Management of Banks and Financial Institutions - Free Essay Example

Management of Banks and Financial Institutions CIA-2 Asset Liability Management Management of Assets and Liabilities by Banks [pic] Submitted By: Paul George 0921420 Caroline 0921440 Poornima 0921449 Sonal 0921454 Anvin 0921459 Meaning of ALM ALM is an attempt to match Assets and Liabilities, in terms of Maturities and Interest Rate Sensitivities, to minimize Interest Rate Risk and Liquidity Risk. †¢ ALM can be termed as a risk management technique designed to earn an adequate return while maintaining a comfortable surplus of assets beyond liabilities. It takes into consideration interest rates, earning power, and degree of willingness to take on debt and hence is also known as Surplus Management [pic] [pic] [pic] [pic] ALM and NIM †¢ ALM is all about efficient management of balance sheet dynamics with regard to its size, constituents and quality. †¢ It is the process of managing the Net Interest Margin (NIM) within the overall risk bearing ability of a bank †¢ ALM process depends on the understanding of the balance sheet; the availability, accuracy, adequacy and expediency of the data and the MIS system DEFINITION OF ALM ALM is defined as, â€Å"the process of decision – making to control risks of existence, stability and growth of a system through the dynamic balances of its assets and liabilities. † †¢ The text book definition of ALM is â€Å"a risk management technique designed to earn an adequate return while maintaining a comfortable surplus of assets beyond liabilities. It takes into consideration interest rates, earning power and degree of willingness to take on debt. It is also called surplus- management†. PURPOSE AND OBJECTIVES OF ALM ? Review the interest rate structure and compare the same to the nterest/product pricing of both assets and liabilities. ? Examine the loan and inves tment portfolios in the light of the foreign exchange risk and liquidity risk that might arise. ? Examine the credit risk and contingency risk that may originate either due to rate fluctuations or otherwise and assess the quality of assets ? Review,the actual performance against the projections made and analyse the reasons for any effect on spreads. ? Aim is to stabilise the short-term profits,long-term earnings and long-term substance of the bank. The parameters that are selected for the purpose of stabilising asset liability management of banks are: -Net Interest Income(NII) -Net Interest Margin(NIM) -Economic Equity Ratio †¢ Net Interest Income- Interest Income-Interest Expenses. †¢ Net Interest Margin- Net Interest Income/Average Total Assets †¢ Economic Equity Ratio- The ratio of the shareholders funds to the total assets measures the shifts in the ratio of owned funds to total funds. The fact assesses the sustenance capacity of the bank. RISKS INVOLVED IN ALM Various Risks involved in Asset-Liability Management are: – Interest Rate Risk – Foreign Exchange Risk – Liquidity Risk – Credit Risk – Contingency Risk MANAGEMENT OF LIQUIDITY RISK Liquidity Risk: It is the risk of having insufficient liquid assets to meet the liabilities at a given time. ? Stock Approach Stock Approach is based on the level of assets and liabilities as well as off balance sheet exposures on a partic ular date. †¢ liquid assets to short term liabilities ratio †¢ loan to deposits ratio ? Flow Approach †¢ Measuring and managing net funding requirements. Managing Market Access †¢ Contingency Planning MANAGEMENT OF INTEREST RATE RISK Interest Rate Risk: It is the risk of having a negative impact on a bank’s future earnings and on the market value of its equity due to changes in interest rates. Interest rate risk is the volatility in net interest income (NII) or in variations in net interest margin(NIM). Techniques: 1. Gap Analysis 2. Duration Gap Analysis 3. Simulation 4. Value at Risk GAP ANALYSIS One way to measure the direction and extent of asset-liability mismatch is by using gap analysis. The analysis derives its name from the â€Å"gap† which is the difference between the amounts of Rate Sensitive Asset (RSA) and Rate Sensitive Liabilities (RSL). †¢ Repricing gaps are calculated for assets and liabilities of differing maturities. †¢ Positive gap indicates that assets get repriced before liabilities, whereas, a †¢ Negative gap indicates that liabilities get repriced before assets. †¢ The general formula that is used is as follows: NIIi = R i (GAPi) NII is the net interest income R refers to the interest rates impacting assets and liabilities in the relevant maturity bucket GAP refers to the differences between the book value of the rate sensitive assets and the rate sensitive liabilities. DURATION MODEL Duration is an important measure of the interest rate sensitivity of assets and liabilities as it takes into account the time of arrival of cash flows and the maturity of assets and liabilities. It is the weighted average time to maturity of all the preset values of cash flows. Duration basically refers to the average life of the asset or the liability. SIMULATION Simulation models help to introduce a dynamic element in the analysis of interest rate risk. Basically simulation models utilize computer power to provide what if scenarios, for example: What if: ? The. absolute level of interest rates shift Margins achieved in the past are not sustained/improved. VALUE AT RISK It enables the calculation of market risk of a portfolio for which no historical data exists. It enables one to calculate the net worth of the organization at any particular point of time so that it is possible to focus on long-term risk implications of decisions that have already been taken or that are going to be taken. It is used extensively for measuring the market risk of a portfolio of assets and/or liabilities. THREE PILLARS OF ALM PROCESS The ALM process rests on Three Pillars: 1. ALM Information Systems 2. ALM Organization 3. ALM Process ALM INFORMATION SYSTEMS ALM Information Systems helps perform the following activities- †¢ Decision Support and Reporting Tool †¢ Comparison between different Branches †¢ Product Analysis †¢ Duration Gap Analysis †¢ Risk Planning and Management †¢ Flexible Design †¢ Strategic Planning of the Asset-Liability Mix †¢ Simulation Analysis †¢ Transfer- Pricing Mechanism ALM ORGANIZATION ALM Organization consists of the following: †¢ Strong Commitment of Senior Management †¢ ALCO should comprise the Senior Management (including the CEO) †¢ A Support Group of Operational Staff ILLUSTRATION OF AN ALM ORGANIZATION- [pic] [pic] WORKING OF ALCO COMMITTEE [pic] ALM PROCESS The scope of ALM function can be described as follows: †¢ Liquidity Risk Management †¢ Management of Market Risks †¢ Trading Risk Management †¢ Funding and Capital Planning †¢ Profit Planning and Growth Projection ASSET LIABILITY MANAGEMENT AT ICICI BANK [pic] [pic][pic] [pic] [pic]

Definitions of Essay about the Civil Rights Movement

