Capital Account Convertibility

Capital Account Convertibility. Should India adopt full convertibility? Capital Account Convertibility-or a floating exchange rate-is a feature of a nations financial regime that centers around the ability to conduct transactions of local financial assets into foreign financial assets freely and at market determined exchange rates. It is sometimes referred to as Capital Asset Liberation or CAC. CAC is mostly a guideline to changes of ownership in foreign or domestic financial assets and liabilities. Tangentially, it covers and extends the framework of the creation and liquidation of laims on, or by the rest of the world, on local asset and currency markets. Current account convertibility allows free inflows and outflows for all purposes other than for capital purposes such as investments and loans. In other words, it allows residents to make and receive trade-related payments receive dollars (or any other foreign currency) for export of goods and services and pay dollars for import of goods and services, make sundry remittances, access foreign currency for travel, studies abroad, medical treatment and gifts, etc. Capital account convertibility is considered to be one of the major features of a developed economy. It helps attract foreign investment. It offers foreign investors a lot of comfort as they can re-convert local currency into foreign currency anytime they want to and take their money away. At the same time, capital account convertibility makes it easier for domestic companies to tap foreign markets. At the moment, India has current account convertibility. This means one can import and export goods or receive or make payments for services rendered. However, investments and borrowings are restricted. But economists say that Jumping into capital account convertibility game without considering the downside of the step could harm the economy. The East Asian economic crisis is cited as an example by those opposed to capital account convertibility. Even the World Bank has said that embracing capital account convertibility without adequate preparation could be catastrophic. But India is now on firm ground given its strong financial sector reform and fiscal consolidation, and can now slowly but steadily move towards fuller capital account convertibility. CAC has 5 basic statements designed as points of All types of liquid capital assets must be able to be exchanged freely, between any two nations, with standardized exchange rates. The amounts must be a significant mount (in excess of $500,000). Capital inflows should be invested in semi-liquid assets, to prevent churning and excessive outflow. Institutional investors should not use CAC to manipulate fiscal policy or exchange rates. Excessive inflows and outflows should be buffered by national banks to provide collateral. Prior to its implementation, foreign investment was hindered by uneven exchange rates due to transactions, and national banks were disassociated from fiscal exchange policy and incurred high costs in supplying hard-currency loans for those few local companies that wished to do business abroad. Due to the low exchange rates and lower costs associated with Third World nations, this was expected to spur domestic capital, which would lead to welfare gains, and in turn lead to higher GDP growth. The tradeoff for such growth was seen as a lack of sustainable internal GNP growth and a decrease in domestic capital investments. When CAC is used with the proper restraints, this is exactly what happens. The entire outsourcing movement with Jobs and factories going oversees is a direct result of the foreign investment aspect of CAC. The Tarapore Committees recommendation of tying liquid assets to static assets (i. e. investing in long term government bonds, etc) was seen by many economists as directly responsible for stabilizing the idea of capital account liberalization. The Reserve Bank of India has appointed a committee to set out the framework for fuller Capital Account Convertibility. The Committee, chaired by former RBI governor S S Tarapore, was set up by the Reserve Bank of India in consultation with the Government of India to revisit the subject of fuller capital account convertibility in the context of the progress in economic reforms, the stability of the external and financial sectors, accelerated growth and global integration. Economists Surjit S Bhalla, M G Bhide, R H Patil, A V RaJwade and Alit Ranade were the members of the Committee. The Reserve Bank of India has also constituted an internal task force to re-examine the extant regulations and make recommendations to remove the operational impediments in the path of liberalisation already in place. The task force will make its recommendations on an ongoing basis and the processes are expected to be completed by December 4, 2006. The Task Force has been set up following a recommendation of the Committee. The Task Force will be convened by Salim Gangadharan, chief general manager, in- harge, foreign exchange department, Reserve Bank of India, and will have the following terms of reference: Undertake a review of the extant regulations that straddle current and capital accounts, especially items in one account that have implication for the other account, and iron out inconsistencies in such regulations. Examine existing repatriation/ surrender requirements in the context of current account convertibility and management of capital account. Identify areas where streamlining and simplification of procedure is possible and remove the operational impediments, especially in espect of the ease with which transactions at the level of authorized entities are regulations are consistent with regulatory intent. Review the delegation of powers on foreign exchange regulations between Central Office and Regional offices of the RBI and examine, selectively, the efficacy in the functioning of the delegation of powers by RBI to Authorised Dealers (banks). Consider any other matter of relevance to the above. The Task Force is empowered to devise its work procedure, constitute working groups in various areas, co-opt permanent/special invitees and meet various trade ssociations, representative bodies or individuals to facilitate its work.

