Many people know use a phone card can save big money.But you must know something about phone cards,so you can buy a right card,which can save you more. Here are some Proper nouns about International phone cards.

Connection Fee:

It applies everytime when a phone call connects. The charge may vary depending on the number you are dialing.

Service Charge & Taxes:

This charge is deducted from your balance for each phone call made. It usually varies from 0 to 25%. (For example: if the rate is 5 ¢/min and the tax is 10%, then a 20 minute phone call will cost $1.10).

Maintenance Fee:

Maintenance fees are deducted from your calling card’s balance as long as a balance remains on the card. They are deducted within about 24 hours of the first phone call. Depending on the card, the maintenance fee can be charged every month, every two weeks, or every week. he basic unit for calculating phone call duration. Prepaid phone cards can be rounded to 1 second, 30 seconds, 1 minute, 2 minutes, or 3 minutes.

Pay-Phone Surcharge:

Most cards deduct a 99¢ surcharge from the card balance if a public pay-phone is used.

Not all phone cards have all fees above,some have one or two,some have more,when choosing a phone card it is very important to pay attention to the card’s details. But Some Small phone cards company said their cards no connection fee no tax no maintenance fee…,their phone cards maybe has bad voice call quality,rember that always buy a phone cards form big companies.

By: Jason Keller

About the Author:

Credit

Communication over the Internet protocol is the most recent application of advanced telecom industry. PC to phone solution offers long distance or international phone calls at minimal cost. VoIP PC to phone can be easily accessed by anyone who possesses high speed Internet connection, Analog Telephone Adaptor (ATA) as well as a phone. This way, users don’t have to pay more for talking to their near and dear ones living in different parts of the globe. With its state-of-art-technology, these phone solution provides it end users with complete flexible, scalable and reliable communication.

PC phone is a combination of conventional phone services and high speed Internet. For higher speed, user must select the provider that offers higher bandwidth to increase efficiency a call. PC-to -phone services combines voice, data and video communications in a single IP network i.e. Internet. VoIP calls are routed through the Internet using an efficient method known as packet switching. The communication of the sender that is in analog voice signals are converted into small digital packets. The digital packets are compressed so that they can absorb the noise. These compressed or encrypted signals are sent over the IP telephony and before it reaches the destination, digital packets are reconverted back into analog signals. This data transmission, conversion and switching takes place transparently and quickly, while considering the fact of security issues.

In addition, calling through VoIP phone cuts down the cost of calling to more than 50% of bills compared to PSTN service. Thereby, it allows user to enjoy cheaper long distance and international phone calls. With this high-end and flexible PC to phone solutions, user can share the data with minimum latency or less interruption around the world. Well, it can be said that PC Phone is the easiest way to call abroad at minimal rate. Moreover, users have access to other Internet and telecommunication services. It allows users to send and receive E-mails, voice mail, faxing and video conferencing at industry leading costs. A number of Internet telephony companies are coming up which offer innovative PC phone solutions to cater the growing demand of cheaper phone calls.

PC-to-phone offers various benefits to its users like excellent voice quality, call tariff network integration, feature richness, security and scalability. For availing the numerous advantages, users must opt for the VoIP provider that deals with wholesale carrier services, reseller programs and business solutions to their clients from various sectors of the industry. Moreover, client must avail PC Phone services from reputed provider to avail the latest features like voice mail, call forwarding, ID caller, and Call waiting and so on. With all benefits, today PC phone is considered as the right choice for ‘NEXT GENERATION’ people for sharing and transferring verbal and visual communication.

By: Angela Hayden

About the Author:

Get a Mortgage

Would you like a secret weapon to help power your international business expansion?

Are you wondering if there is one simple thing you could add to your current business mix that would help you a lot throughout the whole process?

What if you had a unique cross cultural vision tool in your pocket?

Third Culture Kids

Working with a Third Culture Kid could be the solution for your company.

Third Culture Kids (TCKs) aren’t children. It is a term used in international environments. It is used generally to describe people that grew up in strong international environments.

TCK’s are the children of parents from one culture living in a second culture, and their need to find their own identity in their specific third culture. The term can also go beyond this to refer to people who grew up exposed to different cultures early on in life.

Benefits For Your Companies International Development

Growing up in such environments means these people have a unique skill set.

They have the natural ability to see things from different cultural points of view. They probably do not have one strong national outlook. They immediately look at a situation and be aware of several different cultural points of view.

Even if TCK’s are working in a culture they are unfamiliar with, they will be quicker at understanding the different cultural points of view than someone without cross cultural experience.

This means that TCK’s understand the different expectations in politeness, in respect, in professional behaviors. And they are able to adjust their own behavior, often instantaneously, to navigate through these differences.

Having a TCK on your team should help you avoid cultural communication blunders. Or at least pick up on them faster and learn how to navigate through them effectively.

Differences With Others And Their Approach

People without international experience might think cross cultural communication is only about learning about the manners expected of you in foreign place and the local traditions.

Flexibility and adaptability have more to do with your international business success. Understanding why people behave differently is more important what you see them do differently than yourself.

People with confirmed international experience tend to be more curious, adaptable and quick learners. This can bring your company the fuel it needs to go international if your company is truly motivated to adapt to the international mindset.

Right Adaptation Needed To Work With Third Culture Kids

TCKs are a breed of their own. They are used to navigating in different waters. They can be freedom lovers. They might think your set of rules and orders obsolete, simply because they have been there, done that and moved on to something else.

Does this mean Third Culture Kids’s are prima donnas? No, that would be forgetting one of their main qualities: their deep rooted ability to adapt to different environments. Simply, this will be a cross cultural relationship.

If your company is firmly rooted in one cultural environment you will need to pay attention to how the TCK and your company work together. If your company’s drive is strong enough to go international, your company’s mindset will be open to other cultures.

A Little Effort For A Great International Business “Tool”

The little bit of adjustment you will have to make to work with a Third Culture Kid is well worth the extra vision he will bring to your international business.

