finance

INTERNATIONAL CAPITAL MOVEMENTS

International Economics or international business has two parts – International trade and International Capital. International capital (or international finance) studies the flow of capital across international financial markets, and the effects of these movements on exchange rates. International capital plays a crucial role in an open economy. In this era of liberalization and globalization, the flows of international capital (including intellectual capital) are diverse and diverse across countries. Finance and technology (eg internet) have gained more mobility as factors of production especially through the multinational corporations (MNCs). Foreign investments are increasing significantly even for the emerging economies like India. This is in-keeping with the trend of international economic integration. A Peter Drucker rightly says, "Increasingly world investment rather than world trade will be driving the international economy". Therefore, a study of international capital movements is much rewarding both theoretically and practically.

Meaning of International Capital
International capital flows are the financial side of international trade. Gross international capital flows = international credit flows + international debt flows. It is the acquisition or sale of assets, financial or real, across international barriers measured in the financial account of the balance of payments.

Types of International Capital
International capital flows have through direct and indirect channels. The main types of international capital are: (1) Foreign Direct Investment (2) Foreign Portfolio Investment (3) Official Flows, and (4) Commercial Loans. These are explained below.

Foreign Direct Investment
Foreign direct investment (FDI) refers to investment made by foreigner (s) in another country where the investor holds control over the investment, ie the investor obtains a lasting interest in an enterprise in another country. Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants, or equipment. Thus, FDI may take the form of a subsidiary or purchase of stocks of a foreign company or starting a joint venture abroad. The main feature of FDI is that 'investment' and 'management' go together. An investor's earnings on FDI take the form of profits such as dividends, retained earnings, management fees and royalty payments.

According to the United Nations Conference on Trade and Development (UNCTAD), the global expansion of FDI is currently being driven by over 64,000 transnational corporations with more than 800,000 foreign affiliates, generating 53 million jobs.

Various factors determine FDI – rate of return on foreign capital, risk, market size, economies of scale, product cycle, degree of competition, exchange rate mechanism / controls (eg restrictions on repatriations), tax and investment policies, trade polices and barriers If any) and so on.

The advantages of FDI are as follows.
1. It supplements the meagre domestic capital available for investment and helps set up productive enterprises.
2. It creates employment opportunities in diverse industries.
3. It boosts domestic production as it generally comes in a package – money, technology etc.
4. It increases world output.
5. It ensures rapid industrialization and modernisation especially through R & …

Many good quality, single tenant, net leased properties qualify for both credit tenant lease (CTL) financing and conventional commercial mortgage lending. Net lease property investors should consider the pros and cons of each before deciding which type of loan to commit to.

CTL lending is generally best for the long term income investor who wants permanent, high leverage, fixed rate, fully amortized financing and desires speed and certainty of execution. Bank lending has a lower initial (but not overall) cost and can offer a larger variety of terms and conditions. Banks are best for investors who need options, don’t need maximum leverage (have large down-payment available), and who are not sure if they will hold a property for the long run.

The Difference

CTL lending combines aspects of commercial mortgage lending with specialized investment banking in-order-to close deals. A CTL banker issues and sells private placement corporate bonds that are secured by the lease on the real estate. The proceeds of the bond sales are used to fund a commercial mortgage loan for the borrower. The loan is administered by a third party Trustee throughout the life of the deal.

Traditional commercial mortgages are standard loans secured by mortgage liens against the real estate, the income the property produces and the credit of the borrower. Banking institutions originate a loan and fund the deal either by selling the loan to an investor (private or Government) or by lending its own funds and holding the loan in its portfolio.

Leverage

The ongoing credit crunch has forced banks to tighten up their lending criteria. It is highly unlikely that a commercial bank will offer any more than 75% loan-to-value (LTV) on any deal today. Banks have no incentive to take unnecessary risk; they can borrow money from the Fed (Federal Reserve Bank) at 0% percent and buy 10 year Treasury Bonds at 2% earning 2 points risk free. They will pass on high leverage loans and only lend where they have large amounts of protective equity.

CTL lenders will lend up to 100% LTV (lease fee valuation) on a non-recourse basis. They are in the business of loaning the full, current cash value of a lease (against the guaranteed future income). CTL bankers, without question, make the highest loan offers in the commercial real estate finance industry.