Documentary Personal Statement Example | Topics and Well Written Essays - 1500 words

Documentary - Personal Statement Example (Rosenthal 1996, 31-35) So while the genre title 'f 'documentary' is a useful one for Video Store owners, the conventions and styles used by documentary filmmakers vary so greatly that the term documentary really does not give the viewer much 'f an idea as to what to expect from their viewing experience. One mode 'f documentary is the institutional documentary. Institutional documentary is, in its most generic meaning, a documentary that is financially and legally supported, and more often than not, ethically regulated by the organisation that funds the project. Because 'f this, there is no one film maker behind the documentary who has creative control, as the institution funding the project is primarily concerned with documenting it's cause and this drives the content and often the style 'f presentation. The style 'f these documentaries are not really exciting and do not rely on dramatisation, rather they rely on using the power 'f the content to influence the viewer. This may make the documentary less interesting to watch but what we must realise in institutional documentary is that the institution is driven by a desire to convey a strong message but often limited by a strict budget. This leaves no room for special effects or extra scenes that may not be cost efficient, even if th ey may the documentary more 'entertaining'. The documentary film Facing the Music directed by Bob Conolly, a part observational and part performative documentary, is an example 'f an Institutionalised documentary. Concepts 'f the institution, the issue 'f funding and sponsorship, the questions 'f authority and resistance are all enmeshed in this documentary. The documentary follows the protagonist, Ann Boyd as she fights against the system that ultimately aims to destroy the music department at the University 'f Sydney. The directors in this case follow the institution 'f the Music Department, and document on what they see happening from their perspective. (Rabiger 1998, 1-7; Bruzzi 2000, 15-17) The film did not have a large budget and relies heavily on presenting the talents 'f the musicians studying at the University, and the passion and determination 'f Boyd to influence the viewer to see that the department should receive funding to continue to develop these amazing talents. The film moves slowly, does not make use 'f spec ial effects and relies heavily on content to influence the viewer. The content 'f the film is driven by the Music Department's desperate need for funding and aims to show the viewer just how important this Institution is. The film's purpose very much influences its style. While Institutional documentary is one form 'f documentary film, it differs greatly from other modes 'f documentary. Self Reflexivity is also another principle 'f documentary. It is defined as "any aspect 'f a film which points toward its own process 'f production" So since we are aware 'f the processes through out the documentary that created it, such as camera equipment in view, the voice 'f a person behind the camera to an interviewee or anything that points towards this aspect, it in fact makes the Documentary feel more

The Google Story Book Report Essay Example | Topics and Well Written Essays - 1250 words

The Google Story Book Report - Essay Example With fascinating characters like Larry Page and Sergey Brin and CEO Eric Schmidt, one is bound to turn the pages of this book and fast. My personal favourite among these characters presented by the authors is Larry Page for his sense of wit more than anything else. Also, he has shown immense perspective where thinking out of the box and having tremendous foresight is concerned. With his characteristic quiet sense of humour he is a man who makes things happen. Unassuming as he comes across, he has been hailed as a hero by many. As an example, this hero celebrated the first check earned for Google by having breakfast with his partner at Burger King! (Vise et al, 2006) This might also be due to the fact that he is the precursor of the social movement created by Google which brings people and information within close proximity of each other. The Google story, has a vast story board set across a plethora of settings and shaped with tons of research. This is apparent in the details presented in the book. Also, there is a strong personal and human touch to the story and the way it has been told, a style that is a welcome departure from the typical academic format followed by most writers of such subjects. This makes the book all the more hard hitting. In this regard, I will seek to examine various elements that are most relevant in today's dynamic environment and pace of life. The first of these elements is management style. Google, as a company and a global brand, has a flexible management style where every employee is an individual resource. Also, this company is adaptive in its style and its management is one that focuses on an investigative approach to each problem. Further, its management style is one that demonstrates a vast representation of the countries it operates in, where work culture is concerned. (Vise et al, 2006) Google has set new standards in unique management styles by showing how each company needs to tap into the personal goals of its employees to create and maintain a distinctive style that will contribute to the same and help integrate the organization's goals with those of the individuals working within. In this regard, Google's management style is one that is forward looking and based in results and employee satisfaction. It has a strong nexus with the humanitarian approach to all problems, which makes it all the more enjoyable to work here and be a part of the Google team. Also, the fact that it is very informal and effortless in its approach to everyday operations, makes it all the more easier to relate with Google at a personal level. Globalization is another element that contributes to the basic image of Google. As a company that has a specific set of services and virtual products as far as global outreach is concerned, Google has ushered in an era of vast information and knowledge management. Therefore, globalization has been Google's middle name and this has been thoroughly examined in the book by Vise and Malseed. Google has helped shape the global cultural industry with its services like Orkut, which