Scope Forex
Forex management has a wide scope of operations. Some of the examples where the forex transactions and operations are for example When an Indian Forex industrialist imports raw material from Malaysia for his plant under a letter of credit arrangement provided by his bank, Another example could be when a sports goods manufacturer of India exports his consignment to Europe and gets paid for it in foreign currency received through the banking channels. Another example could be when the Indian subsidiary of a multi national company imports Forex Broker white goods in completely knocked down form from the Chinese affiliate, after reassembling the goods the goods are exported back to Europe. Another example Forex could be when the World Bank disburses aid to an Indian state under an infrastructure development project. All the above examples show how the individuals, how the companies and how the states transact in Forex. When the goods or services are imported into a country these are paid for in the currency of the country exporting these goods or services, it should be noted that when an Indian traveler goes to a foreign country on a short visit, he needs foreign currency and Forex of that country for meeting his expenses