Confederation of Indian Industry (CII)

 1. Different Trade Patterns:

International business has to deal with the business patterns among the various countries of the world. It has to take into account these business policies of various countries which govern their imports and exports. These policies and practices impose certain constraints and restrictions on international business.

 2. Regulatory Measures:

Every country wants to export its surplus natural resources, agricultural produce and manufactured goods to the extent, it can and import only these goods and products which are not produced or manufactured within the country. For this purpose regulatory measures like tariff barriers (custom duties) non-tariff barriers, quota restrictions, foreign exchange restrictions, technological and administrative regulations, consulter for­malities, state trading and preferential arrangements, trade agreements and joint commis­sions etc. Come in the way of free trade and unfettered flow of foreign business.

3. Lop Sided Development of Developing Countries:

Developed counters are equipped with sophisticated, technologies capable of transforming raw materials into finished goods on a large scale. While developing countries on the other-hand lack technological knowledge and latest equipment. It leads to the lop sided development in the international business.

4. Economic Unions:

There is an increasing tendency among nations to form small groups of Economic Unions which help them to negotiate terms for the business with other countries.

5. National Policy of Development:

The country desirous of achieving self-sufficiency, follows a strategy of importing capital goods equipped with latest and sophisticated technology and restricting imports of less important consumer goods with a view to lowering down its import bill.

 6. Procedural Difficulties:

Different countries have evolved different procedures, practices and documents in order to regulate the export trade. Some of these such as foreign exchange control regulations and others have been formulated after keeping in view the national objectives and have posed certain procedural problems to exporters and importers.

 7. Other Problems: Apart from the problems written above there are many other internal difficulties which restrict our export business and consequently affect the foreign exchange earnings. They are:

(i) Business and industry have not recognised the importance of international business,

(ii) Inflation, high prices and black marketing are starting us in the face. If the situation persists it may put our price level beyond the means of our customers abroad, no matter how badly they need our export,

(iii) Our internal economy is being managed very badly in recent years. If it continues we cannot supply our own essential need. What to say about supply to other nations,

(iv) Poor business ethics is also responsible for our international business.

The co-operative organization is a voluntary association of person having limited resources and common needs. The co-operative organization is formed to help their member to improve the economy standard. They provide different kinds of services product for their member. The co-operative organization is formed with the feeling of each for all and all for each. The main motive of the co-operative organization is to provide service to their member rather than to earn a profit.

The co-operative organization is formed to solve the problems which are arises from modern industrialization. The industrialization has created a gap between poor and rich. The poor people are helpless because they don't have economic resources but the development of co-operative organization provide people opportunities to collect a small amount from poor and this amount is used to address financial needs of their members. A co-operative organization is formed on the principal of self-help through mutual help.

In conclusion, A Co-operative organization is a voluntary association of persons having limited economic resources and common seal need or characteristics company.Co- operative are formed by taking the similarities are formed by taking the similarities in the locality, needs etc. These organizations are formed to help and promote living standard of their member. There are different kinds of a co-operative creditor, co-operative producer, agriculture, marketing society etc.

Types of co-operative

In our society different co-operative are established to provide various facilities for their members. On the basis of activities involved, co-operatives are classified into different types and they are explained below:

• Producer's co-operative Society
• Industrial co-operative Society
• Consumer's co-operative Society
• Saving and credit co-operative society
• Marketing co-operative society
• Farming co-operative society
• Housing co-operative society
• Miscellaneous co-operative society

Producer's Co-operative Society:

It is an association of small members of producer’s .It has limited resources and they cannot expand their business individually. Producers co-operative help its member in the supply of raw materials, purchase of modern machine, provide skilled human resources. This co-operative also help in producing high-quality goods and services.

Industrial Co-operative Society:

They are the association of producers who are engaged in manufacturing. This co-operative helps the member to develop competitiveness in terms of product as small industries face difficulty to compete in a market because of industrialization. They are formed to help small manufacturer in purchasing raw materials, processing them to the finished product as well as marketing the product. This co-operative contact with a different government agencies for their promotion.

Consumer's Co-operative Society:

They are the association of final consumers. Consumers are the person who finally consumes the product. They are formed to get the product at minimum possible price. They directly purchase a product from the manufacture and provide to their members. The main objective of these co-operatives is to eliminate the role of the middleman (Wholesaler, and retailer) this co-operative organization consult about consumer health and price of a product. They provide quality product at reasonable price.

Co-operative Credit Society:

Generally, we understand co-operative as co-operative credit society. This co-operative collect small amount of saving (daily or monthly basis) from their members. This collection is further utilized to provide loan to their members at the time of difficulty. It helps to eliminate the problems of the high-interest rate charged by money lenders. They encourage saving habit of members. These co-operative also help the member to get loan facilities at the appropriate rate of interest.

Co-operative Marketing Society:

It is an association of small producer and manufacturer to sell their output at a fair price. They come together to promote their output in the market. The market co-operative performs a various activity related to market like marketing research, sampling, grading, processing, warehousing etc for the benefit of their members. The main objective of marketing co-operative includes

• Providing the fair price to members product
• Promoting members output in the market

Farming Co-operative Society:

They are the voluntary association of farmers to help each other in their problems. They unite together and form co-operatives. These organizations are established to eliminate difficulties in agriculture farming. Their objectives are to promote the living standard of a farmer by increasing agriculture productivity and by providing the real (actual) price for agriculture output of farmers. They help their members in getting improved seeds, regular fertilizers, technological assistance, modern tools and equipment etc. The co-operative farming society can be of many types on the basis of their objectives such as better farming society, tenant farming society, joint farming society etc.

