Tag: Euro

  • Failed Americanism? A Case Study for Eurodisney Failure

    Failed Americanism? A Case Study for Eurodisney Failure

    The article uses some aspects of the Hofstede’s cultural dimensions and Trompenaars’ research on organizational culture to compare the cultural difference between America and France, then find out three mistakes that the company made in managing its Euro Disney operation through the case study. Many of Businesses in America make detailed assumptions about the potential to expand their business to other countries and structural models of organizing which can be easily failed to consider the cultural differences. So, what are you going to discuss? – Failed Americanism? A Case Study for Eurodisney Failure.

    Does the content explain how Failed Americanism? and analyze the Euro Disney failure case study.

    One of the examples of the outcome to intercultural business is Disney Corporation’s European venture. Due to the lack of cultural information of France as well as Europe, further, on their inability to forecast problems, Disney acquired a huge debt. False assumptions led to a great loss of time, money and even reputation for the corporation itself.

    Instead of analyzing and learning from its potential visitors, Disney chose to make assumptions about the preference of Europeans, which turned out that most of those assumptions were wrong. Also, study the Case Study on the Merger Between US Airways and American Airlines. Disney Company is one of the most successful operators of theme parks in the world, and their theme park in America and Japan achieved great success but the situation in Europe is not so good.

    In the following sectors, the three lessons the company should have learned about how to deal with diversity based on its experience will be described. More rapid development in the trend of multinational companies, cross-cultural management has become a major part of the business. The purpose of this paper is to obtain some favorable factors for the future development of Euro Disney by the above analysis.

    Three Mistakes by Euro Disney:

    The following mistakes are below:

    First Mistake:

    In determining the target market did not take into account cultural differences Euro Disney’s choice of location focus on the aspects of financial and population, then the Eurodisney theme park located in populous central Europe. Disney executives did not see that Mickey Mouse and intellectuals in the region of the left bank of the Seine in Paris cannot live in harmony and France is serious about their intelligence.

    In retrospect, Paris is not the best place to establish such a theme park, so the establishment of the Disney parks is a declaration of war to intellectuals of French. Disney’s manager stated publicly some of the criticism is “the nonsense of small number of Business” would not help them a favor. This may be well operated according to American culture, while the French pay more attention to their own cultural elite and regard this refute as an attack of national quality.

    Second Mistake:

    Having not adequately taken into account the habits of the French when arranging the service kinds Disney does not provide breakfast because they think that the Europeans do not eat breakfast. In addition, the Disney company does not provide alcoholic beverages within the park, but the French habits are different, they are used to drinking a cup while taking lunch, which aroused the anger of the French.

    Disney executives did not estimate that the European are not interested in vacation in theme park so much, in the attitude of Disney Company the European will be happy about spending a few days in a theme park like the American and Japanese, but middle-class in Europe just want to “get away from everything around” and go to the coast or the mountains, and Euro Disney is the lack of such appeal.

    Last Mistake:

    No combination of French culture to the local staff management Disney has taken the global standard model as same as the Japanese business, they transplanted the American culture to France directly than doing this result with a serious clash of cultures.

    The Disney Company use many measures that departed with the local culture, for example, in the Euro Disney, the France worker is requested to comply with the strict appearance code as the other theme parks in the United States and Japan do, the workers are asked to break their ancient cultural aversions to smiling and being consistently polite to the park guest even must mirror the multi-country makeup of its guest.

    In addition, the Disney Company brought their U.S. Pop culture to France and fought hard for a greater “local cultural context”. The French people think that this is an attack on their native culture, so they adopted an unfriendly attitude toward to the arrival of the Disney, including the protest come from the intellectual and the local residents and farmers.

    Three Lessons by Eurodisney:

    The following lessons are below:

    First Lessons:

    Multinational companies should target market accurately even in the same country or regional market, the traditional culture makes different control power to different people. Multinational companies should be fully based on detailed market research to find the weak links in the market and make a breakthrough, use the “point to an area” model to expand.

    For example, McDonald’s opened in the Chinese market, its target is no longer work for the busy working-class, but the children. The golden arches mark, the joyful atmosphere of the shop, the furnished toys, full of playful ads, as well as various promotional activities specifically carry out for children, these have a tremendous appeal to the target customers.

    McDonald thinks that adult eating habits difficult to change, only those children whose taste not yet formed are the potential customers of Western fast-food culture, the McDonald received Broad market recognition and have huge market potential.

    Second Lessons:

    Multinational enterprises should pay full attention to the importance of the influence of cultural differences on marketing face to the new multiple culture environment, the multinational enterprise should take an objective to acknowledge about the cultural differences of the consumer demand and behavior and respect it, abandoning the prejudice and discrimination of culture completely.