Definitions of Essay about the Civil Rights Movement The concentration of people in 1 place attracts several facilities to boost survival and businesses in the region. Water is a major human right, but a lot of African American neighborhoods don't have accessibility to safe drinking water. The black community is currently free to settle any place in the nation, so long as it's economically viable. Blacks couldn't use the exact same public facilities as whites, live in a number of the very same towns or go to the exact same schools. Order top-notch essay at the moment and certified specialists will do their very best to supply you with higher quality at fair price. It is a good idea to look for the one which has an excellent reputation and offers high-quality papers at inexpensive rates. In order in order to deliver an excellent paper on civil rights, you should be in a position to do proper research so you can find with and aptly tackle a number of the challenges and issues t hat have arisen over time. Another case of a financial success is Affirmative Action. The NAACP formed as an immediate reply to this instance. General historical information can be connected in your words. Community and religious organizations, all of the while started to join in the endeavor. Begin with the introduction part. King's speech is still one of the most renowned speeches in American history. The media is usually predisposed to give an access, in addition to create social problems for an enormous number of audiences all over the planet. To start with, you've got to set the scene and draw the readers' interest. The Civil Rights Movement was arguably the main matter to ever happen in the USA. Inside this section it is wise to mention the most renowned leaders of the civil rights movement and learn whether this movement really had revolutionary nature. It also resulted in the formation. The movement started in the calendar year 1954 and it lasts for over ten y ears that's up to 1968. The civil rights movement was established dependent on a collection of events that occurred in the length of many years. Things You Should Know About Essay about the Civil Rights Movement Conclusion In the full history of america, racism has taken a substantial part. Because civil rights are enforced by nations, it's tough to establish a global standard for civil rights protection, regardless of the efforts of global governance bodies like the United Nations. The Voting rights act proved to be a terrific step not just for civil rights movement, but for democracy too. Consequently, more than 200,000 blacks could find top work in defense-related industries. There are lots of arguments you could present in your work about civil rights, and it's imperative that you learn to make them stand out. Civil rights is an intriguing topic to speak about. Black children weren't permitted to visit white schools. Civil rights laws make an effort to guarantee full and equal citizenship for those who have traditionally been discriminated against on the grounds of some group characteristic. People across the country were made conscious of the event as it was launched on such a gigantic scale and lasted for over a year. The results of the case ruled that public schools cannot be segregated. The school authorities took three years to finish the integration program. You have to devote a certain quantity of time sitting in the library or surfing the internet as a way to locate some helpful data for your academic paper. The before mentioned goals were achieved by many distinct means. For instance, some of them just have zero opportunity to deal with dozens of assignments that keep bombarding from every side. There are a lot of ways that an individual may be discriminated against. Indeed, the best method to enslave people is to make them think they are free! The American dream that was built on the ground of equality, fraternity and liber ty was going towards a failure because of the inequality and racism and that's why America granted rights to a lot of citizens without thinking much. This decade would certainly permit the civil rights movement to become considerably more established. Apparently, these aren't the concerns of Caucasian Americans. It caught the interest of the whole nation. For instance, there is currently a middle category of blacks which is a very big success for the reason that it indicates that blacks have the ability to get the very same things as whites, it sets a goal for poorer blacks and eventually more will grow into this class. In the calendar year 1950 white men and women obviously had a social advantage rather than African-American individuals who were oppressed. In addition, the blacks had the ability to secure the right to vote. The Hidden Treasure of Essay about the Civil Rights Movement Besides affecting oneself, additionally, it has a negative effect on others around smokers that's also called second hand smoking. There is an assortment of examples of smoking. It is like a slow death. It is a hard habit to break because tobacco contains nicotine, which is highly addictive. The cost of an essay depends upon the total amount of effort the writer has to exert. The quick paper has to be on a topic that is a portion of American History during the period covered by the training course. And this isn't the close of the story yet. The poem is made up of 3 quatrains and a last couplet. The absolute most relevant and important details that you will use to show your argument. If you read the info and write it in your words and it's not common understanding, then you have to cite the source as you are paraphrasing somebody's information. Do not presume that your reader knows the topic or the sources which you are using. Historical information and examples.

Chapter Of Historical Thinking And Other Unnatural Acts

COLLAPSE In the second chapter of Historical Thinking and Other Unnatural Acts, Sam Wineburg traces the evolution of educational psychology research on how history is learned and best taught. He reviews literature and studies, from the turn of the 20th century to today, concerning the pedagogy and learning of history. He continues his focus on the question: What can learning about history teach us and how can we best come to learn it? Much of the chapter surrounds the difference between â€Å"declarative knowledge† and â€Å"procedural knowledge.† Declarative knowledge can state facts and figures, whereas procedural knowledge relates to how to perform a task. In this context, we can think of it in terms of rote memorization or familiarity with historical facts, and a thoughtful approach or method of understanding history that manifests as what J. Carlton Bell termed, the â€Å"historic sense.† Whereas G. Stanley Hall saw historical study as a vehicle for students to develop morals and ethics, Bell â€Å"argued that the study of history provided and opportunity for thinking and reflection.† (Wineburg, 31) Bell explored the idea of what he termed, â€Å"the historic sense.† This sense, he proposed, was displayed in a student’s ability to put together diverse historical data to produce a coherent account and arrangement of historical data. Bell and David F. McCollum collaborated on a study examining the nature of historical understanding and pedagogical considerations that looked at which ways suchShow MoreRelatedHistorical Thinking And Other Unnatural Acts1047 Words   |  5 PagesKent Robertson HIS 6632 – Ritter Wineburg Book Review March 17, 2017 Historical Thinking and Other Unnatural Acts This week’s topic was the book Historical Thinking and Other Unnatural Acts by Sam Wineburg. There is an old quote that states â€Å"Those who do not learn from history are doomed to repeat it† (Santanya, 2006). This has long been the worry of educators and policy makers in the United States, how should history be taught and what parts of history are the best to teach? The focus ofRead MoreThe Christianity Of Modern Homosexuality1432 Words   |  6 Pagesthe creature rather than the Creator, who is blessed forever! Amen. For this reason, God gave them up to degrading passions. Their women exchanged natural intercourse for unnatural, and in the same way also the men, giving up natural intercourse with women, were consumed with passion for one another. Men committed shameless acts with men, and received in their own person the due penalty for their error†¦They were filled with every kind of wickedness† (Pg. 133) These verses from the Bible show whatRead MoreAnalysis Of Paulo Freire s Pedagogy Of The Oppressed1735 Words   |  7 Pagesthis paper, I am going to analyze the views expressed by Paulo Freire in Pedagogy of the Oppressed by using the four elements of theories of human nature. I am also going to express my opinion on Freire’s ideologies as explained in the first three chapters of his book. I will assert that Freire has provided thoughtful insight in terms of the four elements, but I will also assert that I do not fully agree with Freire’s ideas and insight then state the reasons for my opinions. My conclusion is that FreireRead MoreWilliam Cronon And Neil Smith1259 Words   |  6 Pagesresponsibility toward nature and the potential danger existing in our conception of wilderness (or nature).   