Tuesday, January 4, 2011
What is this India inc.?
this the most common term you will listen read almost every day more than one time whenever you move to the business page or tune to a business channel
often i wondered this might be India's biggest company which manufactures steel and coal
how stupid of me today i wondered what it is
it is a term often used by Indian media to define the or refer to the corporate sector of the nation
often i wondered this might be India's biggest company which manufactures steel and coal
how stupid of me today i wondered what it is
it is a term often used by Indian media to define the or refer to the corporate sector of the nation
who controls the internet?
When the Internet was originally designed, one of the goals was that there would be no “central point of failure”. It was originally a military project, and the idea was that the network would keep functioning even if it got damaged. Even if you were to damage the Internet so much that if was broken into two completely separate pieces, those two pieces would still work. You would be able to communicate with every computer in your piece.
In that sense, no one controls the Internet. Every computer is equal and they all connect to each other equally.
However, countries and companies exert control over the Internet. For example, if you are using a computer inside a company, that company can easily control your access to the Internet. The company can make certain services and certain sites inaccessible to you by blocking them at the firewall. In the same way, in a country like China, the cables that bring the Internet into the country are under government control. So China can control all kinds of things with a nationwide firewall.
another answer which i would like to share when i searched over the internet is---The official answer is no one, but it is a half-truth that few swallow. If all nations are equal online, the US is more equal than others.
Not that it is an easy issue to define. The internet is, essentially, a group of protocols by which computers communicate, and innumerable servers and cables, most of which are in private hands. However, in terms of influence, the overwhelming balance of power lies with the Internet Corporation for Assigned Names and Numbers, based in Marina Del Rey, California.
ICANN is a not-for-profit organisation that regulates online addresses, known as domain names, and their suffixes, such as ".com" and ".org". Since ICANN reports to the US government's Department of Commerce, the domain name process is effectively overseen by the US government. China, Russia and Europe have all expressed concern ...
who decides the value of a currency?
Currency value is determine by the purchasers of the currency. These are primarily travelers, governments and Forex traders. FOREX stands for Foreign Exchange. There are many factors that currency traders, governments and businesses take into consideration in determining the Fair Market Value of a currency.
Fair Market Value is the price at which a willing buyer and a willing seller come together. The buyer must factor in many elements and considerations to try to accurately assess a currency's value at any given time. There are approximately 180 different currencies in the world now.Many things that i wanted myself to be aware of
Theirs one particular quality in me that people from time to time have maid me aware of, sometimes it has proved good for me and good for others as well and sometimes it has had adverse effects i.e it annoys others and then i get annoyed. I am sure by the end of this blog you will be crystal clear about what idiosyncratic trait of my nature i have tried to penned down.
Ever since i got some power to think in my minuscule head, i became curious about whatever came in my way, may be i was always curious about way things functioned or who decides their blueprint or the rules of the game and why which was a good thing but not so often as i mentioned above anyways this aspect of mine cannot be cured so it should be better endured. I was always inquisitive about they ground rules are set up for most of the things that work around us and how are these guidelines decided take for an example a simple question i asked somebody how is the value of our currency decided?
cause what i basically meant was if this piece of paper or metal is what people are fighting for in their entire life, and this piece of paper with abstract art of famous politicians around the world and in different colors is what has the power to have anything u desire then all we need to do is print them in huge quantities and supply them to the poor this solves the elephantine problem of poverty which solves many interlinked other problems but regretfully this aint going to happen as i had my basics wrong, if its all about printing multicolored papers then the printing mills owner must be the king of the world, unfortunately he isnt so i began my search to find out what decides the value of our money and how much can we print and circulate?
their are a few basic prerequisites u need to know to understand what i learned today
exchange rate --the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. basically the worth of one currency in terms of another currency.
their are two types of exchange rates as well spot exchange rate(current exchange rate) and forward exchange rate(rate quoted today but will be delivered on some other day).
PPP--purchasing power parity
however what i can infer from it compares the purchasing power of one country to another for a particular commodity and when they are calculated for various commodities they are clubbed to determine the exchange rate between them.