    Moreover, multinational enterprises should be good at finding out and using the base point of communication and collaboration of different cultures and regard this base point as the important consideration factor when the plan to enter the target country market.

    After all, the fundamental criterion for a successful business enterprise is whether it can integrate into the local social and cultural environment. The multinational enterprises should improve the sensitivity and adaptability to the different cultural environment.

    Last Lessons:

    Multinational enterprises should make full use of the competitive advantages of cultural differences and promote international marketing. The objective of international cultural differences can also be the basic demand points of different competitive strategy.

    In the international market, launching culture marketing activities and highlighting the exotic culture and cultural differences in the target market can open the market quickly. Companies should strive to build cross-cultural “two-way” communication channels, it is necessary to adapt to the host’s cultural environment and values and carry out the business strategy of localization to make it can be widely accepted by the host country local government, local partners, consumers, and other relevant stakeholders.

    Effective cross-cultural communication, on the one hand, contributes to cultural integration but also can create a harmonious internal and external human environment for corporate management.

    Euro Disney Calamity:

    The following Calamity is below:

    Until 1992,

    The Walt Disney Company had experienced nothing but success in the theme park business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, “It’s a Small World After All,” promoted an idealized vision of America spiced with reassuring glimpses of exotic cultures all calculated to promote heartwarming feelings about living together as one happy family.

    There were dark tunnels and bumpy rides to scare the children a little but none of the terrors of the real world . . . The Disney characters that everyone knew from the cartoons and comic books were on hand to shepherd the guests and to direct them to the Mickey Mouse watches and Little Mermaid records. The Anaheim park was an instant success.

    In the 1970s,

    The triumph was repeated in Florida, and in 1983, Disney proved the Japanese also have an affinity for Mickey Mouse with the successful opening of Tokyo Disneyland. Having wooed the Japanese, Disney executives in 1986 turned their attention to France and, more specifically, to Paris, the self-proclaimed capital of European high culture and style. “Why did they pick France?” many asked.

    When word first got out that Disney wanted to build another international theme park, officials from more than 200 locations all over the world descended on Disney with pleas and cash inducements to work the Disney magic in their hometowns. But Paris was chosen because of demographics and subsidies. About 17 million Europeans live less than a two-hour drive from Paris. Another 310 million can fly there at the same time or less.

    Also, the French government was so eager to attract Disney that it offered the company more than $1 billion in various incentives, all in the expectation that the project would create 30,000 French jobs. From the beginning, cultural gaffes by Disney set the tone for the project. By late 1986, Disney was deep in negotiations with the French government.

    Disney team:

    To the exasperation of the Disney team, headed by Joe Shapiro, the talks were taking far longer than expected. Jean-Rene Bernard, the chief French negotiator, said he was astonished when Mr. Shapiro, his patience depleted, ran to the door of the room and, in a very un-Gallic gesture, began kicking it repeatedly, shouting, “Get me something to break!”

    There was also snipping from Parisian intellectuals who attacked the transplantation of Disney’s dream world as an assault on French culture; “a cultural Chernobyl,” one prominent intellectual called it. The minister of culture announced he would boycott the opening, proclaiming it to be an unwelcome symbol of American clichés and a consumer society.

    Unperturbed,

    Disney pushed ahead with the planned summer 1992 opening of the $5 billion parks. Shortly after Euro-Disneyland opened, French farmers drove their tractors to the entrance and blocked it. This globally televised act of protest was aimed not at Disney but at the US government, which had been demanding that French agricultural subsidies be cut. Still, it focused world attention on the loveless marriage of Disney and Paris.

    Then there were the operational errors. Disney’s policy of serving no alcohol in the park, since reversed caused astonishment in a country where a glass of wine for lunch is a given. Disney thought that Monday would be a light day for visitors and Friday a heavy one and allocated staff accordingly, but the reality was the reverse.

    Another unpleasant surprise was the hotel breakfast debacle. “We were told that Europeans ‘don’t take breakfast,’ so we downsized the restaurants,” recalled one Disney executive. “And guess what? Everybody showed up for breakfast. We were trying to serve 2,500 breakfasts in a 350-seat restaurant at some of the hotels. The lines were horrendous.

    Moreover,

    They didn’t want the typical French breakfast of croissants and coffee, which was our assumption. They wanted bacon and eggs.” Lunch turned out to be another problem. “Everybody wanted lunch at 12:30. The crowds were huge. Our smiling cast members had to calm down surly patrons and engage in some ‘behavior modification’ to teach them that they could eat lunch at 11:00 AM or 2:00 PM.”