On the other hand, Neil Smith in The Production of Nature introduces us to how humanity transforms the nature in the process of producing commodities. William Cronon discusses how we separate ourselves from our nature of origin (or village) merely by idealizing it and thinking of it as somewhere distant and remote we don’t belong. William says that we all come from a natural origin, but sometimesRead MoreEssay on War and Peace and Tolstoys View of History2791 Words   |  12 PagesWar and Peace is what the author wanted and was able to express in that form in which it was expressed.   Not only do the themes and incidents in the novel reflect his theory of history, Tolstoy iterates this in less narrative terms in the twelve chapters of the Second Epilogue, described as, A general discussion on the historians study of human life, and on the difficulty of defining the forces that move nations.   The problem of freewill and necessity.   The view of history explored by TolstoyRead MoreEssay on Reading Moby-Dick as Ethnic Allegory2752 Words   |  12 Pagesdemise of the Pequod , as a space which rearranges traditional s tructures of hierarchy and accomodates ethnic diversity, in the end, demonstrates Melvilles indecisive anxiety between an imagined fantasy of an alternative social reality and the historical reality of American westward expansionism. First, allow me to be clear: At a simplified level, I call this an ethnic allegory because Moby-Dick both illustrates and confronts the ways in which white America expresses a desire for hegemonicRead MoreInternationalization Theory and Its Impact on the Field of International Business7496 Words   |  30 Pagesinternational strategic-management sphere has unfortunately not taken on board internalization-theory thinking and lacks the insights provided by this comparative institutional approach. In this chapter we show hoe well-known international strategic management models could be enriched and their normative implications altered by adopting an internalizing-theory lens. Introduction In this chapter we examine several international strategic management models revisited through an internalization theoryRead MoreMasculinity in Chuck Palahniuks Work7062 Words   |  29 Pagespinpoint in the literature sense, David Fincher’s adaptation helpfully put Palahniuk’s thoughts into the cinematic forefront. This increased the popularity of Palahniuk’s other works and placed him in the cannon of Post-modern American fiction. It is the issues of modern masculinity that grasps critics’ attention more so than any other Palahniuk themes. It is very apparent that masculinity has changed as a natural progression of modernisation. This dissertation will analyse masculinity as it isRead More Science in Mary Shelley’s Frankenstein and Hard Times by Charles Dickens3626 Words   |  15 Pagesis quite interesting; the â€Å"isolated scientist† is what Victor becomes. Shelley portrays the scientist as someone who displaces normal emotions and healthy human relationships, totally oblivious to the outside world. This can be seen in volume one chapter five of the novel: The summer months passed while I was thus engaged, heart and soul in one pursuit. It was a most beautiful season†¦but my eyes were insensible to the charms of nature. And the same feelings which made me neglect the scenesRead MoreScience and Progress in Frankenstein and Hard Times3785 Words   |  16 Pagesis quite interesting; the isolated scientist is what Victor becomes. Shelley portrays the scientist as someone who displaces normal emotions and healthy human relationships, totally oblivious to the outside world. This can be seen in volume one chapter five of the novel: The summer months passed while I was thus engaged, heart and soul in one pursuit. It was a most beautiful seasonÂ…but my eyes were insensible to the charms of nature. And the same feelings which made me neglect the scenes around

International Trade Law Essay - Free Essay Example

Sample details Pages: 13 Words: 3982 Downloads: 2 Date added: 2017/06/26 Category Law Essay Type Research paper Did you like this example? International Trade Law 1. The selection of an alternative dispute resolution mechanism is particularly pertinent in international trade cases because the parties are, by definition, domiciled in different nation states (Chuah, 2009). Since an agreement must therefore be reached on choice of law issues, it is common for parties to consider stepping outside standard litigation processes altogether and instead stipulating for arbitration to take place (Neipert, 2002). Arbitration offers several advantages over litigation. Don’t waste time! Our writers will create an original "International Trade Law Essay" essay for you Create order Typically, it is less expensive than litigation, since fewer legal professionals are required. It is also perceived to lead to a speedier resolution of disputes due to decreased formality, the removal of the need to schedule around the timetable of the formal court system, and, typically, the absence of a right of appeal (Schmitthoff, 2007). Arbitration allows the parties to control a number of variables in the dispute resolution process through prior agreement (Mustill Boyd, 2008). These include the choice of an arbitrator with specialist knowledge of the relevant area, the scope of the arbitration, the location of arbitration and the choice of law. In addition, arbitration is a private rather than public procedure and therefore will not be subject to public record: this is likely to be advantageous if the subject matter is particularly damaging to public image of company. By contrast, many of these same factors may prove disadvantageous to the parties in a different factual scenario. The lack of a right to appeal may become a disadvantage if the arbitrator makes an error of fact, or the arbitrator appointed is not as impartial as the parties would wish. In addition, arbitration is disadvantageous because it lacks formal mechanisms for the enforcement of arbitral awards or attendance at the arbitration, and cannot compel third parties to attend. Litigation offers potential advantages over arbitration. It is, in principle, totally impartial as to the outcome of the case. It determines cases according to a fixed substantive law without reference to the general principles of fairness that an arbitrator might refer to (Moses, 2008). It also provides for an appeal procedure, should that be perceived as an advantage. In addition, there are fewer variables for the parties to control or anticipate in advance of