Speed and Certainty of Execution

CTL loans can close in about 1/3rd of the time it takes to close a conventional commercial mortgage. CTL deals have been known to be completed, from-start-to-finish, in as-little-as 45 days (unheard of in the world of commercial banking) but generally take 60.

Bank loans take at least 60 days, sometimes 180 or more. Also, because CTL deals either qualify or doesn’t, a banker can give a borrower a solid yes or no very quickly. There are a thousand ways a bank loan can fall through but, once a CTL banker commits to a deal and a borrower signs off, there is a near 100% certainty of execution.

Recourse

CTL …

Standby letter of credit (SBLC) funding or the monetizing of bank instruments including Bonds, SBLC’s, BG’s, LC’s or SKR’s to fund projects are on the rise. While lending from traditional institutions has virtually come to a production stand still, the monetizing of instruments is on the rise; and for good reason.

SBLC funding or the monetizing of bank instruments is very popular because there are no traditional credit requirements, asset requirements or down payments associated with conventional funding or lending. However, there are very strict requirements in the approval process which includes a favorable compliance report associated with Homeland Security and International Money Laundering Laws.

The process of monetizing bank instruments involves converting a secured instrument, usually backed by a cash, secured account or secured asset, into something legal tender. Many times, the secured or cash backed account or asset is held in a trust or another account in which the holder is unable to retrieve additional funds per the agreement of the account.

Why monetize? As an example, in the economic security of the market 5 years ago, hospitality financing was a very tedious and difficult industry to finance, but still attainable. Today, hospitality financing is almost impossible for those who are seeking new purchases, refinancing, remodeling or construction. If you currently own a hospitality property, the chances of getting funding are greater but depend on performance spanning over a 3 to 5 year period. SBLC funding for hospitality projects or monetizing an instrument can be the solution as there are no performance requirements; the performance is based on the guarantee of the instrument and not the property.

This also stands true for residential developments that are in the mid-stages of construction and halted by the inability to continue to draw on previously arranged credit lines. Commercial developments will also benefit by this method of funding as there are no “anchor” requirements or tenant rolls to supply. Alternative energy project financing are particularly viable for sblc funding or via monetizing a bank instrument. These overcome traditional funding sources tangible asset requirements.

The list is endless as to the uses of the funds for projects and developments. For example, monetizing can also be a viable solution to community economic development, housing and employment creation as well as debt consolidation for corporations and companies.

A few words of warning to those seeking bank instrument providers and monetizing companies. Fraud in this industry is on the rise. The instruments should be issued by Top 25 World Banks. Leased instruments can be monetized but it takes the expressed written permission of the holder of the instrument and of the issuing bank, stating the agreement between all parties and the expressed knowledge of the intention of using the instrument. There should also be a contract issued to the customer after approval, outlining the terms and conditions of instruments and monetizing.

Finally, fees should be deducted from the proceeds when monetizing so there are no upfront costs to you. Arranging instruments usually results in escrowed …

Most people don’t really understand the truth behind our banking system because it isn’t taught in our schools, not even to financial professionals. Oddly enough, the inconvenient history is omitted from all educational curriculums. I obtained a business degree in finance and there was one thing that never was taught to me about the origins of our banking system that I believe is key to the state of our banking system and our economy today. It is the fact that it was created under cover of legislation that was supposed to protect the economy and stabilize it. That is the primary mission of the Federal Reserve Bank. However, the real motivation was to shield the owners of the banks from competition and create a cartel.

I was also created to start a franchise that could print a fiat currency. A fiat currency is one that has no basis of value except by the good faith in the government to pay its debts. It means that if more money is needed in the economy, the bank simply creates it. This central bank could also then take control of all the reserves of all banks to protect the more wreck less banks from runs at the cost of the conservative ones, and get access to taxpayer money when the bank is in trouble. All the while, the Federal Reserve Act of 1913 was sold as a law that would protect the public. In terms of stabilizing the economy, the Federal Reserve Bank has failed miserably. In terms of reaching its true and hidden goals, it has been extremely successful.

