International Business

Management
UNIT 4
Ms. Vidhya.j
Assistant professor, ssm
International Business and Financial
Institutions
• Introduction, Factors causing Conflicts, Conflict between the Host
Country and Transnational Company, Negotiations, Role of
International Agencies, IMF, International Liquidity and SDRs,
World Bank (IBRD), IDA, IFC, UNCTAD.
International business and Financial
Institution
International liquidity and IMF
International liquidity before 1960 as the Bretton woods
agreement provides the fixed exchange rate of one ounce of gold
is equal to US$35
The member countries are allowed to hold the reserves in form of
US dollar,gold and Sterling pounds
Objectives of IMF
• Avoid the competitive devaluation and exchange control
• Exchange and maintain currency convertibitlity
• Develop multilateral trade and payments
• To promote International monetary cooperation
• To provide exchange stability
International liquidity and special drawing
rights
• Central banks of the country maintain the Internationally
acceptable assets like bullion ,international
borrowings,commercial credit operations,hard currencies,foreign
securities,and SDR’s in order to settle the balance of positions
International bank for reconstruction and development
(July 1-22,1944)
• To assist in the reconstruction and development of territories of
its members by facilitating the investment of capital for productive
purpose
• To promote private foreign investment by means of guarantees
• To promote long-range balanced growth of International trade
• To provide loans for the long term projects through any channels
International Development Association(1960)
• To provide finance on easy terms to the less developed member
countries
• To provide assistance for poverty alleviation in the poorest
countries
• To provide finance at concessional rates
International Finance corporation
Assistance to the member countries
Direct investment
Foreign and local capital
Technical assistance
Capital markets development
Help to small scale industries
UNCTAD(UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT)

• Investment,technology and enterprise development

• Macro-economic policies,debt and development
financing
• Transport,customs and Information Technology
• Special programme for least developed,landlocked
developing and small island developing countriess
Thank you