    There were major staffing problems too. Disney tried to use the same teamwork model with its staff that had worked so well in America and Japan, but it ran into trouble in France. In the first nine weeks of Euro-Disneyland’s operation, roughly 1,000 employees, 10 percent of the total, left.

    One former employee was a 22-year old medical student from a nearby town who signed up for a weekend job. After two days of “brainwashing,” as he called Disney’s training, he left following a dispute with his supervisor over the timing of his lunch hour. Another former employee noted, “I don’t think that they realize what Europeans are like . . . that we ask questions and don’t think all the same way.”

    One of the biggest problems,

    However, was that Europeans didn’t stay at the park as long as Disney expected. While Disney succeeded in getting close to 9 million visitors a year through the park gates, in line with its plans, most stayed only a day or two. Few stayed the four to five days that Disney had hoped for. It seems that most Europeans regard theme parks as places for day excursions.

    A theme park is just not seen as a destination for an extended vacation. This was a big shock for Disney. Also, study the Case Study of the Starbucks Mobile Payment Application. The company had invested billions in building luxury hotels next to the park-hotels that the day-trippers didn’t need and that stood half empty most of the time.

    To make matters worse, the French didn’t show up in the expected numbers. In 1994, only 40 percent of the park’s visitors were French. One puzzled executive noted that many visitors were Americans living in Europe or, stranger still, Japanese on a European vacation! As a result, by the end of 1994 Euro-Disneyland had cumulative losses of $2 billion.

    At this Point,

    Euro-Disney changed its strategy. First, the company changed the name to Disneyland Paris in an attempt to strengthen the park’s identity. Second, food and fashion offerings changed. To quote one manager, “We opened with restaurants providing French-style food service, but we found that customers wanted self-service like in the US parks. Similarly, products in the boutiques were initially toned down for the French market, but since then the range has changed to give it a more definite Disney image.” Third, the prices for day tickets and hotel rooms were cut by one-third. The result was an attendance of 11.7 million in 1996, up from a low of 8.8 million in 1994.

    Failed Americanism A Case Study for Eurodisney Failure
    Failed Americanism? A Case Study for Eurodisney Failure. Image credit from #Pixabay.
  • Meaning, Definition, Types, and Advantages of Eurobonds

    Meaning, Definition, Types, and Advantages of Eurobonds

    A Eurobond is an international bond that denominates in a currency not native to the country where it issues. Also, call external bonds; “External bonds which, strictly, are neither Eurobonds nor foreign bonds would also include: foreign currency-denominated domestic bonds…” This article explains the Euro bonds or Eurobonds with their topics Meaning, Definition, Characteristics, Types, and Advantages. Money may raise internationally by bond issues and by bank loans. This does in domestic as well as international markets.

    The Concept of Eurobonds or Euro bonds explains in Meaning, Definition, Types, Characteristics, and Advantages.

    It can categorize according to the currency in which it issues. London is one of the centers of the Eurobond market, with Luxembourg being the primary listing center for these instruments. The difference is that in international markets the money may come in a currency that is different from that normally used by the borrower. A foreign bond a bond issue in a particular country by a foreign borrower. Eurobonds bonds underwrite and sell in more than one country.

    Meaning and Definition of Eurobonds:

    A foreign bond may define as an international bond sold by a foreign borrower but denominated in the currency of the country in which it is placed. It underwrites and sells by a national underwriting syndicate in the lending country. Thus, a US company might float a bond issue in the London capital market, underwritten by a British syndicate and denominated in sterling.

    The bond issue would sell to investors in the UK capital market, where it would quote and traded. Foreign bonds issued outside the USA call Yankee bonds, while foreign bonds issued in Japan are called Samurai bonds. Canadian entities are the major floaters of foreign bonds in the USA.

    Euro bonds may define as an international bond underwritten by an international syndicate and sold in countries other than the country of the currency in which the issue denominates. In the Eurobond market, the investor holds a claim directly on the borrower rather than on a financial institution.

    Eurobonds are generally issued by corporations and governments needing secure, long-term funds and are sold through a geographically diverse group of banks to investors around the world. Eurobonds are similar to domestic bonds in that they may issue with fixed or floating interest rates.

    An Issue of Eurobonds:

    The issue of Eurobonds is normally undertaken by a consortium of international banks. A record of the transaction called a “Tombstone” is subsequently published in the financial press. Those banks whose names appear at the top of the tombstone have agreed to subscribe to the issue. At a second level, a much larger underwriting syndicate mentioned.

