International Capital Market
International Sources of Business
Finance There are various avenues fororganisations to raise funds internationally.
The establishment of Indian economy
after 1990s, has facilitated many Indian companies to expand their operations
beyond the frontiers of India. Many Indian companies are now able to access
funds in the international financial market. The various international sources
from where funds may be generated are
Most of the commercial banks extend foreign
currency loans for promoting business opportunities. The loans and services of
various types, provided by banks differ from country to country.
International agencies and Development
banks play an important role to promote international trade and business. They
provide term loans and grants to promote the development of economically backward
areas in the world. International Finance Corporation (IFC), EXIM Bank
and Asian Development Bank are the agencies operating at International
level to meet the needs of the international finance.
Modern organisations including
multinational companies depend upon sizeable borrowings in rupees as well as in
foreign currencies. Prominent financial instruments used for this purpose are
A depository receipt is a negotiable financial
instrument issued by a bank to represent a foreign company’s equity shares or
securities. They are issued to attract a greater amount of investment from
other countries. Any foreign investor can invest in a foreign stock directly
without worrying about differences in currency, accounting practices, or
language barriers, etc.