Housing Co-operative Society:

This co-operative society is established with the objectives to provide housing facilities to their members. These co-operative collect small amount from the members and the collected amount is utilized either for the construction of house or purchase of land. They used to purchase big land area from the municipality or other bodies at a cheaper price and construct houses at very low cost. As a result, of these people having limited income and resources can afford housing facilities.

Miscellaneous co-operative Society:

Besides, above co-operative society, other cooperatives can be established to meet the need of the general public. These co-operatives may be wholesalers’ cooperatives, retailer’s co-operatives, poultry co-operatives, cold storage, fisheries, sugarcane producer’s co-operatives, marketing co-operatives society etc.

Advantages of Shares for Investors

These characteristic entitlements are granted to owners of ordinary shares.

• The first is <a href="https://www.investopedia.com/terms/v/votingright.asp">voting rights</a>. Common shareholders can participate in internal corporate governance through voting. Ordinary shares provides a small degree of ownership in the issuing company. Stockholders have a certain amount of say in how the company is run and are allowed to vote on important decisions, such as the appointment of a board of directors. For each share of <a href="https://www.investopedia.com/terms/c/commonstock.asp">common stock</a> owned, the stockholder gets one vote, so the stockholder's opinion becomes weightier when he or she owns more shares.
• While this may be an important advantage for an individual or <a href="https://www.investopedia.com/terms/i/institutionalinvestor.asp">institutional investor</a> who controls a large percentage of a company's stock, for the average retail investor, the main benefits of common shares are found in their potential for capital gains and dividends, which represent the two ways common shareholders profit from their ownership.
• For individuals, investing in the <a href="https://www.investopedia.com/terms/s/stockmarket.asp">stock market</a> is a relatively straightforward way to generate income. While there are no guaranteed profits, almost anyone can open an online <a href="https://www.investopedia.com/terms/t/tradingaccount.asp">trading account</a> to buy and sell shares of publicly traded stock. In addition to its transactional simplicity, investment in ordinary shares has the potential for unlimited gains, while the potential loss is limited to the original amount invested. Selling shares at a higher price than the original <a href="https://www.investopedia.com/terms/p/purchaseprice.asp">purchase price</a> results in the investor realizing a <a href="https://www.investopedia.com/terms/c/capitalgain.asp">capital gain</a>. However, the opposite can also happen; shareholders may realize a <a href="https://www.investopedia.com/terms/c/capitalloss.asp">capital loss</a> if they sell shares for less than they paid for them.
• When a company turns a profit, it often rewards its investors by paying a small portion of that profit to each <a href="https://www.investopedia.com/terms/s/shareholder.asp">shareholder</a> according to the number of shares owned. While this dividend is not guaranteed, as with <a href="https://www.investopedia.com/ask/answers/040915/what-are-advantages-and-disadvantages-preference-shares.asp">preferred stock</a>, many companies pride themselves on consistently paying higher dividends each year, encouraging long-term investment. Shareholders may elect to reinvest dividends or receive them as income.
• Other stockholders' rights include <a href="https://www.investopedia.com/terms/l/limitedliability.asp">limited liability</a>, i.e., common shareholders are protected against the financial obligations of the corporation and are only liable for their shares' value. They also gain <a href="https://www.investopedia.com/terms/p/preemptiveright.asp">preemptive rights</a>. Shareholders with preemptive rights gain access to new share issues before the rest of the investing public, often <a href="https://www.investopedia.com/terms/a/at-a-discount.asp">at a discount</a>.

Advantages of Shares for Companies

For businesses, issuing common shares is an important way to raise capital to fund expansion without incurring too much debt. While this dilutes the ownership of the company, unlike debt funding, shareholder investment need not be repaid at a later date.

Of course, shareholders do expect returns on their investments, either through stock growth or dividend payments. But the company always has the option to <a href="https://www.investopedia.com/ask/answers/042015/why-would-company-buyback-its-own-shares.asp">repurchase</a> some or all of its <a href="https://www.investopedia.com/terms/o/outstandingshares.asp">outstanding shares</a> if and when it no longer has need of <a href="https://www.investopedia.com/ask/answers/032715/what-are-some-examples-different-types-capital.asp">equity capital</a>, thereby consolidating ownership and increasing the value of shares still available by reducing the supply.

A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services, such as wealth management, currency exchange and safe deposit boxes. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.

• Commercial banks are typically concerned with managing withdrawals and receiving deposits as well as supplying short-term loans to individuals and small businesses. Consumers primarily use these banks for basic checking and savings accounts, certificates of deposit (CDs) and home mortgages. Examples of commercial banks include JPMorgan Chase & Company and Bank of America Corporation.
• Investment banks focus on providing corporate clients with services such as underwriting and assisting with merger and acquisition (M&A) activity. Morgan Stanley and Goldman Sachs Group Inc. are examples of U.S. investment banks.
• Central banks are chiefly responsible for currency stability, controlling inflation and monetary policy and overseeing money supply. Several of the world's major central banks include the U.S. Federal Reserve Bank, the European Central Bank, the Bank of England, the Bank of Japan, the Swiss National Bank and the People’s Bank of China.
• While many banks have both a brick-and-mortar and online presence, some banks have only an online presence. Online-only banks often offer consumers higher interest rates and lower fees. Convenience, interest rates and fees are the driving factors in consumers' decisions of which bank to do business with. As an alternative to banks, consumers can opt to use a credit union. ​