the dispute arising, and litigation is supported by formal enforcement mechanisms, including contempt of court and proprietary remedies. By co ntrast, judges may not be specialists in the given dispute area, which my be deemed more important than their appearance of impartiality to the litigation process. Formal litigation is associated with delays, inflexible timetabling and higher costs, although it should be noted that the costs of any given dispute resolution mechanism are dependent on the facts of the case (particularly its complexity, length and the number of legal professionals employed). It is also important to discuss the possible limitations that domestic laws may place on the nature of the arbitration, and the effect, therefore, that they may have to tip the balance in favour of one method over the other in any given situation. There are significant theoretical difficulties in determining the source and content of the arbitrators power: the form and nature of arbitration may be limited by the way in which law governing the contractual relationship between the relevant parties conceives of arbitration (L ew, 1978). Most legal systems adopt the position either that the arbitration agreement constitutes an autonomous source of authority wholly independent of any national legal system (Goode, 2004: 1178) or, alternatively, that the arbitration agreement brings into play an autonomous arbitral order derived from the institutional character of arbitration and based on principles common to civilized states (Mustill and Boyd, 2008: 66). There is, therefore, a conflict between the autonomous nature of the arbitration and its reliance on the law of the forum in order to confer this autonomy. This conflict may place a practical limitation on the form that the arbitration takes if the lex fori arbitrae does not permit the parties to consent out of particular legal mechanisms (Goode, 2006). Despite the intentions of the parties to contract out of it, litigation may be the only available mechanism. 2. To what extent has harmonization of legal rules in international trade taken place? International trade is a legally complex field due to the disparate bodies of national commercial law that may apply to any given transaction (Sealy Hooley, 2008). There is widespread recognition that international commercial codes are necessary to avoid the difficulties inherent in conducting international commercial transactions using the laws of individual nation states (Goode, 1991) and, as a result, significant efforts have been made to generate substantive legal codes that parties can incorporate by reference to govern their international trade transactions. Several specific codes should be referenced to outline the near-comprehensive scope of the fields in which harmonization has taken place: the Vienna Convention on Sale of Goods and standard form terms such as the Cartegen Incoterms govern international sale of goods, the UNCITRAL Model Law on International Commercial Arbitration governs alternative dispute resolution mechanisms in the international context, the Uni form Customs and Practice for Documentary Credits governs the payment mechanisms typically used in international trade. Further to these attempts at harmonization, Bonell (2003) has proposed that a global commercial code is developed that has an application to all members of the international trade community. However, an equally significant movement has been underway which intends to secure harmonization of procedure in international trade (Goode, 2006). It is often overlooked that the substantive regulation of international trade takes place in a framework outside that of the national courts, and the harmonization of the procedures of dispute resolution is arguably as important as that of the substantive rules of international trade (Stephan, 1999). In this respect, the efforts of the European Union in harmonizing the conflicts of laws rules under the Brussels I Regulation and the Rome II Convention are particularly notable (Briggs, 2008). What reforms are necessary to improve the legal position of international traders? Stephan (1999) takes this observation to its logical conclusion, and argues that the legal profession should stop trying to unify substantive rules of trade law until a comprehensive framework has been developed for the dispute resolution mechanisms in which those rules will apply. Parry argues that inherent limitations arise when uniform international trade rules are implemented in different national legal systems. He assesses the benefits of further harmonization under three headings: the reduction of legal risks in international commerce, legal reform, and enhanced roles of international legal advisers. His argument is that harmonization operates in favour of one of those interests at any given time, but is likely to work against the other. Personally, I would seek to make the broader argument that further reform in the field of substantive harmonization is likely to suppress discussion of procedural harmonization. To my eyes, the most important reforms for the harmonization of the international trade system at present include a more uniform approach to dispute resolution, and an extension of a conflict of laws system such as the rules in place within the EU Member States, to members of the international trade community more broadly. 3. Produits SA v Products PLC The question of which courts have jurisdiction to hear the dispute will be determined by the Brussels I Regulation. The Regulation applies to all civil and commercial matters (Art 1(1)) and this dispute is likely to fall squarely within that definition as a contractual dispute between two incorporated bodies. Art 5(1) states that in relation to contractual disputes, the court of the Member State in which the characteristic performance of the contract takes place shall have jurisdiction. The characteristic performance is the performance for which payment is made by the counterparty (Briggs, 2008: 171), and will therefore be the place where the goods are due to be delivered by the seller. Since the contract stipulates that the goods are to be provided FOB Southampton, then the place of performance is England. The English courts therefore have jurisdiction to hear the claim. The applicable law will be determined by the provisions of Rome I. In the absence of a choice of law by the parties, Art 4(2) states that in contractual disputes where the contract is entered into in the course of a trade or profession, then the country in which the principal place of business is situated shall be the company or performance is to be made is the country whose law governs the contract. On the facts, it would appear that English law therefore governs: Products PLC is an English registered company, and the place of performance of the characteristic performance was England. For the avoidance of doubt, the contract between Products PLC and Produits SA was a contract for sale rather than carriage of goods, and therefore Art 4(4) does not apply. Products PLC v Nee Soon Wat Pty The question of jurisdiction in this case will depend on whether the claimants can argue that the office held by the defendant company in Rotterdam constitutes residence within a Member State of the European Union for the purposes of the Brussels Regulation. Art 59 states that in order to de termine whether a party is domiciled in the Member States whose courts are seized of a matter, the court shall apply its internal law. Following Fawcett Carruthers (2008), in order for a company to be resident in