    The banks in the managing syndicate will have made arrangements with a worldwide group of underwriters, mainly banks and security dealers. After arranging the participation of several underwriters, the managing syndicate will have made a firm offer to the borrower, which obtains the funds from the loan immediately. At a third level, the underwriting group usually arranges for the sale of the issue through an even larger selling group of banks, brokers, and dealers.

    Types of Eurobonds:

    There are three types of Eurobonds, of which two are international bonds. A domestic bond is a bond issue in a country by a resident of that country.

    There are several different types of Eurobonds.

    • Straight Bond: Bond is one having a specified interest coupon and a specified maturity date. Straight bonds may issue with a floating rate of interest. Such bonds may have their interest rate fixed at six-month intervals of a stated margin over the LIBOR for deposits in the currency of the bond. So, in the case of a Eurodollar bond, the interest rate may base upon LIBOR for Eurodollar deposits.
    • Convertible Eurobond: The Eurobond is a bond having a specified interest coupon and maturity date. But, it includes an option for the hold to convert its bonds into an equity share of the company at a conversion price set at the time of issue.
    • Medium-term Eurobond: Medium-term Euro notes are shorter-term Eurobonds with maturities ranging from three to eight years. Their issuing procedure is less formal than for large bonds. Interest rates on Euro notes can fix or variable. Medium-term Euro-notes are similar to medium-term roll-over Eurodollar credits. The difference is that in the Eurodollar market lenders hold a claim on a bank and not directly on the borrower.

    Characteristics of Euro bonds or Features of Eurobonds:

    The following characteristics of euro bonds below are;

    • Straight bonds: the fixed interest rate at periodic intervals, usually annually.
    • Floating-rate notes (FRNs): rollover pricing payment usually six months interest stated in terms of a spread over some reference rate.
    • Zero-coupon bonds: discount securities, sold either at a fraction of face value and redeemed at face value, or sold at face value and redeemed at a premium.
    • Convertible bonds: can exchange for some other type of asset: stock, gold, oil, other bonds.
    • Mortgage-backed Eurobonds: backed by a pool of mortgages, or other bonds Institutions which would otherwise exclude from Eurobond market can get access.
    • Dual-currency bonds: purchased in one currency, coupon or principal paid in a second currency.

    The following Eurobonds features are:

    • The issuing technique takes the form of a placing rather than formal issuing, this avoids national regulations on new issues.
    • Eurobonds place simultaneously in many countries through syndicates of underwriting banks. Which sells them to their investment clientele throughout the world.
    • Unlike foreign bonds, Eurobonds sale in countries other than that of the currency of denomination; thus dollar-denominated Eurobonds sale outside the U.S.A.
    • The interest on Eurobonds is not subject to withholding tax.

    Advantages of Eurobonds:

    The Eurobonds market possesses several advantages for borrowers and investors.

    The advantages of Eurobonds to borrowers are:

    • The size and depth of the market are such that it can absorb large and frequent issues.
    • The Eurobond market has freedom and flexibility not found in domestic markets.
    • The cost of the issue of Eurobonds, around 2.5 percent of the face value of the issue.
    • Maturities in the Eurobond market are suited to long-term funding requirements.
    • A key feature of the Eurobond market is the development of a sound institutional framework for underwriting, distribution, and the placing of securities.

    The advantages of Eurobonds to investors are:

    • Euro bonds are issued in such a form that interest can pay free of income or withholding taxes of the borrowing countries. Also, the bonds issued in bearer form and are held outside the country of the investor, enabling the investor to evade domestic income tax.
    • Issuers of Eurobonds have a good reputation for creditworthiness.
    • A special advantage to borrowers as well as lenders provides by convertible Eurobonds. Holders of convertible debentures give an option to exchange their bonds at a fixed price.
    • The Eurobond market is active both as a primary and as a secondary market.

    Bonds denominated in a particular currency that usually issues simultaneously in the capital markets of several nations. They differ from foreign bonds in that most nations do not have pre-offering registration or disclosure requirements for Eurobond issues. An Example of a Eurobond a bond issue by a Russian corporation in the European market that pays interest and principal in U.S. dollars.