Your international communication will be smoother and bring faster results. Third Culture Kids with the right background for your company will probably also provide you with valuable international business insights.

If you are looking for an easy way to speed up your company’s international mindset, working with Third Culture Kids can help put your international business expansion in top gear.

Are you committed to speeding up your international sales cycles?

Learn how to combine cross-cultural marketing tools and international sales strategies for faster sales.

Join us on the International Sales Road Map

Would you like to develop your international business?

Are you a beginner at international sales and marketing?

Read the Beginners Guide Discover Your International Business

By: Cindy King

About the Author:

Sewing

Living overseas is a wonderful, exciting adventure but it can be overwhelming if you don’t plan ahead of time. You should consider many things before you actually make the move to your new destination. You should think about the new environment for you and your family, the new language that you will have to learn, the expenses and the culture in your destination country. But one of the most important things to consider when you are moving abroad is how to pick the best international moving service.

The international moving company will be the one to handle the shipping of your personal belongings from the United States to your new country; therefore, utmost care should be taken in making this choice. The question now that may come to mind is “What is the best international moving service for me?” This article offers you some pointers to consider in choosing the best international moving service.

When making your decision as to what company should handle the shipping of your belongings, check the licenses and associations of the companies you are considering. First and foremost your international mover must have an OTI (Ocean Transportation Intermediary) / NVOCC (Non-Vessel Operating Common Carrier License. A moving company that tells you they “use” a company with this license is not operating legally. A company that carries a DOT (Department of Transportation) or MC (Motor Carrier) license can move your belongings from city to city, or state to state within the US but they cannot legally ship your belongings overseas. Your international mover should also be certified by relevant associations like IAM (International Association of Movers) formerly the (HHGFAA) Household Goods Forwarders Association of America, (AMSA) The American Moving and Storage Association, etc.

Moving abroad costs money. The very first thing to consider is the price. How much are you going to spend? How much can you afford to spend? Shop around and learn about the different services that are offered to suit every budget. You can move door to door, door to port. You can pack yourself, or have the international moving company pack for you for an additional cost.

When you get quotes from different international movers, are you comparing apples to apples? In other words are you comparing the same services, and the same volume? If you see one company is much cheaper, you need to investigate because they are much cheaper for a reason. The reasons for this could be that the volume they quoted is lower or the service is not door to door but door to port, etc. Do you need to hire an international shipper? Most of the international shipping companies have minimum volumes for shipping and if you are only taking a couple of boxes, it may not be cost effective. These questions will help you determine the budget for your move. Once you have figured out your budget, you can prioritize your belongings. In other words, are you taking everything; special items or personal effects only?

Check with the Embassy, Consulate or Customs about items that can and cannot be brought into your destination country. You can find your country’s Customs website on the internet. If you cannot find the answer you are looking for, there is always a “contact us” page and you can email the Customs directly to find answers to specific questions.

Are you going to ship via air or sea? Air freight can be very expensive but is fast. Sea shipments are slow but less expensive. Delivery dates are not guaranteed. The ship line controls the sailing schedules and there are factors that can cause delays such as a ship needing repair, storms, etc.

Does your ffer insurance for your shipment? Your international moving company is not an insurance company. Ask about the coverage types and cost of the insurance.

Does the Living overseas is a wonderful, exciting adventure but it can be overwhelming if you don’t plan ahead of time. You should consider many things before you actually make the move to your new destination. You should think about the new environment for you and your family, the new language that you will have to learn, the expenses and the culture in your destination country. But one of the most important things to consider when you are moving abroad is how to pick the best international moving service.

The international moving company will be the one to handle the shipping of your personal belongings from the United States to your new country; therefore, utmost care should be taken in making this choice. The question now that may come to mind is “What is the best international moving service for me?” This article offers you some pointers to consider in choosing the best international moving service.

When making your decision as to what company should handle the shipping of your belongings, check the licenses and associations of the companies you are considering. First and foremost your international mover must have an OTI (Ocean Transportation Intermediary) / NVOCC (Non-Vessel Operating Common Carrier License. A moving company that tells you they “use” a company with this license is not operating legally. A company that carries a DOT (Department of Transportation) or MC (Motor Carrier) license can move your belongings from city to city, or state to state within the US but they cannot legally ship your belongings overseas. Your international mover should also be certified by relevant associations like IAM (International Association of Movers) formerly the (HHGFAA) Household Goods Forwarders Association of America, (AMSA) The American Moving and Storage Association, etc.

Moving abroad costs money. The very first thing to consider is the price. How much are you going to spend? How much can you afford to spend? Shop around and learn about the different services that are offered to suit every budget. You can move door to door, door to port. You can pack yourself, or have the international moving company pack for you for an additional cost.

When you get quotes from different international movers, are you comparing apples to apples? In other words are you comparing the same services, and the same volume? If you see one company is much cheaper, you need to investigate because they are much cheaper for a reason. The reasons for this could be that the volume they quoted is lower or the service is not door to door but door to port, etc. Do you need to hire an international shipper? Most of the international shipping companies have minimum volumes for shipping and if you are only taking a couple of boxes, it may not be cost effective. These questions will help you determine the budget for your move. Once you have figured out your budget, you can prioritize your belongings. In other words, are you taking everything; special items or personal effects only?

Check with the Embassy, Consulate or Customs about items that can and cannot be brought into your destination country. You can find your country’s Customs website on the internet. If you cannot find the answer you are looking for, there is always a “contact us” page and you can email the Customs directly to find answers to specific questions.

Are you going to ship via air or sea? Air freight can be very expensive but is fast. Sea shipments are slow but less expensive. Delivery dates are not guaranteed. The ship line controls the sailing schedules and there are factors that can cause delays such as a ship needing repair, storms, etc.

Does your international moving company offer insurance for your shipment? Your international moving company is not an insurance company. Ask about the coverage types and cost of the insurance.