People believe that the financial crisis is somewhat of a mystery. But every financial crisis we have had since the Federal Reserve Banking System has been in place has been related to debt. Under the current system, debt is used to create new money or to shrink the supply of money (by paying debt off) to attempt to control the economy, and allegedly stabilize it. In reality, since the loans were made with money created from nothing, the bank loses very little money. It is money that it never had in the first place. Technically, a retail bank with too many bad loans becomes insolvent, so the game is to roll bad loans over into larger ones and creates more money and gives the borrowers more money to continue to make the interest payments. There is also insurance that backs loans, so the government will pay for bad loans with taxpayer money. The Federal Reserve Bank has convinced the government that allowing big banks to fail would create great hardship in the economy, however, it is the massive creation of debt that fuels this system that causes the great hardship when the final cost of bailouts is passed to the public in the form of inflation due to an excess supply of money created by excessive lending to cover bad loans.

There is a rich history of how the banking bailout system has …

Thus, choosing your moving company is something that can provide a great relief or further problems.

Resorting to a moving company is not the only action you can take. It all depends on the amount of things you have and the distance that separates one property from the other. You may be able to move most of your things by yourself or maybe all with the aid of some friends or family members. But take into consideration the fact that some furniture and appliances are fragile and should better be handled by professionals.

Costs And Alternatives

Hiring a moving company can be expensive. If you have to move especially delicate things like a piano for example, you may even have to hire the services of exclusive moving companies that will charge significantly higher amounts. You can shop around and compare prices but bear in mind that sometimes what is too cheap turns out expensive and the company will be transporting all your belongings which you surely consider valuable in more than one sense.

As explained above, the cost of hiring a moving company will vary according to the amount of things that you need to transport from one property to the other but mainly on the distance that separates both properties. If the type of things you need to move would allow you to transport them yourself provided that you had the transport means, hiring a moving company may not be your only possible solution.

It is also possible to rent a truck or a van where you can (with the aid of friends or relatives) carefully load all your belongings and transport them from your current residence to your new home. Bear in mind though, that you’ll need to fasten and secure everything so nothing gets damaged during the carrying. Using a proper cushion wrapping to reduce the risk of damage is an excellent idea.

Financing: The Simple Solution

Though moving companies can be expensive, you may decide that they are the best choice for you. If that’s the case, the good news is that you can obtain finance to move your belongings. Some moving companies will agree to provide several installments to finance the fees. Even if that’s not the case, you can still resort to other forms of financing in order to obtain the funds to pay the fees altogether.

You have mainly two alternatives: you can pay with credit card and use the ability to finance the balance on your credit card so you can pay as much as possible every month. Or (and this is my preferred solution), take a personal unsecured loan to pay for the whole fees and then repay the loan in the small resulting installments. This last alternative is probably the cheapest one because the interest rates on personal loans are considerably lower than the ones charged by credit card financing.…

If you live paycheck to paycheck, as my wife and I have many times for many years, or have ever said on a regular basis, “I can never get ahead” you may be addicted to poverty and not even know it.

The question, “Are you addicted to poverty” may sound ridiculous or even harsh but it is not meant to be. Truth is, millions of people are addicted to poverty but do not realize it. These demonstrate it through their spending habits, excessive debt, and lack of financial knowledge.

Much like the alcoholic or drug addict, I am sure even now, the “DENIAL” card is being drawn and put on the table.

Phrases like, “I am not an alcoholic, or rather “not a poverty-holic” are being expressed. Addicts are slaves to their addiction plain and simple. They live in denial. Some cannot stop the acquisition of bad debt, or the insatiable desire to spend which causes the bad debt. They know they do not have any extra to throw away but they do it anyway. After all,

“I have worked all week, I deserve this!”

The constant practice of “the prodigal lifestyle” puts millions everyday in utter financial despair while they blame the government and their next door neighbor for all their financial troubles. We live in a society of non-sober thinking that knows nothing about personal accountability, it appears this way anyhow. New generations of young people grow up everyday left to fend for themselves possessing less financial knowledge than the preceding generation.

Back to poverty…..

“I went by the field of the slothful, and by the vineyard of the man void of understanding; And, lo, it was all grown over with thorns, and nettles had covered the face thereof, and the stone wall thereof was broken down. Then I saw, and considered it well: I looked upon it, and received instruction. Yet a little sleep, a little slumber, a little folding of the hands to sleep: So shall thy poverty come as one that travelleth; and thy want as an armed man.” Proverbs 24:30-34

Poverty-holics say things like, “I can’t afford this” and teach their children “Money doesn’t grow on trees.” Meanwhile they lift no finger to educate themselves in the area needed the most, finance. So, the financial vineyard lays waste and unfruitful. In the U.S. some say, “This is America, just give me my paycheck and pack of beer, I don’t need to know anything about money, or accounting, or investing!”

