 2018 by Reese Bannister

Difference between “Rights in Rem" and “Rights in Personam” – Explained!

Business
The distinction between rights in rem and rights in personam is based chiefly on the difference in the incidence of correlative duties, the division having been derived from the Roman division of the action into an action in rem and an action in personam. Image Source: cdn.publishyourarticles.netRight in Rem: ADVERTISEMENTS: A right in rem is available against the world at large; it is a right available against persons generally. Examples are rights of possession and ownership.Right in Personam:A right in rem is available only against a determinate person or persons, corresponds to a duty imposed on determinate individuals. Examples are the right to receive compensa­tion for false imprisonment or defamation; or the right to recover a debt from the person who owes me the money. Rights under a contract are…
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