    Meaning Definition Types and Advantages of Eurobonds
    Meaning, Definition, Characteristics, Types, and Advantages of Eurobonds. Image Credit from Online.
  • What is the Euro Notes? Meaning and Definition

    What is the Euro Notes? Meaning and Definition

    Euro Notes or Euronotes are like promissory notes issued by companies for obtaining short-term funds. They emerged in the early 1980s with growing securitization in the international financial market. As they are denominated in any currency other than the currency of the country where they are issued. Also, they represent a low-cost funding route. Documentation facilities are the minimum. They can easily tailor to suit the requirements of different kinds of borrowers. Investors too prefer them because of short maturity. They are legal tender in the form of a banknote that can use in exchange for goods and services in the eurozone. The market of Euro notes comes in seven denominations: 5, 10, 20, 50, 100, 200, and 500 euro.

    The Content of Euro Notes or Euronotes is understood by their Meaning and Definition.

    On the advice of the lead arranger, it issues the notes, gets them underwritten, and sells them through the placement agents. After the selling period is over the underwriter buys the unsold issues. They carry three main cost components: Underwriting fee; One-time management fee for structuring, pricing, and documentation; and Margin on the notes themselves. The margin is either in the form of spread above/below LIBOR or built into the note price itself. When the issuer plans to issue Euronotes, it hires the services of facility agents or the lead arranger. 

    Meaning and Definition:

    The documentation is standardized. The documents accompanying notes are usually underwriting agreement, paying agency agreement, and information memorandum showing, among other things, the financial position of the issuer. The notes are settled either through physical delivery or through clearing.

    In the course of time, a few variants of Euronotes issue system have evolved. The first is the revolving underwriting facility in which there is a sole placement agent who allocates the notes among investors at a uniform preset yield. The second is the tender panel system in which the placement agent forms a panel of banks for placing Euronotes on behalf of the issuer. Also, The tender panel members submit tenders to the placement agent indicating the amount and price of notes they would like to acquire.

    In this case, the price is set by open competition and so it goes in favor of the issuer. However, the placement agent may not have the same level of commitment as it is found in the case of the sole placement agent. The third variant is the continuous tender panel in which the underwriters constitute a tender panel for each drawdown of notes. They buy them if left unsold, during the offer period. This system brings in competition among the underwriters.

    Euro notes or Euronotes are also enabled for medium-term.

    Euro Notes is also available for Medium-term. Medium-term Euronotes are just an extension of short-term Euronotes as they fill the gap existing in the maturity structure of international financial market instruments. They are a compromise between short-term Euronotes and long-term. Euro bonds as their maturity ranges between one year and five to seven years. The short-term Euronotes are allowed to roll over repeatedly over five to seven years.

    Every three or six months, the short-term Euronotes are redeemed and a fresh issue is made. Alternatively, a medium-term Euronote is issued to get medium-term Euronote is issued to get medium-term funds in foreign currency without any need for redemption and fresh issues. Medium-term Euronotes are not underwritten, yet there is a provision for underwriting.

    This is to ensure the borrowers that they get the funds even if they lack sufficient creditworthiness. They are issued broadly on the pattern of US medium-term notes that have been found there since the early 1970s. Medium-term Euronotes carry a fixed rate of interest, although floating rates are also there. In recent years, the multi-currency structure has come up. The issuers are mainly banks, sovereigns, and international agencies.

    Frequently Asked Questions (FAQs)

    1. What are Euro Notes?

    Euro Notes, also known as Euronotes, are short-term promissory notes issued by companies to raise funds. They emerged in the early 1980s and are denominated in currencies other than the currency of the country where they are issued.

    2. How do Euro Notes work?

    They are issued based on the advice of a lead arranger who underwrites and sells the notes through placement agents. After the selling period, the underwriter buys any unsold issues.

    3. What are the main costs associated with Euro Notes?

    The costs typically include:

    • Underwriting fee
    • One-time management fee for structuring, pricing, and documentation
    • Margin on the notes, which can be based on LIBOR or included in the note price.

    4. What documentation is required for Euro Notes?

    The documentation is standardized and typically includes:

    • Underwriting agreement
    • Paying agency agreement
    • Information memorandum detailing the issuer’s financial position.

    Yes, Euro Notes are legal tender in the form of banknotes and can be used for transactions within the eurozone.

    6. What variants of Euro Notes exist?

    There are a few variants including:

    • Revolving underwriting facility: A sole placement agent allocates notes at a preset yield.
    • Tender panel system: A panel of banks submits tenders to acquire notes.
    • Continuous tender panel: Underwriters constitute a tender panel for each drawdown and buy unsold notes during the offer period.

    7. Can Euro Notes be issued for medium-term?

    Yes, medium-term Euro Notes serve as a bridge between short-term Euro Notes and long-term Euro Bonds, with maturities ranging from one to seven years.

    8. Who typically issues Euro Notes?

    Issuers are mainly banks, sovereign entities, and international agencies.

