The Market of Hand-Made Goods

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While most investors join the technology bandwagon, and it certainly has its merits, you can find a fresh market by focusing on more indigenous trades and specialties. Not only will you find an eager market, you will also be able to level the economic growth in the country of India, which is significantly focused in the cities, leaving country dwellers far behind in advantages and income, although they have their own set of strengths and ambition. By advertising these rural area’s expertise and culture and giving them a global market to participate in, you can create a profit for yourself while benefiting and maintaining the culture of the beautiful and unknown areas of India.

Crafting projects are perfect for these areas, as you can begin to offer hand-made, quality goods, such as necklaces, journals, scarves, and other clothing and accessories, to a global market that is eager for original, non-factory goods. Many of these places will already have their own crafts, trades and traditions and will already be skilled workers who can be easily trained to take on these projects. This means that you do not have to create a new product, but can simply begin marketing what these people are already experts at producing.

Many companies have already grasped the importance of this market and are making use of the Internet to sell these goods to buyers in England, the United States and Canada. Finding and partnering with these companies, as well as taking a vested interest in the well-being the Indians being hired can help you create a new and more stable corner of the market. Stability in these areas are of the utmost importance, for the sake of the workers and that province of India, but also for your business. Finding a property management like Arlington Property Management may be a good way for you to ensure that your investment is stable.

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MBA Education Studies Indian and American Economies

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An MBA conference was recently held at Shanghai Jiao Tong University’s Antai College of Economics and Management in Shanghai, China. Among the many speeches and workshops carrying the conference’s theme of “Reshaping Business Schools after the Crisis,” one talk discussed India’s growing economy and how it will affect MBA education.

According to Dr. Debashis Chatterjee, Director of the Indian Institute of Management Kozhikode (IIM-K), “India, and the Indian Management Thought has a lot to contribute to the world. There are 4.6 billion people in the world who require high quality but low cost products and services. Indian businesses have proved that they can deliver world class solutions for global needs in areas like Telecom, Healthcare, IT/ITES”.

The MBA conference attracted many business leaders and officials from more than 75 business schools from across the globe. Key themes included “Redefining networks of collaboration and competition among business schools” and “Reorganizing the governance, structure, and missions of business schools”. These representatives are studying business school education and how MBA programs can help develop world economics.

Though India’s economy is growing a rapid rate, America’s economy is still struggling. To get through financial difficulties, many individuals have opted to take out loans or apply for prepaid credit cards. Many of these options are used when people need emergency cash to pay for utility bills, groceries or other expenses.

Depending on the type of loan that is being administered, money is either given to an individual via check or placed directly into a person’s bank account. Prepaid credit cards often work like a debit card and have a specific line of credit applied to the account. With a prepaid credit card, people can pay bills online, make purchases anywhere credit cards are accepted, and access funds from ATMs worldwide.

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Commercial Paper

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In business finance, Commercial Paper (CP) refers to an unsecured payment contract. Maturity of this contract lasts up till 270 days. Commercial paper is a short-term business finance option. Since it is a collateral-less business finance option, only corporations that have favorable credit ratings get funds. Interest rates of commercial papers depend on the demand and supply of other types of prevalent business finance options. Certificate of deposits and commercial bills are some of other types of prevalent short-term financial instruments.

Credit research agencies like Credit Rating Information Services of India Ltd. (CRISIL) and a host of others may be employed by the Reserve Bank of India to determine the credit ratings of the borrowers.

Understanding a CP at a high level would be to look at it as a hand-loan given without any collateral backing. The hand-loan provider would only require a promissory note. It should be noted that the hand-loan provider would only give funds based on reliability and trustworthiness of the borrower.

India, as a rising economy has had numerous benefits from commercial papers. Funds mobilized through commercial papers stood at about forty six thousand crores as of 2008. Given the difficulties posed by the RBI for freewill external borrowings, commercial papers are proving to be an excellent source for short-term business finance.

Indian companies have benefited from the fact that commercial papers provide business finance at a much lower interest rates. Also, it need not come under the scanner of the Securities and Exchange Commission, if the maturity period of the CP is less than a year. Increase in RBI’s lending rate to banks, has increased the demand for commercial papers. RBI’s lending rate, also called the repo rate, has forced banks to also increase their lending rates. So businesses are forced to look for other alternatives. And a CP business finance option is one such enticing alternative.

Commercial papers keep a balanced borrowing power of companies from banks. Their short-term maturity model means that they self-liquidate. Commercial papers are immune to market speculation, which makes them an all the more attractive business finance option.

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External Commercial Borrowings in Indian Business Finance

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All foreign exchange borrowings by Indian companies come under the scanner of External Commercial Borrowings (ECB) policy. Business finance instruments that fall in the external commercial borrowing category are buyer and supplier credits, bonds, credit from multilateral institutions, and so on.

Buyer’s credit is when business finance is sought from banks in foreign countries. Suppliers credit is when a manufacturer or exporter funds the buyer to buy the exporter’s goods. In the case of supplier’s credit, the exporter will take a promissory note from the importer. A post-dated cheque might also be prepared with the bank of the importer. By discounting the cheque, the exporter might realize the money. All these things happen only between businesses that have maintained a trustworthy relationship.

Another source of external commercial borrowing is foreign currency convertible bond. Before it is realized in the local currency, this bond converts to the local currency from its parent currency. Typically issued by a foreign country in its own currency, businesses other countries buy these bonds and later convert it into the local currency.

External commercial borrowings, and especially foreign currency bonds have been an excellent way for India to raise business finance. Automatic route and approval route are the two ways that Indian companies use to mobilize business finance through external commercial borrowings. External commercial borrowings for investments in real estate, infrastructure does not require approval from the reserve bank of India. These investments come under the automatic route. Government approval is required for all other external borrowings.

Indian companies planning to expand their capabilities have sought foreign currency convertible bonds extensively. To quote some examples that depict the trend in external commercial borrowings; HPCL Mittal Energy, raised business finance to the tune of $175 million through external commercial borrowings. Ranbaxy laboratories raised business finance of around $50 million this year through external commercial borrowings. All this indicates that if the government encourages this trend, local banks are not pressurized to supply monetary resources. Although more external debt might be added to the Indian economy, India’s robust growth ensures that debts don’t remain as debts.

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