a particular country it must be demonstrated that the company has a fixed place of business from which it has carried out business for more than a minimal time and that the companys business is transacted from that place. It is a matter of factual interpretation whether the defendant company carries out business in The Netherlands and has done for a significant period of time, but prima facie the existence of an office is likely to suffice. We may therefore apply the Brussels Regulation as above, although the characteristic performance here is effected by shipment CIF to Bangkok. Since this is not within a Member State, Art 5(1)(b) cannot apply, and Art 5(1)(c) directs us back to the general rules in Art 5(1)(a) that the courts of the place of performance will have jurisdiction. The claimants here would be able to make a strong argument on the basis of payment in sterling to a London bank account, combined with delivery CIF from a London port, that the relevant performance in this contract was due to be effected in England. The applicable law will then be determined by Rome I, under Art 4(2) as above. Since the claimants are selling the tyres in the course of their trade or profession, then the choice of law is the country in which they have their principal place of business. Here, there is little doubt that since Products PLC are an English registered company, their principal place of business will be found to be England. English law is therefore likely to apply. 4. Distribution Distribution is a highly simplistic method of overseas marketing. The legal structure of the distribution agreement is an international sale agreement: the international seller purchases the relevant goods from the domestic seller, and then sells the goods to third party buyers overseas for his own account (Goode, 2006). Within the distribution contract, no further legal obligations need necessarily be entered into between the parties except those contained in the contract of sale. The sale will typically be governed by standard commercial terms such as Vienna Convention on Sale of Goods 1980 (August et al, 2008). The distribution method has several advantages. Most important is the simplicity and familiarity of the international sale agreement between the seller and the distributor: the method involves only a straightforward contract of sale for goods, governed by standard international terms. Under a distribution method, the domestic seller is not exposed to liability in the international market because the profit is made at the point of initial sale. In addition, no additional costs associated with selling in the overseas market are incurred to the domestic seller, since the international seller assumes any overheads (Neipert, 2002). There are, however, several disadvantages. Within a distribution agreement, the domestic seller has no further legal relationship with the international seller once the sale has been completed, and must therefore surrender all control over the goods and the manner in which they are sold. This can render it much more difficult to maintain a brand presence in the overseas market, since the domestic seller (who is also likely to be the producer of the goods) cannot control the manner and form in which the goods are sold without entering into further agreement (Goode, 2006). In addition, any revenue from the overseas sale is limited to the amount made in the initial sale to the distributor, who then sells for his ow n account in the overseas market: the domestic seller will not, within a distribution agreement, have recourse to any additional profit made at the point of sale to overseas consumers. Franchising The simplicity of the distribution method can be contrasted with the franchise. Franchising does not rely on a legal structure per se, but rather a specific business model in which the domestic seller grants a licence to the international seller which permits the latter to provide a good or service in the overseas market that is subject to a trade mark by the domestic seller (Benjamin, 2008). The franchisee will then sell the goods for his own account, and payment mechanisms between the overseas seller and the domestic seller will be referred to the units sold or the profit generated. By contrast to the distribution agreement, the franchise method allows the domestic seller to impose significant restrictions on the way in which the product is sold: these restrictions are inten ded to bolster sales by providing coherent to the franchise system, as well as implementing successful business practices (Goode, 2006). From the perspective of the domestic seller (the franchisor), it has the advantages that it is a highly specialist marketing form that simultaneously allows the domestic seller to exercise a high degree of control over the franchisee without exposing himself to liability in the international market, since the domestic seller is not financially liable to the franchisee or creditors of the franchisee. From the perspective of the overseas seller (the franchisor), the franchise method would present a significant disadvantage to a seller wishing to develop an independent sales method or brand presence in the overseas market, but would offer significant advantages in terms of business management support and branding. The method that is preferred will depend on the likely balance that the parties seek between three factors: commercial convenience, ease of entering into specific legal relationship, and desire to enter into contractual relationship with overseas party (Schmittoff, 2007). One must also consider the international tax implications of the transaction (Goode, 2006) which although well outside scope of this analysis, may be determinative. 5. Structure For the legal implications of the letter of credit to be explained, one must first have an understanding of its structure. A letter of credit consists of a number of contractual relationships between the parties that seek to provide an autonomous system of payment for a documentary sale (Wood, 2007). The credit is comprised of five contracts between the four relevant parties: the underlying contract between the buyer and the seller; the contract between the buyer and the issuing bank which instructs the latter to open the letter of credit, on terms that specify that payment is not to be made until the relevant documents are received; the issuing bank will enter into a contract with the advising bank notifying them of the existence of the credit and authorizing them to make payment to the seller when the relevant documents have been received; the issuing bank will also enter into a contract with the seller stipulating that payment will be made against documents; finally, the a dvising bank enters into a contract with the seller stating that payment will be made against documents when provided to the advising bank (Goode, 2006). Each of these contracts will typically be governed by the Uniform Customs and Practice for Documentary Credits (UCP), provided that it is expressly incorporated by reference into the contracts comprising the credit as required under both English law and Art 1 UCP itself. Autonomy The important result of the multiple contracts involved in the letter of credit is that it becomes a payment mechanism where payment is made autonomously from the underlying contract of sale (Sealy Hooley, 2008). As a leading commentator has stated, one of the primary functions of the letter of credit is to create an abstract payment obligation independent of an detached from the underlying contract of sale between