IMF-- International Monetary Fund
is an intergovernmental organisation which supervises global financial system it basically has a hand in deciding country's exchange rate by keeping track of all the transactions the demand of one currency and the amount or purchase of other currencies and it also provides loans to other poorer countries as well keeps the balance of payments it has its headquarters in Washington United States it has many member countries and has faced much criticism as well india us china japan are few key members of this organization
Members of the IMF are 186 of the UN members and Kosovo
how are decisions taken here? Major decisions require an 85% supermajority.[24] The United StatesEuropean Union have a combined vote of 710,786 (32.07%).[25] On October 23, 2010, the Ministers of Finance of G-20, governing most of the IMF member quotas, agreed to reform IMF and shift about 6% of the voting shares to major developing nations and countries with emerging markets
has always been the only country able to block a supermajority on its own. The following table shows the top 20 member countries in terms of voting power (2,220,817 votes in total). The 27 member states of the
india has 1.91% quota in it
china and japan have 3.72 and 6.12
where as us has the largest about 17%
okay
now lets come to the crux of the matter
how are exchange rates decided ?
value of a currency is determined by its demand in the international market
like other commodities which can be sold or bought currency can also be bought or sold so basically if i need to buy a tv from usa i need to pay the vendor the currency of usa to buy it which is obviously dollars so first of all i need to buy dollars and then i can trade dollars for getting a tv
this is how we trade currencies and now if demand of a currency is more that is more and more goods are being bought from that currency or all transactions are taking place in that currency so that currency will become strong and that currency when bought will give that country a lot of other country's currency to buy their goods that's how the things work
thats why value of a currency in terms of another currency will
.depend on the thing being traded(i mean various commodities)
.the ppp purchasing power parity
.amount of gold reserves a country has
.the price of that commodity being bought or sold in two different countries
.inflation rates in the two countries
.imf international monetary fund
After the gold standard and the US dollar standard fell, the world entered an age of the floating currency exchange. This means that everyday a nations currency might be more valuable or less valuable than the day before. What determines the fluctuations? Buyers. Countries all over the world purchase other countries currencies, which determines the value. The American Dollar is strong because many countries buy a whole lot of US Dollars. If investors and buyers decide to stop buying US Dollars, then the value of the US dollar would drop significantly. Now if countries like japan and china Japan about whom some economists argue that they intentionally keep the exchange rate low so that buyers on the world market will not purchase the Yen for example.
You would think that a weak national currency would indicate that this country is poor. Not always the case (China is a good exampe), the argument is that nations like Japan and China want their currency to be low in value so that other nations (like the US) will buy more Japanese and Chinese products imported. Think about it, if the US dollar is twice as strong as the Yen, than it can buy twice as many Japanse goods. If a computer costs 1,000 dollars in the US, but 1000 Yen in Japan, than you could buy two Japanese computers. make sense?
The Yens value is tampered with by the Chinese Government. It is fixed a price determined by other currencies to minimize its value thereby allowing for more exports this will increase the demand of yen in the market.and a time when all the trade is being done in yen it will increase its value by stop producing more currency and then we will be able to buy less yens in the same amount of dollars as the price has got high
However, Bank of Japan manipulates the currency market by flooding the market with yen. This keeps the value low thus increasing the attractiveness of its exports high. This is all much to the dismay of the US who would like Japan to buy some American stuff with all of that US currency they are hanging on to. But, buying consumer items from another country is not necessarily beneficial to Japan in the short term, and they can't see the long term.
What they often do is use that money to buy land in Hawaii and other states. Of course this doesn't do anything to affect the trade deficit
Japan is the world wealthiest nation and second largest economy after the USA. exchange of a nation can be either under fixed(set by govt./central bank) or flexible exchange rate(determined by demand and supply conditions in the forex market); as an economist
Ever since i got some power to think in my minuscule head, i became curious about whatever came in my way, may be i was always curious about way things functioned or who decides their blueprint or the rules of the game and why which was a good thing but not so often as i mentioned above anyways this aspect of mine cannot be cured so it should be better endured. I was always inquisitive about they ground rules are set up for most of the things that work around us and how are these guidelines decided take for an example a simple question i asked somebody how is the value of our currency decided?
cause what i basically meant was if this piece of paper or metal is what people are fighting for in their entire life, and this piece of paper with abstract art of famous politicians around the world and in different colors is what has the power to have anything u desire then all we need to do is print them in huge quantities and supply them to the poor this solves the elephantine problem of poverty which solves many interlinked other problems but regretfully this aint going to happen as i had my basics wrong, if its all about printing multicolored papers then the printing mills owner must be the king of the world, unfortunately he isnt so i began my search to find out what decides the value of our money and how much can we print and circulate?
their are a few basic prerequisites u need to know to understand what i learned today
exchange rate --the exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specify how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency. basically the worth of one currency in terms of another currency.
their are two types of exchange rates as well spot exchange rate(current exchange rate) and forward exchange rate(rate quoted today but will be delivered on some other day).
PPP--purchasing power parity
this what i found on net about ppp
however what i can infer from it compares the purchasing power of one country to another for a particular commodity and when they are calculated for various commodities they are clubbed to determine the exchange rate between them.
