You are on page 1of 4

o FDI (Foreign Direct Investment) - Foreign direct investment (FDI) refers to

long term participation by country A into country B. It usually involves

participation in management, joint-venture, transfer of technology and

expertise. There are two types of FDI: inward foreign direct investment and

outward foreign direct investment, resulting in a net FDI inflow (positive or

negative) and "stock of foreign direct investment", which is the cumulative

number for a given period. Direct investment excludes investment through

purchase of shares

o GDP (Gross Domestic Product) -

o NSE

o BSE

o World Bank – Robert B. Zoellick; World Bank is a term used to describe an

international financial institution that provides leveraged loans[2] to developing

countries for capital programs. The World Bank has a stated goal of reducing

poverty. By law, all of its decisions must be guided by a commitment to

promote foreign investment, international trade and facilitate capital investment.

[3] The World Bank differs from the World Bank Group, in that the World

Bank comprises only two institutions: the International Bank for Reconstruction

and Development (IBRD) and the International Development Association

(IDA), whereas the latter incorporates these two in addition to three more:[4]
International Finance Corporation (IFC), Multilateral Investment Guarantee

Agency (MIGA), and International Centre for Settlement of Investment

Disputes (ICSID).

o IMF (International Monetary Fund) - The International Monetary Fund (IMF) is

the intergovernmental organization that oversees the global financial system by

following the macroeconomic policies of its member countries, in particular

those with an impact on exchange rate and the balance of payments. It is an

organization formed with a stated objective of stabilizing international exchange

rates and facilitating development through the enforcement of liberalising

economic policies[1][2] on other countries as a condition for loans,

restructuring or aid.[3] It also offers highly leveraged loans, mainly to poorer

countries. Its headquarters are in Washington, D.C., United States. The IMF's

relatively high influence in world affairs and development has drawn heavy

criticism from some sources.

o SDR (Special Drawing Rights) - Special Drawing Rights (SDRs) are

international foreign exchange reserve assets.[1] Allocated to nations by the

International Monetary Fund (IMF), a SDR represents a claim to foreign

currencies for which it may be exchanged in times of need.[1] Today, the US

Dollar is the world's primary foreign exchange reserve asset,[2][3][4] and SDRs

may be little used.[5] Some nations, notably China and Russia (as well as the
UN[2]), favor increasing the substance and function of the SDR.[6][7] Although

denominated in US dollars, the nominal value of an SDR is derived from a

basket of currencies; specifically, a fixed amount of Japanese Yen, US Dollars,

British Pounds and Euros.[1] SDRs are the International Monetary Fund's unit

of account[1] and are denoted with the ISO 4217 currency code XDR.

o ADR (American Depositary Receipt) - An American Depositary Receipt

(abbreviated ADR) represents ownership in the shares of a non-U.S. company

that trades in U.S. financial markets. The stock of many non-US companies

trade on US stock exchanges through the use of ADRs. ADRs enable U.S.

investors to buy shares in foreign companies without the hazards or

inconveniences of cross-border & cross-currency transactions. ADRs carry

prices in US dollars, pay dividends in US dollars, and can be traded like the

shares of US-based companies. Each ADR is issued by a U.S. depository bank

and can represent a fraction of a share, a single share, or multiple shares of the

foreign stock. An owner of an ADR has the right to obtain the foreign stock it

represents, but US investors usually find it more convenient simply to own the

ADR. The price of an ADR often tracks the price of the foreign stock in its

home market, adjusted for the ratio of ADRs to foreign company shares. In the

case of companies incorporated in the United Kingdom, creation of ADRs

attracts a 1.5% stamp duty reserve tax (SDRT) charge by the UK government.

Depositary banks have various responsibilities to an ADR shareholder and to


the non-US company the ADR represents. The first ADR was introduced by

JPMorgan in 1927, for the British retailer Selfridges&Co. There are currently

four major commercial banks that provide depositary bank services - JPMorgan,

Citibank, Deutsche Bank and the Bank of New York Mellon. Individual shares

of a foreign corporation represented by an ADR are called American

Depositary Shares (ADS).

o WTO (World Trade Organization) –

o Market Capitalization –

o IMF (International Monetary Fund) –

You might also like