What Is A Quota Share Reinsurance Agreement With Examples

There are many types of reinsurance agreements. Quota Share is one of them, is described with examples. Quota Share Reinsurance Agreement requires the direct insurer to cede a predetermined proportion of all its business accepted in a certain class to the reinsurer(s), and the reinsurers, also agrees to accept that proportion in return for a corresponding proportion of the premium. Example 1. Quota Share Reinsurance Agreement : Direct Insurer : 10% All Reinsurers : 90% Risks assumed : USD 10,00,000 Therefore, risk distribution under this reinsurance arrangement will be as …

Read More »

Factors Influencing Terms Of Trade In Developing Countries

In the field of international trade, ‘terms of trade’ refer to the rate at which country’s exports exchange for its imports. Generally, the prices of the commodities to be exported and imported influence the exports and imports of the two countries. They indicate the relationship between the prices of exports and imports of a country. There are some factors Influencing Terms Of Trade which are discussed as follows: Factors Influencing Terms Of Trade In Developing Countries: 1. Elasticity of Demand and Supply in two Countries. Generally, the terms of trade …

Read More »

What Is Terms Of Trade In Economics

In general terms, the terms of trade refer to the quantity of goods sold and purchased at a given price. In the field of international trade, ‘terms of trade’ refer to the rate at which country’s exports exchange for its imports. Naturally, the prices of the commodities to be exported and imported influence the exports and imports of the two countries. They indicate the relationship between the prices of exports and imports of a country. The terms of trade can be calculated with the help of the following formula — …

Read More »

Criticism Of Modern Theory Of International Trade

The modern theory (or factor endowment theory or factor comparison theory) though makes a considerable improvement over the classical theory of comparative costs. It is not completely free from defects. The theory has been criticized on the following grounds 1. Unrealistic Assumptions. The theory is based on certain unrealistic assumptions such as perfect competition, full employment of productive resources, absence of transport costs, similarity of production functions in two countries etc. These assumptions do not hold good for all countries for all times. A theory based on such unrealistic and …

Read More »

Modern Theory of International Trade by Bertil Ohlin

Bertil Ohlin’s Theory of International Trade, now dubbed as the Modern Theory of International Trade, has been greatly supported by the modern economists. According to them, Ohlin’s theory presents a more realistic, more national and a more direct explanation of the phenomenon of international trade. Ohlin’s theory is essentially an expansion of the new generally acceptably theory of value known as the general equilibrium or mutual interdependence. The theory explains how the values of commodities are related to each other in the local market. Ohlin has extended this general equilibrium …

Read More »

Procedure for Selection of Effective Trade Channels

Every business should select its trade channels wisely. But the selection of the Trade channels is not so easy task as we said. Business should carefully analyze many factors before selecting the  trade channel. Generally the following steps are involved in the selection of trade channel. (1) Analysis Of The Product : The first step is the analysis of the product for the determination of its uses or characteristics. The characteristics of the product aid in deciding on the channels necessary for its marketing and as such, at first, the …

Read More »

Difference Between A Company And A Partnership

 A company is regulated in accordance with the Companies Act, 1956 and its subsequent amendments, while a partnership is regulated by the  Partnership Act, 1932. The points of difference between a Company and a Partnership can be summed up as follows. Difference Between A Company And A Partnership : 1. Registration : A company comes into existence only after registration under the Companies Act. In the case of a partnership, registration is not compulsory. 2. Minimum number of members: The minimum number of persons required to form a company is …

Read More »

Essential Features Or Characteristics Of A Company

Before reading this article on the features or characteristics of a company, I want to ask myself- Is a Company a Property of the Shareholders ? The traditional view that the company is the property of the shareholders is now an exploded myth. A company according to the new socioeconomic thinking, is a social institution having chines and responsibilities towards the community in which it functions. Maximization of social welfare should be the legitimate goal of a company and shareholders should be regarded not as proprietors of the company, but …

Read More »

Anti-Corruption Role Of Compliance Officers In Banking Practice

Role Of Compliance Officers In Banking Practice As Fighters Against Corruption In the international and global economy, the procurement of capital investments, the appropriate use of funds, investment in large-scale projects, the issuance of government and corporate bonds and the financing of SME and national projects is unthinkable without credit institutions like banks or other financial institutions. The importance of banks and financial institutions in Germany and Europe also increased as a result of the introduction of the euro on 1 January 1999. The comparability of services across Europe leads …

Read More »

ONR 49000 : Austrian Standards On Risk Management

In the Control and Transparency Act (KonTraG), which came in effect on 1 May 1998 in Germany , the concept of risk management emerges for the first time as defined by law. However, the concept of risk management can also be found in other systems and has its older origin there. One can generally say that risk management is seen as a process for organizations and systems. One finds approaches in the QM (Quality Management) according to ISO 9001, UM according to ISO 14001 (Environmental Management), OSH according to OHSAS …

Read More »

Powered by WordPress