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European Monetary System

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   European Monetary System Origin of the European Monetary System: The dollar crises which led to the breakdown of the Bretton Woods System prompted the EU countries to establish the “Snake in the tunnel” in 1972. Under this arrangement, the EU currencies were tied together and could fluctuate within narrow limits in relation to one another “(snake in the tunnel”) but jointly floating against other currencies of the world (“the snake out of the tunnel”). But this arrangement was brief and sporadic because countries moved into or out of the arrangement with changing circumstances. After 1973, the “snake” was left to float against the dollar and the tunnel vanished. In the end, the “snake” became a German Mark currency area, with Germany the only large country of the EU. However, the “snake” was the forerunner of the more comprehensive European Monetary system. At the initiative of France and Germany, by the Bremen Declaration of July 1978, the European Council decided to estab...
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Foreign Exchange Exposure

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   Foreign Exchange Exposure Definition: Foreign Exchange Exposure refers to the risk associated with the foreign exchange rates that change frequently and can have an adverse effect on the financial transactions denominated in some foreign currency rather than the domestic currency of the company. In other words, the firm’s risk that its future cash flows get affected by the change in the value of the foreign currency, in which it has maintained its books of accounts (balance sheet), due to the volatility of the foreign exchange rates is termed as foreign exchange exposure. It is not only those firms who directly make the financial transactions in the foreign currency denominations faces the risk of foreign exposure, but also, the other firms who are indirectly related to the foreign currency is exposed to foreign currency risk. For example, if Indian company is competing against the products imported from China and if the Chinese yuan per Indian rupee falls, then the importe...
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CO-OPERATIVE MANAGEMENT- RESOURCES TO MANAGE

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   CO-OPERATIVE MANAGEMENT         RESOURCES TO MANAGE   Like any other business, three major types of resources must be managed in a cooperative - people, capital, and facilities. People  The most important resource in a cooperative is people. The success of all phases of the business depends on competent personnel working together smoothly and efficiently. In a 1994 study conducted by Janice Dresbach, Ohio State University, cooperative mangers said training was highly important in the areas of improving customer relations, educating members about the cooperative way of doing business, working effectively with a board of directors, identifying member needs. In an earlier study, managers cited the ability to deal effectively with people was the qualification most important to the success of the best manager they had ever known. Ability to size up a situation and act accordingly was ranked next in importance. Qualifications considere...
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What Is International Trade?

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   What Is International Trade? International trade theories are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. In this section, you’ll learn about the different trade theories that have evolved over the past century and which are most relevant today. Additionally, you’ll explore the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? “Around 5,200 ...
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DISCUSSION OF DO’S AND DON’TS OF GROUP DISCUSSION

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    DISCUSSION OF DO’S AND DON’TS OF GROUP DISCUSSION v   Introduction v   Definition of group discussion v   Importance of group discussion v   What are the skills that are judged in a GD? v   Do’s of participating in a GD v   Don’ts of participating in a GD v   Points to be kept in mind before the GD                        1. Current Affairs                        2. Historical topics                        3. Sports, Arts & Literature                      ...
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