IMF-- International Monetary Fund
is an intergovernmental organisation which supervises global financial system it basically has a hand in deciding country's exchange rate by keeping track of all the transactions the demand of one currency and the amount or purchase of other currencies and it also provides loans to other poorer countries as well keeps the balance of payments it has its headquarters in Washington United States it has many member countries and has faced much criticism as well india us china japan are few key members of this organization
Members of the IMF are 186 of the UN members and Kosovo
how are decisions taken here? Major decisions require an 85% supermajority.[24] The United StatesEuropean Union have a combined vote of 710,786 (32.07%).[25] On October 23, 2010, the Ministers of Finance of G-20, governing most of the IMF member quotas, agreed to reform IMF and shift about 6% of the voting shares to major developing nations and countries with emerging markets
has always been the only country able to block a supermajority on its own. The following table shows the top 20 member countries in terms of voting power (2,220,817 votes in total). The 27 member states of the
india has 1.91% quota in it
china and japan have 3.72 and 6.12
where as us has the largest about 17%
okay
now lets come to the crux of the matter
how are exchange rates decided ?
value of a currency is determined by its demand in the international market
like other commodities which can be sold or bought currency can also be bought or sold so basically if i need to buy a tv from usa i need to pay the vendor the currency of usa to buy it which is obviously dollars so first of all i need to buy dollars and then i can trade dollars for getting a tv
this is how we trade currencies and now if demand of a currency is more that is more and more goods are being bought from that currency or all transactions are taking place in that currency so that currency will become strong and that currency when bought will give that country a lot of other country's currency to buy their goods that's how the things work
thats why value of a currency in terms of another currency will
.depend on the thing being traded(i mean various commodities)
.the ppp purchasing power parity
.amount of gold reserves a country has
.the price of that commodity being bought or sold in two different countries
.inflation rates in the two countries
.imf international monetary fund
After the gold standard and the US dollar standard fell, the world entered an age of the floating currency exchange. This means that everyday a nations currency might be more valuable or less valuable than the day before. What determines the fluctuations? Buyers. Countries all over the world purchase other countries currencies, which determines the value. The American Dollar is strong because many countries buy a whole lot of US Dollars. If investors and buyers decide to stop buying US Dollars, then the value of the US dollar would drop significantly. Now if countries like japan and china Japan about whom some economists argue that they intentionally keep the exchange rate low so that buyers on the world market will not purchase the Yen for example.
You would think that a weak national currency would indicate that this country is poor. Not always the case (China is a good exampe), the argument is that nations like Japan and China want their currency to be low in value so that other nations (like the US) will buy more Japanese and Chinese products imported. Think about it, if the US dollar is twice as strong as the Yen, than it can buy twice as many Japanse goods. If a computer costs 1,000 dollars in the US, but 1000 Yen in Japan, than you could buy two Japanese computers. make sense?
The Yens value is tampered with by the Chinese Government. It is fixed a price determined by other currencies to minimize its value thereby allowing for more exports this will increase the demand of yen in the market.and a time when all the trade is being done in yen it will increase its value by stop producing more currency and then we will be able to buy less yens in the same amount of dollars as the price has got high
However, Bank of Japan manipulates the currency market by flooding the market with yen. This keeps the value low thus increasing the attractiveness of its exports high. This is all much to the dismay of the US who would like Japan to buy some American stuff with all of that US currency they are hanging on to. But, buying consumer items from another country is not necessarily beneficial to Japan in the short term, and they can't see the long term.
What they often do is use that money to buy land in Hawaii and other states. Of course this doesn't do anything to affect the trade deficit
Japan is the world wealthiest nation and second largest economy after the USA. exchange of a nation can be either under fixed(set by govt./central bank) or flexible exchange rate(determined by demand and supply conditions in the forex market); as an economist
Monday, January 3, 2011
Redefine The Rules
with reference to the article 'Raising Multipolar Stake' published on 04/01/11 in the Times Of India
Redefine The Rules
It was a paradigm shift in the foreign affairs of India in 2010 by playing itself a host to the world's most powerful nations and staking itself out as a big player in world politics. The move whether strategic or automatic by our government has done wonders for us as it has lent credence to the fact that we deserve a spot in the UN Security Council.This has redefined the basic rules for ones acceptance as a powerful stakeholder in taking decisions concerning the whole globe. However, India will have to be firm in its stand without getting overawed by other superpowers, plan its actions discreetly regarding its relationships with other stakeholders in the next decade and maintain a high economic growth.
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