Does the international moving company explain the process and will they keep you informed of the progresses? If they are attentive to your needs and provide you with information, you can rest assured your goods will be well handled. explain the process and will they keep you informed of the progresses? If they are attentive to your needs and provide you with information, you can rest assured your goods will be well handled.

By: John Jo

About the Author:

Affiliate Marketing

In 1990 almost all international phone calls from the United States were made through the large monopoly phone companies like MCI or AT&T.  An international phone call from the USA to Europe would have cost a caller $0.50 per minute or more.  Due to deregulation of the telecommunications industry, increased competition and the advent of new technology, the same call today could cost as little as $0.01 per minute.  An amazing occurrence if one considers the Consumer Price Index (CPI) in the United States has nearly doubled during the same time period.  International calling from the United States today is cheaper than ever and consumers have a wide array of calling products to choose from.  In some ways this has made the hunt for the “right calling product” more challenging.

The newer INTERNET based technologies like Voice over INTERNET Protocol (VoIP) and PC to Phone have likely changed the communication landscape forever.  There are currently over 10 million VoIP phones in the United States and that number is expected to grow to over 40 million over the next few years.  Many individuals and business now use the INTERNET for nearly all of their telecommunication needs.  VoIP has become very popular because it can be used for low cost local phone service as well as cheap domestic and international long distance. In some cases the call quality is not as good as more traditional phone service but the technology continues to improve and, in most cases, the cost is far lower than any other option.

Now there are also several choices for consumers who use cell phones or traditional (land line) phone service.  A trend that is becoming more common is the use of multiple service providers instead of relying on single carrier for making both local and long distance calls.  Many consumers now use one company for their local phone service and another, lower cost, service provider for making their domestic and international long distance.  Most of the low cost long distance products are phone card or some other prepaid calling product like Tel3 Advantage.  In the past, many of these low cost products also had low quality and were difficult to use but times have changed.  Now there are many high quality discount long distance products that function almost seamlessly with any local phone service provider a consumer may use.  An example is the new Tel3 Mobile International Calling Plan, it is used to make cheap international calls seamlessly from any Smart Phone. Tel3 Mobile can be used with any local service provider so there is nothing to change. . Gone are the days when it was necessary to dial PIN codes and account numbers when placing a call with a phone card.  Prepaid calling products continue to gain popularity because they offer convenience, low cost and a great way to budget telephone expenses.

Long distance phone service has never been more affordable and consumers have never had more choices than they do today.  Any one using high cost long distance has just not bothered to explore the market and see the large number of innovative products available that significantly reduce the cost of making domestic or international long distance calls. 

Visit the International Calling Guide for information on low cost options for making domestic or international long distance phone calls. 

By: Bob Graham

About the Author:

Child Custody Lawyers

International Calls can be made very easily at cheap calling cost with the introduction of the internet telephony. The internet is known to provide the best of the services when it comes to features related to calling. The calling methods brought to use are awesome and people can make cheap calls based on this technology.

Calls are made with calling cards in case of internet calling methods. The user also finds the system very tangible for making long distance calls. This system serves as the ultimate means to make calls and also share files with ease. With this method in hand, the users find it possible to share photos, videos, images and clips with everyone.

The international calling cards when brought to use make it possible for people to make long distance calls. People can easily dial to friends and family members from the comfort of one’s home or office as the case may be. The user no longer has to pay huge bills and can talk for long hours with the cheap calls made available to people. The users can talk to their beloved ones for long duration of time at very nominal price rates and at the same time see them on the computer screen.

International phone calls have become like local calls with the coming of internet telephony. Such phone calls are not just limited for personal reasons. But one makes use of them for professional purposes too. Business can be established and growth can be achieved on international frontiers by applying this method of telephony. Moreover, as the method is based on prepaid credit system so the users can keep control over their budget. The cards are either disposable or refillable. They also have a PIN printed and so users can access these cards only by making use of the pin.

The best part of this calling cards are that cheap international calls can be made with ease. The caller may be traveling to distant places of the world, but still can remain connected to family and home at cheap calling rates. The fun of this calling is that one never feels away from home as the caller can see the end user on the screen for the computer that is used for making the call. Moreover, with prepaid and post paid billing options, this method of call making has super-ceded other traditional methods in terms of the bills.

The voice quality of this system is also pitched high. There is no difference in voice quality even in case of international calls. The users find themselves to be very close to their loved ones on this network.

There are various companies that offer calling cards based on several schemes. The user can find travel, international and other such cards for making calls based on this system of telephony. Each of these cards have different rates, different plans and different denominations. The users have to choose the one that is the best. All these cards can effectively bring the same internet telephony service with all its features well established.

Making phone calls has thus become simple with the emergence of this system of telephony. International calls too have become cheap and so any form of business can flourish with this method of telephony. In fact, call centres too make use of this technology to make international calls. The system is very effective for call making and also for sharing files with international clients.

By: Nisha Garg

About the Author:

Loan Consolidation

There are an amount of objects folk gather in their free time starting from greeting cards and pictures and finishing with motorbikes and yachts. Though international phone card gathering has not as long history of existence, still it developed with a high rapidity and nowadays has achieved its fame all round the world. Prepaid phone cards were made of usual fabric and didn’t have special coloring. Calling cards grew popular and an object for collecting in the time when the manufacturers produced the first decorative phone cards.

A person who is preparing to begin or has just started gathering prepaid calling cards ought to know a number of helpful things. Main thing you should decide is what sort of cards you are going to gather and by what concept you will group them. You might group calling cards pursuant to the following parameters: all cards only from a peculiar state or one manufacturer (to start you may take your own state); cards from varied world regions (Europe, West Indies) append the diversity of cards from a number of countries that a particular land collection does not have; one card from every definite state; private issue cards (made by individual associations or individuals for commercial goals); maintenance and complimentary cards (they are used by engineers and organization’s workers for inspecting or promotional aims) and themes cards. The last group is of big popularity with people because the variety of themes is immense. There exist some parameters the person should be aware of: international phone card can be manufactured of different materials, for instance, plastic or paper; cards can be of various size and geometry (rectangular, elongated); they may be from a particular product or occurrence (Cola, World Cup); cards may be modern, mint or old, upfront or rechargeable and infrequent edition cards. It is not obligatorily that all international phone card should own all of the introduced characteristics, some of them might be missing.