    9. What types of interest rates do Euro Notes carry?

    Euro Notes can carry fixed or floating rates of interest, and multi-currency options are also available.

    10. How frequently are short-term Euro Notes redeemed?

    Short-term Euro Notes are typically redeemed every three to six months, with fresh issues being made thereafter.

  • What is the Euro Commercial Papers? Meaning and Definition

    What is the Euro Commercial Papers? Meaning and Definition

    Euro Commercial Paper (ECP) is an unsecured, short-term debt instrument that is denominated in a currency differing from the domestic currency of the market where it is issued. The ECP works to be an attractive short-term financing tool for firms that wish to reduce forex market risk. ECP came upon the pattern of domestic market commercial papers that had a beginning in the USA and then in Canada as back as in the 1950s. So, the question is: What is the Euro Commercial Papers? Meaning and Definition.

    Euro Commercial Paper is explains point of Meaning and Definition.

    Another attractive form of short-term debt instrument that emerged during mid – 1980s came to be known as Euro commercial paper (ECP). It is a promissory note like the short term Euro notes although it is different from Euro notes in some ways. It is not underwritten, while the Euro notes are underwritten. The reason is that ECP is issued only by those companies that possess a high degree of rating. Again, the ECP route for raising funds is normally investor driven, while the Euro notes are said to be borrower driven.

    Meaning:

    The prefix “Euro” means that the ECP is issued outside the country in the currency in which it is denominated. Most of the ECPs are denominated in US dollars, but they are different from the US commercial papers on the sense that the ECPs have longer maturity going up to one year. Moreover, ECPs are structured on the basis of all in costs, whereas in US commercial papers, various charges, such as front-end fee and commission are collected separately.

    The detailed features of ECPs vary from one country to another. They involve the market-based interest rate, LIBOR. The issue is normally arranged through placement agents as in the case of Euro notes. The amount varies from the US $ 10 million to the US $ 1 billion or above. The ECPs are issued either in interest-bearing form or in a discounted form with interest built in the issue price itself.

    On completion of the maturity, they are settled generally at the clearinghouses, such as Cedel (Luxembourg), Euroclear (Brussels), First Chicago (London) or Chases Manhattan (London) so that the physical delivery is avoided. The settlement is complete normally within two days. ECPs face minimal documentation. Over and above, they are not underwritten. This is why their use has been large since their very inception.

    Definition:

    It differs from a commercial paper in the sense that an ECP is denominated in a foreign currency and is dealt in international markets, whereas a commercial paper is dealt with in the home boundaries in the domestic currency. Euro Commercial Paper is generally in the form of a promissory note and is issued on a discount or on an interest-bearing basis. The time period of maturity of the Euro Commercial paper ranges from a few days to one year, the most common maturity time period being 182 days.

    What is the Euro Commercial Papers Meaning and Definition
    What is the Euro Commercial Papers? Meaning and Definition, Image credit from #Pixabay.

  • What is the Euro Market? Meaning and Definition

    What is the Euro Market? Meaning and Definition

    What is Euromarket? The euro market acts as a major source of international trade. Euro the currency uses by the European Union (EU) countries, so, the market the Euro uses for can name Euromarket. This article explains the Euro Market or Euromarket with their topics Meaning and Definition. It has in view all the transactions done by The banks in Euro currencies, Euro notes, Euro commercial papers, Euro bonds. It is a market that develops in Europe. Also, the market deals with US dollars as well and it can name the Eurodollar market. Also, the question may you are like to learn; What is Credit Card Services?

    The interpretation of the Euromarket or Euro Market meaning and definition.

    The Euro market is a large market comprising many member nations of the EU and facilitates. The free movement of goods and services, in other words, efficient trade mechanisms such as low tariffs, quotas, etc. are put in place and have a centralizing monetary policy with most of them using a common currency – Euro.

    The Euro currency market or eurodollar consists of Euro Banks that accept deposits and offers credit in foreign currencies. Also, Euro currency refers to a currency that is freely convertible and is deposited in a bank present in a country where the currency is non-domestic. The bank can be either a foreign bank or a foreign branch of a US domestic bank.

    Meaning and Definition of Euro Market or Euromarket:

    Currency is borrowing and lending by institutions locating in different countries, there is a capital flow that seems to uncontrol. Theoretically, it cannot be a national control over this market. From the practical point of view, the market forces dictate the lending rates; the rates do not diverge from the domestic lending ones, it happens only for a short interval of time.

    The international banks are the main operators; financial institutions are also allowing to enter the market. Also, the Eurodollar market is complement by Euro bonds and makes longer-term funds available. The bonds are payable to bearer without deduction of tax. They are issuing by bank consortia and are placing with investors.