Yet they struggle paycheck to paycheck as if it is the normal and right thing to do. Again I ask, “Are you addicted to poverty?” Some say they are Christians but are addicted to poverty and justify their poverty by using Bible scriptures to say it is okay and of God to be poor. Yet, no such scriptures exist.

If the American economy is to truly change, it will come, not when Christians justify their laziness, or Congress allowing the President to spend another half …

International business today compels people to travel around the world for meetings, transactions and negotiations and other corporate functions. A good business translation service should provide translators who possess excellent educational qualifications and a plethora of experience in the financial industry. Several institutions around the globe offer these services. It is important to determine the differences of language and civilization between countries, making effective translation service a must if business has to prevail.

• The significance of specialization

Providers of these services should have vast and solid understanding of finance and business. Bankers, stock brokers and economics majors are suitable for this job. Such knowledge would at least speak of unique vocation and association with the subject. The documents requiring translation are regulatory statements and reports, ports, mutual fund reports, notes of hands, financial statements etc.

• Experience

Enterprises see the corporate translation service experience, an agency has. Checking of repute and credentials may be helpful. Moreover experience generally speaks of the service providers' compliance and capability of rendering good customer services.

• Time is Money

Timely delivery of projects is of utmost importance. In legal and financial institutions, time is a constraint. Therefore deadlines must be met. Business translations are significantly more expensive than general translations.

In deciding whether your business fails or succeeds, the agency you hire for error-free corporate translation must deliver precisely the original meaning of the document with the words and style most applicable to the intended translation. A translator must not lose sight of context and comprehension. Consecutive interpreting services are meant to give the accurate version of speech or documents that sounds natural and transfers the message. To make the interpretation and transcription more natural, it is found that the translators work more in their native language in which they are proficient. It certifies the highest quality. Few ways to find good services for technical translation are:

• Find a specialist in the field.
• Look for a certified and experienced translator. If you want to get a legal document translated then look for somebody who is also a lawyer.
• Find a translator who is expedient in native language and is bilingual too.

Oral translation tips

• Critically understand and analyze the translated information.
• Enrich professional vocation.
• Highlight key elements in text.

Written translation tips

• Use a dictionary.
• Consult a specialist.
• Choose better variants.

The need for growing technical translations is growing and it is very difficult to find such translators, because they play a major role in deciding the business prospects. …

Is money good or is it bad? Depending how you view it, cash can be good but it has the potential to be a bad thing as well. Money can be good because it allows you the exact lifestyle you desire. It has the ability to fund your dreams such as going on holidays or could allow the chance for an early retirement. Money creates the chance to create a family, live in the city you want and allows to you to do anything you can imagine. Proper money management is the simplest way to understand personal finance basics.

The down side to money is if you live for it. By slaving away working at a place you don’t like to earn money makes it bad. Cash can misguide many of Americans to become workaholics and desert their loved ones.

Without a doubt cash does have more good aspects than bad. Unfortunately the bad things related to money are often tied with misuse or greed.

What is Money to you?

Is earning lots of money to live the life of luxury is important to you or do you want to make just enough so you can live modestly. The choice is simple with little grey area and we all make that choice when dealing with the personal finance basics in our lives.

If you want to work 60 hours a week so you can afford to drive an expensive vehicle and own a 4000 square foot home is the way you enjoy living then more power to you. Sadly, I believe|in my opinion} you have become a slave to cash if you must work that much to drive that car or live in that home.

On the other hand if you want to have 100% freedom and 0% responsibility then you are a slave to yourself. Money probably has no value to you and you make just enough to make ends meet. Is that bad? Who am I to say.

I’m certain there can be a happy medium when it comes to money. You can get all of the pros and none of the cons. Working hard is incredibly important but it’s good to know that you should not work for money. The more you understand personal finance basics, the more it will start to give back to you and the less you will be it’s slave.

The best advice I can give is to find an occupation that you love and would probably do it for free anyway. If you’re not happy at your job chances are it’s because you only see the dollar signs associated with the job. The way to make money a positive factor to you is to alter the way you think and love where you are. The great thing is, the more passion you put into everything in your life, the more money you will make and the happier you will be. In short you will work less and make more.