You might ask a quest: where and how one can get prepaid calling cards. The simplest and convenient way is to purchase cards in a local phone booth. Items merely from your native land are the output which is sold by many calling booths. The other way is to exchange cards with your acquaintances or other collectors from other countries. At times it is rather complicated to find a person with the same collecting interests and it’ll take some time to solve which way the exchange will be accomplished (a card for one, two-three for one and so on). International phone cards might be bought straightly from dealers. In the very condition one has to be wary not to be defrauded by the bilker.

As the last item we must touch upon is that collecting phone cards is a rather time-losing and expensive pleasure. Every inveterate collector may suppose it a credit to own, for instance, rare release card which is limited in quantity. As you may guess the price of the very examples is enough big or in case of exchange it will cost a number of issues or even you’ll need to go to the other state to obtain one. A person will also need particular equipment like albums, washing instruments, saving cases and several other issues for the collection. Gathering calling cards is not simply a pastime but a hard work that brings pleasure.

By: Robert Owen

About the Author:

Beautiful Women Discussion

Lot of persons find it rather difficult to get the most appropriate prepaid phone cards on the saturated today’s market. There is certainly great diversity of proposals. When you try to get it with the assistance of the web, it’ll present you more than 12 million responses. It’s really popular to get internet phone cards with lowest rates among the majority of people. But commonly these are the most expensive cards. So, you have to decide what you demand before purchasing a phone card, to make your buy wise and economize some money of yours.

You’ll see really large diversity of calling cards nowadays, that is why you are to clarify what you need. It will be rather helpful for you, when you will search for international phone card. It’s significant for you not to underestimate the calling time price. The diversity of proposals will give you an opportunity to call for 1 dollar per 40 minutes to any spot of the world.

Then you should identify your options. Find the information about phone card and only then buy it. There are lots of corporations that have hidden or sudden fees. So, the card you will get will be spent for 1 telephone talk.

Many online phone cards have different hidden fees. Corporations have designed a variety of fees. For instance, these are termination fees, disconnection fees, maintenance fees etc. And the gross rates for main goals are usually the similar ones. But the fees aren’t all the time inappropriate ones, because in most cases they depend on your demands. So, persons who don’t need to make calls frequently can get a card for one-shot call where the prices are rather significant. This system is very good for people, who make 1 or 2 calls. For instance, you can get a card with fortnight fee, if you do not need it for a longer period of time. But those people, who demand often calling card usage, must buy no fees calling cards, that will be profitable for them. The rates here are greater, but there are no termination or connection charges.

Another system of installment is minute rounding that’s designed to get more money from customers. The typical scheme is 1-minute rounding. Also, some calling cards perform two, three or four-minute rounding. For those, who did not understand, minute rounding is the charge of you phone calls. The most sum of money you can economize with 1-minute rounding, but the calling cards with higher rounding will perform lower rates on minutes.

The cards that are intended for making calls from the region of the USA perform exempt access numbers. Local access numbers may be also included in the service and can have lower rates per minute. If it is a local access number you’ll have to utilize it. Some people may make international calls from their cell phones, if their company provides them with low fees for such calls. It means that it will not cost some extra funds to make a local access call.

If you travel somewhere and use a calling card, make sure that your card has access to the numbers of the state you are going to. You can also check if it is toll free to local access numbers. Clarify everything and it will be easy to get the most appropriate cheap calling cards.

By: Robert Owen

About the Author:

Dating and Good Relationshipx

e the technology in American cell phones is different from that of the rest of the world, albeit only slightly, it still means that a US cell phone owner traveling abroad may find that his phone has compatibility issues with the GSM system used elsewhere in the world.

The U.S. cell phone may not be compatible for several reasons. First, radio frequencies and encoding services may be different within two companies, even those within the U.S.

Even in the U.S., your phone won’t work on the competitor’s frequency unless there is a cross billing agreement between the two companies involved. This problem is exacerbated when more than one country is involved

If you want a cell phone which will work in the U.S. and in Europe as well, you should be prepared to purchase a triple band phone-one which will work on 900 Hz, 850 HZ and 1900 HZ. This should play in most areas of the world. Often overlooked and pretty important is to buy a multi-band cell phone with the ability to switch networks and use VOIP to make cell phone to cell phone calls.S. actors.

In addition to the single and duals band phones, the triple band has now been followed by a quad band.

Once you purchase the right phone for U.S. and satellite services, you also need to signs up to use the internet service; you must connect with one of the service providers who can use the GSM network. Only three providers in the U.S. have GSM service, Cingular, and T-Mobile.

Even if you purchase service one of these two companies and purchase a tri-band phone, some of the companies routinely lock out so you cannot call off another competitor’s network. You may find it very difficult to persuade Cingular, for instance to unlock your phone when you need it overseas.

You can buy an international cell phone from the manufacturer which will probably cost the most, you can buy it along with its service plan through an American dealer. People can also purchase international cell phones from local resellers that are often more cost effective than buying a cell at retail. You do have some newer options to buy international phones from new suppliers like ZERO1 Communications, as an example. Costs are often close enough or even lower for international cell phones as for lower power domestic mobile phones.

You can, of course buy overseas, but will face the same compatibility issues in reverse once you return to the U S. You will also find yourself spending an inordinate amount of time arranging for the overseas purchase.

By: Daniel Stouffer

About the Author:

LaCrosse

 

INTRODUCTION

The explosive growth of international financial transactions and capital flows is one of the most far-reaching economic developments of the late 20th century. Net private capital flows to developing countries tripled – to more than US$150 billion a year during 1995 to 1997 from roughly US$50 billion a year during 1987 to 1989. At the same time, the ratio of private capital flows to domestic investment in developing countries increased to 20% in 1996 from only 3% in 1990. Hence, this has effected a shift from the national economy to global economies in which production and consumption is internationalised and capital flow freely and instantly across borders.