    London and Luxemburg have developed a secondary market in bonds which has become a supranational market; it is not subject to normal domestic regulations but it is affecting by international events. Important sums of dollars have deposits in banks which are outside the USA and many USA banks have branches overseas. Euro-notes are notes issuing in bearer form and negotiable.

    A note issuance facility is a credit facility, the company obtains a loan underwritten by banks which issue a series of short-term Euro currency notes used for replacing the already expired ones. Euro notes are short-term notes issuing in US dollars. Commercial papers relate to short-term promissory notes issued by companies; they are purchasing by investors.

    They are issuing at a discount to the face value they have. The corporations can borrow more cheaply than via bank loans; the investors may earn a higher return on their funds than it is available on bank deposits. A bank usually undertakes the issuing of these papers either directly or through dealers.

    What is the Euro Market Meaning and Definition
    What is the Euro Market? Meaning and Definition, Image credit from #Pixabay.

  • Most Highest Currency or Currencies Value in 2016

    Most Highest Currency or Currencies Value in 2016

    Highest currency 2016; What is Currency? A currency (from Middle English: currant, “in circulation”, from Latin: Currens, -Entis) in the most specific use of the word refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money (monetary units) in common use, especially in a nation. Under this definition, US dollars, British pounds, Australian dollars, and European euros are examples of currency. These various currencies recognize stores of value and trade between nations in foreign exchange markets; which determine the relative values of the different currencies. Also, Currencies in this sense defines by governments, and each type has limited boundaries of acceptance.

    Here is the article to explain, Most Highest Currency or Currencies Value in 2016!

    Other definitions of the term “currency” discuss in their respective synonymous articles banknote, coin, and money. Also, The latter definition, about the currency systems of nations, is the topic of this article. Currencies can be classified into two monetary systems: fiat money and commodity money, depending on what guarantees the value (the economy at large vs. the government’s physical metal reserves). Some currencies are legal tender in certain political jurisdictions; which means they cannot refuse as payment for the debt. Others simply traded for their economic value. Also, Digital currency has arisen with the popularity of computers and the Internet.

    Most Highest Currencies Value in 2016:

    RankCountry NameCurrency Name
    1KuwaitKuwaiti Dinar (KWD)
    2BahrainBahraini Dinar (BHD)
    3OmanOmani Rial (OMR)
    4United KingdomBritish Pound (GBP)
    5European UnionEuro (EUR)
    6SwitzerlandSwiss Franc (CHF)
    7LibyaLibyan Dinar (LYD)
    8BruneiBruneian Dollar (BND)
    9SingaporeSingapore Dollar (SGD)
    10AustraliaAustralian Dollar (AUD)

    Kuwaiti Dinar (KWD):

    The Kuwaiti dinar (Arabic: دينار‎‎, code: KWD) is the currency of Kuwait. It sub-divides into 1,000 files. Also, The Kuwaiti dinar is the world’s highest-valued currency unit.

    20th Dec. 2016 Value of Currency as dollar One Kuwaiti dinar buys US$3.26.

    Bahraini Dinar (BHD):

    The dinar (Arabic: دينار‎‎ Dīnār Baḥrēnī) (sign: .د.ب or BD; code: BHD) is the currency of Bahrain. It divides into 1000 fils (فلس). The name dinar derives from the Roman denarius. The dinar was introduced in 1965, replacing the Gulf rupee at a rate of 10 rupees = 1 dinar. Also, The Bahraini dinar abbreviates .د.ب (Arabic) or BD (Latin). It usually represents three decimal places denoting the files.

    20th Dec. 2016 Value of Currency as dollar One Bahraini dinar buys US$2.65.

    Omani Rial (OMR):

    The rial (Arabic: ريال‎‎, ISO 4217 code OMR) is the currency of Oman. It divided into 1000 baisa (also written baiza, بيسة).

    20th Dec. 2016 Value of Currency as dollar One Omani rial buys US$2.60.

    British Pound (GBP):

    A pound is a unit of currency in some nations. The term originated in Great Britain as the value of a pound (weight) of silver. The English word pound is cognate with, among others, German Pfund, Dutch pond, and Swedish pound. All ultimately derive from a borrowing into Proto-Germanic of the Latin expression lībra pondō (“a pound of weight”), in which the word pondō is the ablative case of the Latin noun pondus (“weight”). The English word “pound” first referred to a unit of mass or weight; the monetary pound originated as a pound (by weight) of silver.