the seller and the buyer and from the separate contract between the buyer and the issuing bank (Goode, 2006: 971). The legal impli cation of the autonomy of each contract within the letter of credit is that the seller will receive payment against the documents regardless of the his performance of the contract of sale with respect to the goods. An exception to the autonomy principle is made in cases of proven fraud, and in that respect the letter of credit is analogous to a bill of exchange in terms of its security of payment (Benjamin, 2008). Enforceability The principle of autonomy of the contracts comprising the letter of credit is supplemented by the principle of enforceability: payment must be made against documents that have been correctly tendered to the advising bank under the terms of the contract between those two parties (Wood, 2007). There must be strict compliance with the terms of the letter of credit and small discrepancies between the documents and the terms of the letter of credit will prevent payment being made (J H Rayner v Hambros Bank, 1943). The paramount advantage of the let ter of credit is that it provides certainty and security in payments made in international trade transactions, where other mechanisms may fail to ensure that the seller is paid in a timely fashion once title to the goods has been received (typically in the form of a bill of lading or similar document of title) (Sealy Hooley, 2008). The letter of credit has the potential to give rise to legal oddities into two situations, either where payment will be made against documents even in situation where parties know that goods have not been tendered under the contract, or in case where goods have been tendered but payment cannot be made against the documents because of an otherwise insignificant difference between the wording of the documents and the terms of the letter of credit. 6. This problem will seek to briefly advise Westminster PLC (Westminster) in relation to each potential claim that they have against the Ron under the contract of sale. The most significant claim that Westminster has is in respect of the boxes of rum that have fallen from the crane into hold and onto quayside during loading. Under the terms of the Cartogen Incoterms 2000, the seller in an FOB contract is under a duty to load the goods onto the ship. Despite the significant criticism of the rule in Pyrene v Scindia (1954), the goods are deemed to have been loaded at the point at which they cross the ships rail (Benjamin, 2008) and as a result, the party that bears the risk of the damage to the broken bottles of rum will depend on which side of the ships rail the goods were above in the moment before they fell from the crane. It is likely that Westminster will bear the risk of all the boxes that fell into the hold, as their location would imply that the goods had passed the ships rail before they fell. Westminster would, however, have a claim against Ron in respect of the boxes that fell into the quayside, since it is unlikely that they had pa ssed the ships rail before falling. The claim would be governed by Arts 46-50 Vienna Convention on Sales. A second claim can be made in respect of the failure of the master of the vessel to take more than half the shipment. Under the terms of the Cartegen Incoterms 2000, the seller in an FOB contract is under a duty to load the goods, and is therefore liable for breach of that obligation in nominating a ship that refuses to load the full cargo. Westminsters remedies for breach are governed by the Vienna Convention on Sales1980, in particular Art 51(1) which states that the buyer may make use of the remedies listed in Arts 46 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 50 in the event that the seller delivers on a part of the goods or if only a part of the goods delivered is in conformity with the contract. Both of these criteria apply on these facts. A third claim can be made in respect of the inadequate screw tops provided by Ron and the subsequent damage suffered to the bottles. Westminster wil l have a claim against Ron under the contract of sale for the provision of faulty goods. Art 35(1) Vienna Convention on Sales places Ron under an obligation to deliver goods which are contained or packaged in the manner required by the contract and further states in Art 35(2)(d) that goods will not be deemed in conformity with the contract unless they are contained or packaged in the manner usual for such goods or, where there is no such manner, in a manner adequate to preserve and protect the goods. There is no indication that Westminster was aware of the inadequate packaging and Ron could not therefore raise a defence to the claim under Art 35(3), which states that the seller will not incur liability where the buyer was aware of the defect. A fourth claim can be made in respect of the bottles that have broken due to inadequate packing for the voyage. Under the Cartogen Incoterms 2000, it is the duty of the seller in an FOB contract to provide export packing. Westminster t herefore has a valid claim against Ron for the value of the damage that was suffered due to inadequate packaging. As a final point, it is clear that Westminster does not have a claim against Ron in respect of the delay in loading. The delay is contractually insignificant because the goods were shipped on 18th September, which is still within contract terms (September shipment). In respect of the claim that has been made against Westminster for storage fees payable to the Colombian authorities, my advice would be to resist payment and direct the Colombian authorities to Ron. Under the terms of the Cartogen Incoterms 2000, the seller in an FOB contract is under a duty to pay any storage fees incurred. Bibliography Vienna Convention on Sales Uniform Customs and Practice for Documentary Credits UNCITRAL Model Law on International Commercial Arbitration, Cartegen Incoterms Brussels I Regulation Rome I Convention August, R. A., Mayer, D., Bixby, M., 2008. International Business Law: Text, Cases and Readings. 5th ed. London: Pearson Education Chuah, J., 2009. Law of International Trade. 4th ed. London: Sweet Maxwell Briggs, A., 2008. The Conflict of Laws. Oxford: Oxford University Press Goode, R., 2006. Commercial Law. 3rd ed. London: Penguin Guest, C. J., Miller, C. J., Harris, D., Treitel, G. H., Lomnicka, E., Sealy, L. S., Reynolds, M. B., 2008. Benjamins Sale of Goods. 11th ed. London: Sweet Maxwell Lew, J. D. M., 1978. Applicable Law in International Commercial Arbitration. Leiden: Sijthoff Noordhoff Mustill, M. Boyd, S. C., 2008. Commercial Arbitration. 3rd ed. London: Butterworths Stephan, P. B., 1999. The Futility of Unification and Harmonizatio n in International Commercial Law. University of Virginia Law School Legal Studies Working Papers Series accessible at https://papers.ssrn.com/paper.taf?abstract_id=169209 Goode, R., 1991. Reflections on the Harmonisation of Commercial Law. Uniform Law Review, 54 Neipert, D. M., 2001. Law of Global Commerce: A Tour. London: Prentice Hall Moses, M. L., 2008. The Principles and Practice of International Commercial Arbitration. Cambridge: Cambridge University Press Murray, D., Holloway, C., Timpson-Hunt, D., 2007. Schmitthoffs Export Trade: The Law and Practice of International Trade. 11th ed. London: Sweet Maxwell Sealy, L. S., Hooley, R. J., 2008. Commercial Law: Text, Cases and Materials. 11th ed. Oxford: Oxford University Press Wood, P., 2007. Law and Practice of International Finance. London: Sweet Maxweel

Business Ethics Of International Business Culture,...