Powerful forces have driven the rapid growth of international capital flows, including the trend in both industrial and developing countries towards economic liberalization and the globalisation of trade. Revolutionary changes in information and communications technologies have transformed the financial services industry worldwide. Computer links enable investors to access information on asset prices at minimal cost on a real time basis, while increased computing power enables them to rapidly circulate correlations among asset prices and between asset prices and other variables. At the same time, new technologies make it increasingly difficult for governments to control either inward or outward international capital flows when they wish to do so.

In this context, perhaps financial markets are best understood as networks and global markets as networks of different markets linked through hubs or financial centres.

All this means that the liberalisation of capital markets and with it, likely increases in the volume and volatility of international capital flows is an ongoing, and to some extent, irreversible process.

It has contributed to higher investment, faster growth and rising living standards. But this can also give rise to shocks and stresses resulting in financial crisis as we have all witnessed in 1997 and 1998.

Testimonies to the risks of open capital markets are the several waves of instability in the financial markets in early 1998 and again in the wake of the Russian crisis in August/September 1998. To illustrate, net private capital outflows from the five countries most affected by the crisis, namely, Indonesia, Korea, Malaysia, Thailand and the Philippines rose to US $28.3 billion in 1998, reflecting mainly the decline in net bank and non-bank lending. Meanwhile, foreign direct investment which had been one of the main sources of growth during the pre-crisis period in these countries remained sluggish in 1998, amounting to US$8.5 billion as compared to an average amount of US$17.8 billion during the period 1995 to 1995.

Global trade has experienced a slowdown over the past two years due to trade contraction of East Asian economies. Generally, world GDP and trade growth slowed in the past 1997/1998 as the East Asian crisis deepened and its repercussion were felt increasingly outside the region. Asia recorded the strongest import and export contraction in volume and value terms of all regions of the world. The dollar value of Asia’s imports registered an unprecedented decline of 17.5%. The five Asian countries most affected by the financial crisis that broke in mid-1997, that is, Malaysia, Indonesia, Philippines, the Republic of Korea and Thailand experienced import contraction by one-third.

In the context of these powerful trends, I like to discuss a few significant the issues relating to them, particularly from a capital market regulator’s perspective. Given the breadth of the topic at hand, and in the interest of keeping to time, please allow me to focus particularly on current trends and difficulties faced in the capital markets.

DEVELOPMENTS IN ELECTRONIC COMMERCE AND CAPITAL MARKET REGULATION

Developments in computer and information technology have made dramatic changes to the way the financial services industry operates. These changes are affecting and will affect every aspect of the financial services industry and offer the possibility of reduced costs in raising capital, greater efficiencies in the mobilisation of domestic and international savings and the provision of better, cheaper investment products more closely tailored to the needs of different investor segments. The convergence of computer and communications technology is promoting the development of computer mediated networks, allowing for users to communicate and transmit data and other information regardless of boundaries and distance. As communication costs continue to fall, the potential of outsourcing grows.

These changes will affect –

The way investment products are offered, distributed and marketed and the way in which investors access information about the products and entities involved;

The activities of financial services intermediaries, especially advisers, and the way they deal with investors;

The continued blurring of product and institutional boundaries, and even the scope of financial services sector itself as non-traditional entities take on some of the functions of financial intermediaries;

The methods of distribution and marketing of investment products which will increasingly draw upon the techniques of mass marketed consumer products; and

The way secondary trading in investment products takes place as greater scope for direct investor transactions and low cost competitors to established securities and futures markets becomes more of a reality.

Just as electronic commerce affects investors and providers of financial products and services, it will affect the role of corporations and capital market regulators. Just as electronic commerce facilitates activities across jurisdictional borders, it poses in clear terms questions about the practical enforceability of national laws. As well as practical enforcement questions, electronic commerce also raises issues about the role that capital market regulators should play and the effectiveness of many of the traditional regulatory approaches and mechanisms that have been employed by them. An example might be an offering of securities made without a prospectus or registration statement on the Internet by a person in a jurisdiction with which the capital market regulator has no regular contact or mutual enforcement arrangements. There are also concerns about illegal and fraudulent activity on the Internet.

In this regard, the Malaysian position is that it is committed towards a structured development of electronic commerce. Towards this end, Malaysia has proposed to introduce a National E-Commerce Masterplan. This Masterplan should focus on key initiatives which will create momentum in trading via e-commerce. Besides looking at developing the technological infrastructure such as telecommunications infrastructure and systems providing for electronic delivery of goods as well as payment, the Government is also aware that there are legal and regulatory issues which will arise with regard to e-commerce. Malaysia has introduced several sets of laws catered towards proper regulation of e-commerce known as ‘Cyberlaws’. The Cyberlaws which have been introduced include, among others :

(i) Computer Crimes Act 1997

This Act provides for a framework to counter computer offences such as unauthorised access to computer material, crimes of fraud and dishonesty through the computer, unauthorised modification of contents of a computer and so on. The Act is not limited by jurisdiction. It has effect outside as well as inside Malaysia. Where a computer crime is committed outside Malaysia in respect of computers or data in Malaysia or that which may be connected to or used in Malaysia, the crime may be treated as a crime within Malaysia and the perpetrator may be dealt with under the provisions of this Act; and

(ii) Digital Signatures Act 1997

This Act addresses issues of security and authenticity of electronic transactions and it allows for greater confidentiality and integrity of messages. It allows for businesses to use electronic signatures instead of hand-written counterparts in legal and business transactions. The Act provides for the treatment of document signed with a digital signature created in accordance with this Act to be treated as legally binding as if the document was signed with a handwritten signature.

The development of an effective regulatory framework is essential in attracting and maintaining confidence for the world in trading with Malaysian counterparts via electronic means. The regulatory framework as it stands is currently incomplete as many other areas such as electronic banking and broking are still in the process of development.