    The currency’s symbol is £, a stylized representation of the letter L, standing for livre or lira. Historically, £1 worth of silver coins was a troy pound in weight; in August 2016 this amount of silver was worth approximately £170 sterling. Today, the term may refer to several (primarily British and related) currencies and a variety of obsolete currencies. Some of them, those officials in former Italian states and countries formerly belonging to the Ottoman Empire, called pound in English, while in the local languages their official name is lira.

    20th Dec. 2016 Value of Currency as dollar One British pound buys US$1.23.

    Euro (EUR):

    The euro (sign: €; code: EUR) is the official currency of the eurozone, which consists of 19 of the 28 member states of the European Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The currency is also officially used by the institutions of the European Union and four other European countries; as well as unilaterally by two others and is consequently used daily by some 337 million Europeans as of 2015. Outside of Europe, several overseas territories of EU members also use the euro as their currency.

    20th Dec. 2016 Value of Currency as dollar One euro buys US$1.04.

    Swiss Franc (CHF):

    The franc (sign: Fr. or SFr. or FS; German: Franken, French, and Romansh: franc, Italian: franco; code: CHF) is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave Campione d’Italia. Also, The Swiss National Bank (SNB) issues banknotes, and the federal mint Swissmint issues coins.

    The smaller denomination, a hundredth of a franc, is a Rappen (Rp.) in German, centime (c.) in French, centesimo (ct.) in Italian, and rap (RP.) in Romansh. The ISO code of the currency used by banks and financial institutions is CHF, although “Fr.” uses by most businesses and advertisers; some use SFr.; the Latinate “CH” stands for Confoederatio Helvetica. Given the different languages used in Switzerland, Latin uses for language-neutral inscriptions on the coins.

    20th Dec. 2016 Value of Currency as dollar One Swiss Franc buys US$0.97.

    Australian Dollar (AUD):

    The Australian dollar (sign: $; code: AUD) is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru, and Tuvalu. Within Australia, it is almost always abbreviated with the dollar sign ($), with A$ or AU$ sometimes used to distinguish it from other dollar-denominated currencies. Also, It is subdivided into 100 cents.

    20th Dec. 2016 Value of Currency as dollar One Australian Dollar buys US$0.72.

    Libyan Dinar (LYD):

    The dinar (Arabic: دينار‎‎) is the currency of Libya. Its ISO 4217 code is “LYD”. The dinar is subdivided into 1000 dirham (درهم). It was introduced in September 1971 and replaced the pound at par. It is issued by the Central Bank of Libya, which also supervises the banking system and regulates credit. In 1972, the Libyan Arab Foreign Bank was established to deal with overseas investment. Ali Mohammed Salem, deputy governor of Central Bank of Libya stated the exchange rate of Libyan dinar would be pegged to special drawing rights for one to three years, according to an interview with Reuters on 27 December 2011.

    20th Dec. 2016 Value of Currency as dollar One Libyan Dinar buys US$0.70.

    Singapore Dollar (SGD):

    The Singapore dollar (Malay: Ringgit Singapura, sign: $; code: SGD) is the official currency of Singapore. Also, It is normally abbreviated with the dollar sign $, or S$ to distinguish it from other dollar-denominated currencies. It is divided into 100 cents.

    The Monetary Authority of Singapore and the Monetary Authority of Brunei Darussalam (Autoriti Monetari Brunei Darussalam) still maintain the historic exchangeability of their two currencies, the Singapore dollar, and the Brunei dollar, respectively. The Singapore dollar is accepted as “customary tender” in Brunei according to the Currency Interchangeability Agreement. Likewise, the Brunei dollar is customarily accepted in Singapore.

    20th Dec. 2016 Value of Currency as dollar One Singapore Dollar buys US$0.69.

    Bruneian Dollar (BND):

    The Brunei dollar (Malay: ringgit Brunei, currency code: BND), has been the currency of the Sultanate of Brunei since 1967. It is normally abbreviated with the dollar sign $, or B$ to distinguish it from other dollar-dominated currencies, It is divided into 100 sen (Malay) or cents (English).

    The Brunei dollar is managed together with the Singapore dollar at a 1:1 ratio by the Monetary Authority of Singapore (MAS). Also, Singapore is one of Brunei’s major trading partners.

    20th Dec. 2016 Value of Currency as dollar One Bruneian Dollar buys US$0.50.

    Most Highest Currency or Currencies Value in 2016 Image
    Most Highest Currency or Currencies Value in 2016; Image by Erdenebayar Bayansan from Pixabay.

    Note: All Currency is Exchanging rate valuation into US Dollar rate on 20 December 2016.