Name: Mohamad Alqahtani Instructor Name: Keith Kelley Course: INB385 International Business Date: October 11, 2015 Response to Ethical Challenges in International Business: Culture, Consumers and Employees Introduction General business ethics applies in the case of international business. However, international business ethics poses a particularly different difficulty- from domestic business- as a result of the scope of diversity that managers have to deal with: cultural, economic and legal, etc. Although the contents of business ethics are to an extent informed by the legal framework (including laws and regulatory policy), it is important to distinguish the legal from the ethical concerns. Besides, not all nations have the same laws governing the issues that ethics concerns itself with. Companies may take advantage of lax legal situations in certain countries, especially the developing world, to conduct unethical business. Yet, all companies, wherever part of the globe they are, have the obligation to take these issues seriously: discrimination based on race, gender, culture, sexual orientation, religion, age; poor or unsafe labor conditions and pay; bribery and corruption; thievery of land, money and other natural resources and/or intellectual property; pollution; national discrimination based on trade partnerships (tariffs, barriers, embargos); currency manipulation; price-fixing; product-safety; national security; stakeholder importance, among many others. ThisShow MoreRelatedEssay about Business Ethics1439 Words   |  6 PagesWhat is ethics? Ethics can be defined as a set of principles used by an individual to govern his or her decisions in an effort to ensure fairness and equality. Business ethics, as defined by the Stanford Encyclopedia of Philosophy is the applied ethics discipline that addresses the moral features of commercial activity. The same source also gives a history of business ethics which states that the concept as an academic principle is relatively young-only about forty years old; but in general is asRead MoreIndividual Rights and the Business Organization1543 Words   |  6 PagesIndividual Rights and the Business Organization Individual Rights and the Business Organization Introduction In todays highly uncertain business environment, businesses and individuals face a number of ethical issues which arise due to different internal and external environmental factors and impact the individuals within and outside the organizations. The ethical issues which negatively impact the privacy, morale, and societal values of individuals include fraudulent business practices and unethicalRead MoreEssay about Ethics in International Business1657 Words   |  7 Pages Ethics in International Business Abstract International business ethics challenges the corporate world to deal with questions of what to do in situations where ethical standards come into conflict as a result of the different cultural practices in the nation. Since, there is this dilemma that has progressively troubled the large multinational corporations, international business ethics has arisen to help address these adhesive subject matters. There are several international business ethicsRead MoreThe Top 2015 Best Companies For Multicultural Women1420 Words   |  6 Pagesand promoting women of color and minorities. Every organization that participates in this event is judged in the following categories and is also required to employ five hundred U.S. employees (NAFE). o Representation o Hiring, Attrition and Promotions o Recruitment, Retention and Advancement Program o Company Culture After conducting extensive research and reviewing a list of twenty five organizations, there are five organizations that came to be the top five and fit the criteria to be the best companiesRead MoreAdjusting to Cultural Change1761 Words   |  7 Pagescultural change: How U.S. business men and women have to adjust to various cultural changers to succeed in the international market. Abstract Culture inevitably influences the needs and desires of consumers of particular countries and socialized groups, consequently, businesses, in order to succeed have to be aware of cultural interests and target their products and operations to cultural demands. Succeeding necessitates knowing the factors that crisscross with the other culture and understanding theRead MoreEthics in the Workplace1201 Words   |  5 PagesEthics in the Workplace Classical and Contemporary Ethical Philosophies Ethical philosophies served as guide for people in the workplace to make moral decisions in conducting business. There are classical normative ethical philosophies as well as contemporary ethical philosophies being used. They have been applied in the different levels or dimensions of the business organizations. People do know that there are business organizations that have disregarded ethical standards and encounters ethicalRead MoreCode Of Ethics And Ethics1457 Words   |  6 PagesCode of Ethics A business code of ethics is a series of established principles an organization uses when operating in business or society. Organizations often develop these codes to ensure that all individuals working in the company operate according to the same standards. Most individuals have an internal code of ethics or moral principles they follow in life. A situation one individual finds ethically reprehensible may not seem so to another individual. Using a code of ethics in business attemptsRead MoreThe Role Of Ethics And Culture On An International Business Environment1508 Words   |  7 PagesAbstract Geert Hofstede is one of many sociologists that studied and emphasized the importance of ethics and culture in an international business environment. He contended how the culture of the leaders and staff can help one to determine the achievement or ineffectiveness of that business. Rue Byars described leadership as an ability to influence people and willingly follow one’s guidance or adhere to one’s decisions (Rue, Byars, 2009). The most successful CEO’s and leaders have a well-definedRead MoreThe Changing Role of Hr Management1106 Words   |  5 PagesManagement The Changing Role of HR Management For years, businesses relied on personnel departments for the management of their employees. The primary concerns of the personnel departments included attendance records, benefits, and salary. Therefore, the personnel departments did not consider the importance of contributions a company’s employees made to the business. These contributions included such things as diversity and intellectual capital. As businesses began to expand globally, they beganRead MoreThe Industry Environment : Walmart s Competitiveness1616 Words   |  7 Pagessize and their brand strength. And Carrefour is the main rival in Walmart s international business areas especially in China. Part 7 The SWOT Analysis and the Core Issue Strengths Walmart has a good corporate and brand image. Customers shopping in Walmart can experience considerate service. And because of economies of scale, Walmart has low prices every day. Besides the price, product diversification and its international logistics system which supported by the advanced information technology are

German Culture Essay - 991 Words

German Culture Germany has been remarkably called Das Land der Dichter und Denker (the land of poets and thinkers). The diverse culture of Germany has been molded by the major intellectual and popular currents in Europe, both religious and secular. This report is divided into several aspects of German Culture which are as follows. Language German is the official and predominant spoken language in Germany. Minority languages constitute Sorbian, Danish, Romany and Frisian. The immigrant languages include Turkish, Kurdish, Polish, Balkan languages and Russian. Literature German literature dates back to the Middle Ages. The most celebrated authors of the period are Walter von der Vogelweide and Wolfram von Eschenbach. The world†¦show more content†¦Germany has diverse architectural styles as a result of fragmentation of the country during centuries. The major architectural sites include Abbey Church of St. Michaels, Speyer Cathedral, Freiburg Cathedral, and the Cologne Cathedral [2] Music The different styles of German-language music include Neue Deutsche Welle (NDW), Krautrock, Hamburger Schule, Volksmusik, Classical, German hip hop, trance, Schlager, Neue Deutsche Hà ¤rte (NDH) and folk music, such as Waltz and metal. German Classical is among the most performed in the world. Germany is the birthplace of world famous classical music composers which include Ludwig van Beethoven, Johann Sebastian Bach, Johannes Brahms, and Richard Wagner. Page 1 12/3/2012 Cuisine German cuisine varies from region to region consisting mainly of meat (especially sausage) and varieties of sweet dessert and Stollen (a fruit cake). It is divided into three categories – Bavarian (Southern Germany), Thuringian (Central Germany) and Lower Saxon.The main varieties of meat consumed are pork, beef and poultry with pork being most popular. Germans are famous for rye bread. The popular drinks comprises of beer, German wine, carbonated mineral water and schorle. Art In the field of visual art, Germany has an illustrious tradition from the early works of figurative art to the present contemporary art. The distinguishedShow MoreRelatedDifferences Between American Culture And German Culture909 Words   |  4 Pages20th century. During these chaotic times Germans came to realize that the only way to prevent disorder and chaos was Ordnung or order. This philosophy of Ordnung is fundamentally different than the culture in the United States in which the people are trusted to do the right things rather than being forced by a set of written and unwritten rules that regulate social behavior. There are three significant differences between American culture and German culture: rules and regulations, the bureaucracyRead MoreDifferences Between German Culture And American Culture1654 Words   |  7 Pagesâ€Å"Culture makes people understand each other better. And if they understand each other better in their soul, it is easier to overcome the economic and political barriers. But first they have to understand that their neighbor is, in the end, just like them, with the same problems, the same questions.