To instil confidence, Malaysia must be able to provide for regulatory certainty and coherence as well as prevent regulatory capriciousness. In relation to financial services, a major consideration is cross-border implications. The Securities Commission, as an example, is currently looking at issues relating to Internet offering of securities and fund management and broking services over the Internet. A re-examination of current laws would need to be conducted to ensure that they have not been overtaken by technology and to restructure the laws so that they are technology neutral.

As far as the capital market is concerned, the Securities Commission recognises that electronic commerce is an area where it is important that the regulatory infrastructure responds in a positive and timely way to facilitate market developments and not hinder innovation in market products and processes. We believe that there are important benefits to be gained through the Commission’s facilitation of market developments in this area for the competitiveness of the Malaysian capital market, efficiencies in the operation of our capital markets and the better making of investors at lower cost. At the same time, the Securities Commission considers that it is important for the successful implementation of electronic commerce that investors retain confidence in the integrity of the market for investment products.

LIBERALISATION VS. PROTECTIONISM

On the issue of liberalisation vis-à-vis protectionism, there has been a proliferation of multi-lateral trade agreements since the middle of the century. Such agreements provide for a framework of rules within which nations are ‘obligated’ to assure other nations signatory to the agreement of a sovereign’s approach towards international trade. For example, Malaysia is a member of, among others, the World Trade Organisation through which it is a signatory to the GATS (General Agreement on Trade in Services) and GATT (General Agreement on Tariffs in Trade), APEC as well as ASEAN, all of which have the objective of achieving liberalised trading of goods and services within specified, albeit not immediate, time frames. Through these trade blocs, Malaysia has committed itself to progressive liberalisation which essentially entails a gradual opening of the economy to foreign participants.

The globalisation of economies is intrinsically linked to the internationalisation of the services industry. It plays a fundamental role in the growing interdependence of markets and production across nations. Information technology has further expanded the scope of tradability of this industry. Access to efficient services matters not only because it creates new potential for export but also it will be an increasingly important determinant of economic productivity and competitiveness. The main thrusts of the ‘services revolution’ are the rapid expansion of the knowledge-based services such as professional and technical services, banking and insurance, healthcare and education. Responding to this phenomenon, regulatory barriers to entry in service industries are being reduced worldwide, either through unilateral reforms, reciprocal negotiation or multilateral agreements. Developing countries such as Malaysia are increasingly looking at foreign direct investment in services as an especially powerful means of transferring technical and managerial know-how, besides attracting foreign capital and investment to the country.

Malaysia has made a commitment under GATS under legal services covering advisory and consultancy services relating to home country laws, international law and offshore corporation laws of Malaysia. Under the GATS commitments, commercial presence of foreign legal firms is not available except in relation to the Federal Territory of Labuan and in such a case, their services are limited to legal services given to offshore corporations established in Labuan. However, there are no limitations placed on the provision of legal service cross-border, that is, provision of such service from a foreigner without having a legal presence in Malaysia. This may be done via fax, telephone or the Internet. As stated before, most aspects of legal services does not need the physical presence of the service provider except perhaps where a court appearance is necessary. Furthermore, a Malaysian may obtain legal services abroad without any limitation either.

Malaysia is also signatory to the ASEAN Framework Agreement on Trade in Services (AFAS). The AFAS is an agreement made within the auspices of the GATS. In very basic terms, commitments under AFAS are GATS-plus which means that liberalisation of trade is accelerated within the ASEAN region under the AFAS as compared to the world at large under GATS. Its ultimate aim is to achieve regional integration and free flow of services within the region. In achieving integration and free flow of services within the region, many issues would need to be ironed out. Issues such as harmonisation of professional standards, acceptable levels of accreditation between member countries, movement of labour in relation to provision of these services, licensing and certification of service suppliers are still under intense discussion within the Member Countries. Taking into account the different levels of economic and regulatory maturity of Member Countries within the ASEAN, it is understandable that it would be a long process of consultation before a consensus may be achieved.

LIBERALISATION OF CAPITAL ACCOUNT

A most obvious impact of globalisation of trade are pressures exerted on developing nations to liberalise their financial markets and capital accounts. However, it is important to recognise that domestic and international financial liberalisation heighten the risk of crises if not supported by prudential supervision and regulation and appropriate macroeconomic policies. Domestic liberalisation, by intensifying competition in the financial sector, removes a cushion protecting intermediaries from the consequences of bad loan and management practices. It can allow domestic financial institutions to expand risky activities at rates that far exceed their capacity to manage them. By allowing domestic financial institutions access to complex derivative instruments it can make evaluating bank balance sheets more difficult and stretch the capacity of regulators to monitor risks. External financial liberalisation in allowing foreign entry into the domestic financial markets may facilitate easy access to an abundant supply of offshore funding and risky foreign investments. A currency crisis or unexpected devaluation (such as in the Asian crisis) can undermine the solvency of banks and corporations which may have built up large liabilities denominated in foreign currency and are unprotected against foreign exchange rate changes.

The ideal free market is one that every one should be free to enter, to participate in and to leave. However, events in the recent financial crises have led many of us to believe that in the freest of markets, there is a need to ensure that free flow of capital does not destabilise the market itself.

Indeed, calls for reform have gained increasing support and credence within the international community with the unfolding of the devastating effects of the crisis beginning mid-1997. The SC’s work within IOSCO’s Emerging Markets Committee has drawn attention to fundamental weaknesses in the existing global financial infrastructure that have caused and exacerbated these effects. These weaknesses include the inordinate power of highly leveraged institutions to move markets, the destabilising force of volatile short-term capital flows and the failure of existing credit assessment systems to adequately inform market participants of increasing risk of default.

One example of this mounting consensus was the express recognition by G7 countries at their recent meeting in Cologne of the need to strengthen the international financial architecture.

There are now increasing calls for greater transparency and regulation of hedge funds and greater awareness of the dangers of volatile short-term capital flows. To rebuild East Asia and the global economy, we now urgently need to engage in a sincere discussion about what constitutes sound governance in the contemporary world.

