International finance Essay Example | Topics and Well Written Essays - 2000 words

International finance - Essay Example In fact, the creation of International Bank for Reconstruction and Development (IBRD) as well as the International Monetary Fund (IMF), had both been the consequences of the conference. The innate characteristics of the conference had been – Firstly, the conference stressed upon the fixation of upper and lower limits for the exchange rates of any domestic currency. Such a system would help in reducing possibilities of financial distress owing to fluctuations in the rate of exchange. The upper and lower limits of the rate of exchange are on the other hand, made the domain of the national government with regard to their respective current account positions. To be precise, the domestic governments were allowed to make adjustments to up to 10% below or above the pegged rates of exchange. The domestic currency of any nation was made completely convertible with any other currency to ease foreign trade. Lastly, all nations were made members to the International Monetary Fund so as to make the latter’s task easier to conduct at times when a financial crisis takes place. The system collapsed during 1970s, though that did not mean that the whole world converted itself into a system of floating exchange rates. For instance, the nations underlying European Union follow a fixed exchange rate regime where they maintain a fixed rate of exchange with the Euro as well as between themselves (Alderman, 2011, ‘Europe’s Challenge: Fostering Growth Amid Austerity’). Answer to Question 2 According to the concept of uncovered interest rate parity (UIP), the difference between the rates of returns on domestic and foreign bonds must be equal to the expected change in the rate of exchange

International Human Resource Management Essay Example | Topics and Well Written Essays - 3000 words - 2

International Human Resource Management - Essay Example The liberalized economy was responsible for creating a competitive environment which required prompt response in order to control and stabilize the sudden turbulence in the economy. It was crucial from both the perspective of organisations as well as the economy on the whole. Human resource management practices play a significant role in enhancing corporate performance (Som, 2008, p.1278). This report seeks to understand the factors which have evolved the role of the human resource departments in organisations in India, with emphasis on the labour laws in organisations. A discussion has also been provided pertaining to the system of education and training, trade unions, the system of collective bargaining and employer organisations. The project also speaks of the present trends and patterns of the human resource management practices in India. It provides a number of data and case studies of different organisations in the nation which highlights the different approaches in HRM. In thi s regard, the project also discusses the various problems and issues that organisations in the nation have been confronting with. Current patterns and trends in the approach to HRM in IndiaThe context of organisational success in India remains deeply rooted in the nation’s history and culture. The value system in society enriched with respect towards elders, the joint-family system, the trend of future savings as well as the British rule in India have impacted the development of the workplaces in India. The large agrarian society embeds the culture of hard work, labour dignity and the concept of sharing of responsibility which accounts for the key components of success of the firms in India. The nation’s democratic governance has enabled the policy makers and financial institutions for setting the foundation for the country’s success (Websu-kat, 2008, p.1). One of the most important points worth mentioning is that there have been huge investments made by the Gov ernment of the nation in the field of education and population control. Great investments coupled with assistance from the developed nations of the world have been the major factors in creating the nation’s value propositions in the international market. Together with its own set of strengths and weaknesses the nation is identified as one of the leading emerging economies in the world. It also has entered into trade relations with a number of nations in the world (Websu-kat, 2008, p.1). Few of the major determinants which make the Indian HRM different from the rest of the world are s follows: The culture in India is rooted deeply in its collective values which provides a tendency of maintaining collaboration in the place of