DID YOU LIKE

Are bad credit motorcycle loans possible? This is a question I am asked over and over again, whether it is just meeting a person on the street or though e-mail from a person that found my motorcycle financing website. Well the short answer is yes bad credit motorcycle loans are totally possible even if you have a bankruptcy on your credit report. However, there are certain things you need to consider before looking for a bad credit cycle loans because you can be taken advantage of just because you have poor credit.

First off understand that over and over again in the world of motorcycle loans, I see cycle buyers with bad credit tend to focus more on desperation for getting approved for motorcycle financing rather than making a good decision for there financial future. As a result, when the typical motorcycle buyer with poor credit is approved they are often stuck with hefty fees, and backend products that leave them paying much more for their motorcycle than they should.

If you have bad credit and need a motorcycle loan, the best advice I can give you is do not let someone tell you that you have to pay document fees, extended protection, Gap insurance or other add on products to get approved. Sure you may have to sacrifice for a higher interest rate on your bad credit motorcycle loan, but you do not have to get taken to the cleaners with a bunch of other fees.

It is the above reasons that it is important to try to sometimes go straight to the lender and find a lender that will finance bad credit motorcycle loans I am not going to tell you that it is easy to get approved like if you had good credit but if you work a bit you can find motorcycle lenders specializing in bad credit. Here are some options you may want to consider.

1. Online Motorcycle Lenders: The nice thing about working with online motorcycle lenders is that you are going directly to the lender and there is no middle man involved with placing you in a loan that may put you in a bad situation. Going directly to the lender for bad credit motorcycle loans is always better in my opinion because the lender does not want to place you in a loan you will default on. On the other hand, going through a middle man you will find the middle man will want to place you in a situation where they will make the most money which could be a very bad loan for you.

2. Credit Union: Your local credit union may buy bad credit motorcycle loan more often than the average loan at a dealer because the credit union only has a small percentage of its overall loan portfolio in bad credit motorcycle loans. This allows them to control losses a bit better than a dealer because they have other thinks finance not just motorcycles. So they may approve …

Global financing and exchange rates are major topics when considering a venturing business abroad. In the proceeding I will explain in detail what hard and soft contexts are. I will then go into detail explaining the reasoning for the fluctuating treaties. Finally I will explain hard and soft contracts importance in managing risks.

Hard currency

Hard currency is usually from a highly industrialized country that is widely accepted around the world as a form of payment for goods and services. A hard currency is expected to remain reliably stable through a short period of time, and to be highly liquid in the forex market. Another criterion for a hard currency is that the currency must come from a politically and economically stable country. The US dollar and the British pound are good examples of hard courses (Investopedia, 2008). Hard currency basically means that the currency is strong. The terms strong and weak, rising and falling, strengthening and weakening are relative terms in the world of foreign exchange (sometimes referred to as "forex"). Rising and falling, strengthening and weakening all indicate a relative change in position from a previous level. When the dollar is "strengthening," its value is rising in relation to one or more other treaties. A strong dollar will buy more units of a foreign currency than previously. One result of a stronger dollar is that the prices of foreign goods and services drop for US consumers. This may allow Americans to take the long-postponed vacation to another country, or buy a foreign car that used to be too expensive. US consumers' benefit from a strong dollar, but US exporters is hurt. A strong dollar means that it takes more of a foreign currency to buy US dollars. US goods and services become more expensive for foreign consumers who, as a result, tend to buy fewer US products. Because it takes more than a foreign currency to purchase strong dollars, products priced in dollars are more expensive when sold overseas (chicagofed, 2008).

Soft currency

Soft currency is another name for "weak currency". The values ​​of soft currencies fluctuate often, and other countries do not want to hold these currencies due to political or economic uncertainty within the country with the soft currency. Currencies from most developing countries are considered to be soft treaties. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currency to a currency such as the US dollar (invest words, 2008). Soft currency breaks down to the currency being very weak, an example of this would be the Mexican peso. A weak dollar also hurts some people and benefits others. When the value of the dollar falls or weakens in relation to another currency, prices of goods and services from that country rise for US consumers. It takes more dollars to purchase the same amount of foreign currency to buy goods and services. That means US consumers and US companies that import products have reduced purchasing power. At the same time, …