On the domestic front, we would have to ask ourselves this question: has our financial markets kept pace with change? Whilst markets have become global, applicable rules and regulations remain predominantly parochial or local. From a regulator’s perspective, the challenge for us in a global market is to design the regulatory and structural framework which will allow the market to function efficiently, competitively in a fair and level playing field environment, ensuring at the same time that the market is not subject to highly concentrated or destabilising forces that would disrupt its functioning.

The recent crisis also shows up the need for a careful and sequenced approach towards liberalising a country’s capital account. The experiences of Thailand, Korea and Indonesia clearly tells us that there is no prescribed formula on sequencing. However, it is important to recognise that countries vary greatly in their levels of economic and financial development, in their institutional structures, in their legal systems and business practices, and their capacity to manage change in a host of areas relevant for financial liberalisation. It is in recognition of this that the IMF policy-setting committee and subsequently the Finance Ministers and central bank governors of the G7 industrial nations, in the fall of 1998, stressed that a country opening its capital account must do so in an orderly, gradual and well sequenced manner.

Issues of liberalisation versus protectionism would need to be considered at great length to ensure that a country is competitive in a global trading environment. In a developing nation such as Malaysia, a protectionist policy towards local financial services industry and industry participants have been adopted to assist the local industry to develop to international standards. In the area of financial services, for example, the Government’s stance has been that consolidation of local financial services providers is necessary to ensure the development of a core group of strong and stable financial institutions to be able to withstand international competition when the financial services markets are opened to international participants.

Indeed, the Malaysian experience clearly shows that a premature freeing up of the capital account, which was done in 1988, without the requisite reforms and institutional arrangements in order to withstand the shocks, can result in debilitating effects as was faced in the Malaysian financial services industry.

MALAYSIA’S EXPERIENCE

Perhaps the most important lesson learnt from the Asian financial crisis was the interdependence of financial markets. Even the most developed economies were not spared of the effects of the financial turmoil which began as a result of Thailand’s default on its eurobond issue in February 1997. By May, 1997, the Malaysian Ringgit was under severe pressure from currency speculators and interest rates had risen from between 7% to 9%. It was reported that Bank Negara Malaysia expended about RM1.2 billion of its foreign exchange reserves to try to stave off the attack of currency speculators. However, this was the first of many repeated attacks on the currency.

The effects of the currency crisis began to take its toll on the country in 1998. Interest rates were rising to above 11% and the Ringgit had dipped to an unprecedented low of RM4.71 in January, 1998. All sectors of the economy experienced severe contraction as access to liquidity and credit became more scarce. Bank Negara had made many attempts to quell the effects of the financial crisis through imposition of tight monetary policies and attempts to ease credit to certain sectors of the economy to no avail. But the avalanche would not stop.

Malaysia’s sovereign credit rating was downgraded by international rating agencies to just above so-called junk bond status. Malaysia was facing a serious credit squeeze. Raising international capital was prohibitively costly. Flight of capital from the country resulted in a sharp decline in the stock market which fell to levels of 250 before bottoming out in the second half of 1998.

As many of you are aware Malaysia’s response to the crisis was one that was totally unexpected by the global community. The Government decided that it needed to protect the economy from increasing global pressures on the Malaysian economy. On 1 September, 1998 the Government introduced selective exchange controls with the intention of curbing and preventing further manipulation and speculation on the Ringgit. The Ringgit was pegged at RM3.80. The Government took further measures to discourage short-term flows of money by requiring that inflow of funds should remain in the country for at least one year. On 15 February 1999, this was replaced with an exit levy for repatriation of capital. The selective exchange control measures imposed by the central bank on 1 September, 1998 were directed towards reducing the internationalisation of the Ringgit by eliminating access to Ringgit by speculators and reducing offshore trading of the Ringgit. This involved the introduction of rules relating to the external account transactions of non-residents and currency of settlement of trade transactions. However, general payments, including movement of funds relating to long-term investments and repatriation of profits, interest and dividends remain unaffected. Payment for the import of goods and services must be made in foreign currency. All export proceeds must be repatriated back to Malaysia within six months of the date of export and proceeds from exports must be received in foreign currency.

The selective exchange control regime is intended to provide the time and opportunity for the Government to institute the necessary financial reforms in the Malaysian financial markets. This is in fact in progress in the work of Danamodal (the equivalent of the Resolution Trust Corporation of the US) to alleviate non-performing loan from banks’ balance sheets and Danamodal which is to recapitalise the banks. The Government is also committed to consolidating the domestic financial services industry in having few but strong and viable financial services providers in order to be prepared for financial liberalisation.

GIVING CERTAINTY TO INTERNATIONAL FINANCIAL TRANSACTIONS AND PROTECTION TO FOREIGN INVESTMENTS

International trade and finance, because of its global nature, necessarily involves many areas which may give rise to uncertainty as to the applicability of the contract under which certain trade and financing arrangements are made. These areas range from political issues and political stability to sovereign intervention of the economy, certainty of applicable laws as well as independence of the judiciary.

The Asian lawyer will be fascinated by the rapid changes which are taking place in foreign investment law both within this region as well as in the rest of the world. In less than half a century, the states of Asia have moved through a whole range of stances which could be adopted towards foreign investment. The immediate post-colonial period was characterised by a period of hostility towards foreign investment, motivated by the belief that the ending of economic imperialism alone will bring about true independence. The ensuing period was dominated by a debate about the regulation of multinational corporations and the fear that they posed a threat to state sovereignty. In this period, laws were devised to control the entry of foreign investment and the manner in which such foreign investment operated in the host country after entry. The third and present period is a period of pragmatism where the dominant view is that foreign investment, if properly harnessed, can be an instrument which generates rapid economic development. Competition for the limited investment that is available means that each state country which is bent on a foreign investment led growth strategy must make its laws as hospitable to the foreign investor as the other state which is also bent on a similar strategy.