†- Paulo Coelho. According to Paulo Coelho, in order to better overcome the worldwide obstacles, we should try to understand each other’s cultures. Through this paper, I will try to show you the main differencesRead MoreGerman Culture : A Unique Blend Of The Old And New1304 Words   |  6 PagesGerman culture is a unique blend of the old and new. The large separation between the formal professional life and the informal private life amongst its people creates a country that is steeped in tradition, but also very forward thinking and evolving. While German is the official language of Germany, it is not the only language spoken in Germany. Many Germans claim to speak at least one other language. As of 2011, at least 92.8 of German students were learning English and/or French in general programsRead MoreComparing Brazilian Business Culture with German Business Culture1632 Words   |  7 PagesWhat is culture? Background What is culture? How can culture be defined? How is culture influenced? Searching in books or on the Internet, hundreds of different definitions of culture can be found. Each person has his or her own opinion of how culture should be defined. The term somebody is â€Å"cultured† is often heard. But what defines actually a culture? Before comparing parts of the Brazilian business culture with German business culture, the idea of culture itself must be defined. After thatRead MoreThe Killings And Destruction Of Cultures Throughout The Us, Australia, And German South Africa1750 Words   |  7 PagesAustralia, British India and German Southwest Africa, allows for a better comprehension of genocide as defined by the UN Convention. The four cases raise question as to why we can consider the cases to be genocide, and what similarities and differences each case has. Considering the UN definition , I acknowledge all but the British Indian case to be genocide. There are multiple simila rities between the mass killings and destruction of cultures in the US, Australia, and German Southwest Africa, which alignRead MoreGerman Culture and Lifestyle1252 Words   |  6 PagesRunning head: GERMAN CULTURE German Culture   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cultures that have difficulty understanding others can lead to increased tension among differing cultures. German cultures have been known to have a difficult past but if others view their lifestyles, dietary habits, health care, education, and recreational activities, other cultures may view them in a different light.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  German living is very similar to the American way of life; they both enjoy variety and a wholesome feeling to livingRead MoreAmerican Presence on German Culture Essay1887 Words   |  8 Pagesseparated by an approximate 100 yards of empty space littered with mines, armed sentries, and booby-traps. In Berlin, it eventually grew to an enormous stone barricade representing the division of a country between factions, and the separation of a culture. The entire wall spanned an approximate distance of almost 96 miles in area, which everyone came to know as the â€Å"Death Strip†. The Wall eventually became general knowledge around the world and stories of the dangers of the attempts to cross itRead More Informative Essay: German Culture: Facts, Customs and Traditions1289 Words   |  6 PagesNetherlands and, Poland. The culture built around Germany has a foundation of Art, Literature, Sports, Food, and Music. In addition, Germany’s torn pas t over war of its modern day is very different form our own, but is very similar in many other ways. However to truly understand the unique culture of Germany, one must know the origin of the unique Art’s, Literature, Sports, Food and, Music, that Germany is known for. Germany has many interesting facts. Germans wear their wedding rings on theirRead MoreEssay on German Renaissance and Its Influence on Austrian Culture1109 Words   |  5 PagesThe German renaissance took place during the sixteenth century in Europe. The Renaissance was a time of discovery and learning. The word renaissance means rebirth or revival. The German renaissance inspired just that, a revival and rebirth of education and art. The people of Europe became interested in art and music during the renaissance. Education was also changing as the people became more interested in sciences and philosophy. German art work from this time period was dominated by localRead MoreVitamin Water Entry Strategy1199 Words   |  5 Pagesdrinks that can be seen through statistic where it shows Germany ranked 14 out of 18 countries at 72.8L per capita much less than the world average of 89.8L. (Nation Master, 2011) Germany is ranked 5ths in the world for bottle water consumption; Germans are known to consume 109.2L of water per capita. They rank higher than the United States and Canada who sit at seven and eight place, respectively. (Nation Master, 2011) As statistics shows it can be said that if vitamin water were to be introduced

Living Out Loud free essay sample

I was born with a loud mouth. Not in the figurative sense, I am actually quite good at keeping secrets. I mean that I am literally a loud person, and I love to talk. My friends have heard me from the top floor of our school when I am beginning to ascend from the first floor, my voice almost always sticks out in a choir, and I am frequently asked by the respective authoritative figure to yell to get a bustling group’s attention. I am LOUD! It was not like anyone ever told me, â€Å"Hey, idiot, you’re being too loud.† It was more subtle than that. It came to a head when I was in a production at a local theatre of The Little Mermaid in ninth grade. I felt like there was some resentment from my other cast members. I eventually asked my friend who played Sebastian if he knew why. We will write a custom essay sample on Living Out Loud or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page His response to me was, â€Å"Mar, you just have such a big personality. Not everyone can take it.†This was not the first time I had been told something like this. The message was clear: the world wanted me to shut up. I started with changing how I stood. I no longer took a confident neutral stance, but one that had slightly slumped shoulders and hands that held one another. I no longer approached strangers in group situations to make friends, but sat quietly with my head down. If someone talked to me, I would make conversation, even a few jokes. But I was trying to crush the loud, talkative girl that had earned me so many unsettling reactions from those around me. Every time I met someone new, I was so concerned they would think I was odd if I was loud. I genuinely thought people would be discouraged from being my friend, or even hate me. I had not even realized I had changed so much until a singing teacher whom I respect immensely challenged me on my apologetic demeanor. There were many people in the class who I really wanted to like me, and every time I did something, I was worried the class would laugh, or I would look stupid and weird. The teacher told me flat out, â€Å"You need to stop apologizing for making strong choices. Every time you make a choice, you look to us for approval. Even right now, as you sit here in front of us, your body is apologizing for your presence.† It was not until that moment I became aware that I was so concerned about the opinions of those around me. I was so worried about being conceived as the weird loud girl that I had manipulated my own personality and physicality to reflect that fear. I was forced to confront the fact that I had changed my outgoing attitude to fit some mold I thought the world had created for me. From then on I would try to force myself to walk with my shoulders straight, look people in the eye when I talk to them, and talk to people who I had previously been afraid to talk to. Truthfully, I am still working on it. I still stare at the street instinctively and occasionally feel afraid to let someone I just met see the actual version of myself. But I am much better than I was even a month ago. I want the world to know me in all my glory: a singing, laughing, horrible-joke telling, answering-back girl. I was born with a loud mouth, and I can’t let anything change that. If you ask me what I came into this life to do, I will tell you: I came to live out loud. Emile Zola