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International Finance Corporation

 ➤  1.  Establishment The International Finance Corporation was established in 1956 to encourage private enterprises and to increase the rate of economic development. The private enterprise is mainly responsible for very high rate of economic development in developed countries. In undeveloped in undeveloped countries, the projects of private competitive enterprises are not in existence on large scale. It is one of the reasons of slow economic growth of these countries. One of the economic backwardness of newly independent countries was that they have to wait for very long time for beginning the process of rapid economic development. There was worry of the failure of democratic system because of the different approach of private enterprises. ➤ 2. Objectives The IFC is an associate institution of the IBRD. Their objects are similar to that of objectives of IBRD. Following are the important objectives of IFC-   1.  To encourage foreign 2.  To enterprises private enterprises The IFC un

International Bank for Reconstruction and Development

1. Establishment The IBRD was established in 1944. The first half of the 20 th Century was of uncertainties at levels in social, economic and political fields. Developed countries in Europe were eager to increase the size of their kingdom. The world economy was badly affected because of this approach. It resulted in World Depression in 1929. Immediately after Second World Was it was essential to help the countries to come out of social, political and economic difficulties. In order to remove these difficulties the IBRD was established. The important tasks before the IBRD were:- 1. Reconstruction of economies of countries involved in Second World War. 2. Economic Development of countries. The government of India also faces the same problems of reconstruction and development of Indian economy immediately after independence. 2.  Objectives Objectives of IBRD are:- 1.   To achieve economic development of countries. 2.   To undertake reconstruction of countries. 3.   To remove

International Monetary Fund

World Depression of 1929 cancelled the gold standard It resulted in difficulties in World Trade, Exchange of Money and the Investment at the international level. The second     World War badly affected financial position of those countries involved in the War. In order to improve the financial position and the smooth settlement of financial transaction, economic co-operation was essential. There was a need of the Central Bank of the Central Banks. This kind of institutions was established in the form of the IMF. ➤ 1. Establishment Experts  from U.S.K., U. K. and other countries discussed at a length the issue of international economic co-operation. The outcome of this discussion was the United Nation Monetary and Financial Conference at Bretton Wood, New Hampshire, U.S.A. the conference was organized on 1s t  July 1944 to 22nd 1944. The representative of the 44 countries attended the conference. It completed the final draft of article of agreement of the IMF and the IBRD. The article

Social Responsibility of Business

1. DEFINITION OF SOCIAL RESPONSIBILITY Social  responsibility of business means duties and obligations of business towards different social groups I.g., shareholder, consumers, employees legal. 2. NEED FOR SOCIAL RESPONSIBILITIES OF BUSINESS The social responsibilities concept implies that business must behave like an ordinary citizen. It must discharge its legal, moral and social functions sincerely. The following factors explain in need for social responsibilities of business.    ➤  1. To protect Environment The  purpose of business is to create wealth and satisfy human wants. It usees the natural and human resources to produce goods and service. There is every possibility of the business misusing the resources for personal gains. Therefore the business must be made accountable and punished for its wrong deeds. This is possible by fixing social responsibilities on business.     ➤ 2. Good public image  A business which responds favorably to social needs enjoys a good reputation and

Market Segmentation

Market segmentation can be the defined as the process of dividing a market into distinct sunsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. The strategy of segmentation allows producers to avoid head on competition  in the marketplace by differentiating their offerings, not only of  price but also through styling, packaging promotional appeal, method of distribution and superior service.     Marketers have found that the costs of consumer segmentation research, shorter production runs and differentiated promotional campaigns are usually more than offset by increased sales. In most cases, consumers readily accept the passed-through cost increased for products that more closely satisfy their specific needs. In most cases Market segmentation in just the first step in a three phase marketing strategy.   After segmenting the market into homogeneous clusters the marketer then must select one or more segment t

Functions of Marketing

On the basis of functional approach classification of the marketing activities can be made in the following manner. A.  Exchange  Function The function involves three activities, I.e. Buying, Assembling and Selling. ➤ 1. Buying and Assembling Buying  is the one part of exchange process, other being the selling. Buying is the first step in the process of marketing. A manufacturer has to buy raw materials for production; a wholesaler has to buy goods to sell them to the retailer, a retailer has to buy goods to be sold to the consumer. Buying involves transfer of ownership of goods. Assembling means creation and maintenance of the stock of goods, purchased from different sources. The goods have sometimes to be collected and assembled at one place. This is generally done by middlemen. Buying and assembling are two distinct processes. Both these processes involve elements such as kind, quality, price, date of delivery and other terms and conditions. All these require specialized k

Corporate Social Responsibility

➤  1. DEFINITION OF CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility  is a commitment to improve community well being through discretionary business practices and contributions of corporate resources.  ➤  2. ALSO KNOWN AS         CSR is also referred to as:                      1. Corporate or business responsibility           2. Corporate or business citizenship           3. Community relations           4. Social responsibility ➤  3. MEANING OF CORPORATE SOCIAL RESPONSIBILITY (CSR) Corporate  Social Responsibility is the sense of obligation on the part of companies to build certain social criteria and manage the business activities by taking strategic decision. Socially responsible companies should consider various issues, from the organization of the firm to building relationships with the community. The issue of corporate responsibility has come into focus through industrial revolution. ➤  4. NATURE OF CORPORATE SOCIAL RESPONSIBILITY Complianc

Foreign Direct Investment(FDI)

Foreign Direct Investment (FDI) may be defined as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. The FDI Relationship consists of a parent enterprise and a foreign Affiliate which together form a transnational corporation (TNC). In order to qualify as FDI, the investment must allow the parent enterprise control over its foreign affiliate. FDI is now recognized as an important driver of growth in the country. The  Government is, therefore, making all efforts to attract and facilitate FDI and investment From Non-Resident Indians (NRIs) including Overseas Corporate Bodies (OCBs), which are predominantly owned by them, to complement and supplement domestic investment. In order to make investment in India attractive, investment and returns on them are freely repatriable, except where the approval is subject to specific conditions, viz. lock-in period on original investment, dividend c