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Central bank:this is the highest financial institution in a country (i.e the apex bank) which carries out the monetary policy of the government
The major difference between the banking and the non-banking financial institution is that the liabilities of the banking institutions are counted as part of the total supply of money while those of the non-banking institution are exclude from money supply.... Also ,banking ,financial institution include,commercial,merchant,development banks while non-banking financial institution include, insurance companies,hire purchase companies,building,societies.
(i)provision of loan and overdraft to their customer who which to engage in business.
(ii)provision of documentary credit: this is one of the function of commercial banks which help to provide commercial credit facilities to exporters,which help them in payment of goods.
(iii) provision of financial advice:commercial bank encourage and advise businessman on the type of project they should invest their money in.
(iv)another contribution is that commercial bank help to facilities international trade by providing credit to exporter,and this facilitate payment in foreign trade
(i) Import substitution: it involves deliberate attempt by government aimed at encouraging the growth of industries within the country which produces goods and services which would have been imported.
(ii) Export promotion: it involves deliberate attempt by the government at encouraging the production of ( wapbaze.com) commodities for export. it is done through granting of tax concessions reducing export duties etc
International trade refers to the exchange goods and services that place across international boundaries.
Embargo: this the total ban on the importation of goods into the country for example a government. Country can place embargo on the importation of rice .this means would not be imported to that country.
Quota: this is another term used in barrier to trade. wapbaze.com. It is the limitation on import . their is certain prescribed number or quantity of goods to be imported to the of the country. Dis prescribed quantities must not be exceeded.
(i)free trade area: This is defined as the
type of integration in which members
countries agree to remove all barriers to
trade among them.
(ii)Custom unions: This is defined as an
agreement among nations to remove
trade barriers and set a common barrier
to import from non member countries
(iii)Common Market: This is described as
an economic community in which there
is a common internal and external tarrif policy
(iv)Economic Union: This is a form of
integration which takes the form of total
(i) Inadequate capital
(ii) Political instability
(iii) Inadequate infrastructural facility
(iv) Differences in fiscal and monetary
policy wapbaze.com.
6. i international trade involves the
exchange of
goods and services across national
frontiers while
domestic trade involves the exchange of
within the borders of goods.
6ii. In international trade buyer and
sellers use
different currencies where as buyers
and seller in
home trade use the same currency <br>visit<b>
www.allstuffz.tk/forum/showtopic.php?id=55 for the objective and full theory
2014-09-06 00:38 · Reply · (0)

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