As much as there is competition among countries to attract foreign investment, there is competition among multinational corporations to enter host countries. Whereas previously the market was dominated by large multinationals, now, there are small and medium enterprises which can transfer more appropriate technology and bring sufficient assets for investment.

This “open door” policy towards foreign investment in developing countries is typically achieved through careful screening of entry by administrative agencies which have been established for the purpose and regulation of the process of foreign investment after entry has been made. After entry, there is continued surveillance of the foreign investment to ensure that the foreign investment keeps to the conditions upon which entry was permitted. In this regard, attitudes to foreign investment protection and dispute resolution will be affected by the new strategies adopted towards foreign investment.

In the context of the new strategies which have been developed by controlling entry and the later surveillance of operations of foreign investment, the foreign investment has ceased to be a contract based matter and had become a process initiated by a contract no doubt but controlled at every point through the public law machinery of the state. The old notions of foreign investment protection which concentrated on the making of the contract and the contract as the basis of all rights of the foreign investor would inevitably become obsolete. This transformation which has taken place is crucial to the devising of effective methods of foreign investment protection. The subject matter of the protection has also changed in that not only physical assets of the foreign investor but his intangible assets which includes intellectual property rights as well as public law rights to licences and privileges have become the subject of protection.

The proposition that contractual provisions in an agreement concluded with a host country offer little protection to foreign investment must be qualified in a situation when a bilateral investment treaty has been entered between the state of the foreign investor and the host country. The result will be different, for the contract becomes effectively internationalised as a result of the existence of such a treaty. It is a basic proposition of international law that any matter that is essentially within the domestic jurisdiction of any state could be internationalised if it is made the subject of an international treaty. The existence of a bilateral investment treaty which covers the foreign investment then internationalises the whole process of foreign investment which would otherwise have been a process that takes place entirely within the sovereign jurisdiction of the host state. But, whether this result will follow depends on the terms of the bilateral investment treaty.

As a matter of general international law, the position seem to be that a contract between a party and host country must always be subject to a national legal system. Those who seek to prove the contrary have an onerous task of showing that his accepted proposition has undergone a change. There are a few usually uncontested arbitral awards which support the view that a foreign investment contract is subject to international law or some other supranational system.

Bilateral investment treaties are obviously regarded as important by both capital exporting and capital importing states. But, these treaties are not uniform and they do not have the ability to create any uniform law on foreign investment protection. But their existence adds to investor confidence and creates an expectation of investor protection. The importance of these treaties lies in the several results they achieve. The first is a signaling function about the national policy towards foreign investment.

Another advantage is that the foreign investment contract in the context of a bilateral investment treaties could have the effect of forming assets protected by the bilateral investment treaties. This will also include licences and other advantages obtained from the government during the course of the foreign investment. Whereas without the bilateral investment treaty these licences and advantages may have been without protection under general international law, they new receive protection as a result of the wide definition of property in the bilateral investment treaty. Whether the host country did intend that its administrative decisions be subjected to international review as a result of the treaty, will remain a moot point. But, it remains a possible result if the treaty.

In Malaysia, efforts have been made by the Government to ensure a level of certainty between international trading partners trading with Malaysian counterparts. The Government has expressly guaranteed that foreign companies acquiring equity participation in local companies would not be required to restructure its equity at any time[1]. Further to this, the Government has taken many steps to increase confidence of foreign investors in Malaysia.

INVESTMENT GUARANTEE AGREEMENTS (IGA”)

The Investment Guarantee Agreement protects parties involved in an international transaction from non-commercial risks such as nationalisation and expropriation. The IGA will provide a foreign investor with the following :

protection against nationalisation and expropriation;

prompt and adequate compensation in the event of nationalisation or expropriation under a lawful or public purpose;

free remittance of currency, profits, capital or other fees on investment;

settlement of investment disputes either through a process of consultation through diplomatic channels or if such process fails, for referral to the International Court of Justice. Disputes in connection with investments, under IGAs should first be resolved through local judicial facilities. In the event of failure to settle, it would be referred to the Convention on the Settlement of Investment Disputes or the International Adhoc Arbitral Tribunal established under the Arbitration Rules of the United Nations Commission on International Trade Law.

Malaysia has concluded IGAs with about 64 trading nations including trading blocs such as ASEAN and major trading partners such as the United States of America, United Kingdom, Germany, Taiwan, etc.

TRADE DISPUTE SETTLEMENT

Another aspect of international trade is the availability of acceptable dispute resolution form. Globalisation of trade obviously involves greater potential for generating international trade disputes. The international business community looks for prompt, economical and fair conflict-resolution mechanisms. Negotiation, conciliation, litigation, and arbitration are well-known conflict-resolution devices. Direct negotiations and conciliation may resolve a conflict. However, when parties fail to solve the controversy through direct negotiations, they have two choices: litigation or arbitration.

Within the context of the GATS, there is an express provision for trade settlement dispute where countries have disputes in relation to commitments made under the agreement. The WTO have provided for procedures in relation to a dispute settlement process. The dispute settlement procedure is considered to be the WTO’s most individual contribution to the stability of the global economy. The WTO’s procedure underscores the rule of law, and it makes the trading system more secure and predictable. It is clearly structured, with flexible timetables set for completing a case. First rulings are made by a panel, appeals based on points of law are possible and all final rulings or decisions are made by the WTO’s full membership. No single country can block a decision.

Malaysia is also signatory to the Convention on the Settlement of Investment Disputes established under the auspices of the International Bank for Reconstruction and Development that establishes facilities for international conciliation or arbitration. Further to this, the Kuala Lumpur Regional Centre for Arbitration was established in 1978 with the objective of providing a system for the settlement of disputes for the benefit of parties engaged in trade, commerce and investments with and within the Asian and Pacific region.

In conclusion, as we draw close to the new millennium, it is indeed a challenge to us all to be able to grapple with some of the abovementioned issues and adopt appropriate responses.

By: loveleenchawla

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