Critically examine the role of international credit in contemporary Essay - 2

Critically examine the role of international credit in contemporary economies - Essay Example One of the major developments after the Second World War period was the internationalization or liberalization of the financial markets with United States of America on the front. The multinational corporations of USA spread their financial dealings and operation to different bases across nations. Simultaneously a large amount of funds were allocated for purchase of treasury bills of USA. The banks of USA have also spread their operations worldwide during the seventies. International operations contributed to around 20 percent of the total income of the American banks. International credit provides certain distinct benefits to the people of the borrowing nation. These funds obtained through international credit help in financing the projects of local firms and the government. International financial system offers different opportunities of diversification to an investor, which might not be locally available. However, when an economy joins the global financial markets, certain economi c variables may be restricted as well as the effectiveness of certain basic economic and national policies. For instance the capital mobility across the world has automatically restricted the movements of domestic interest rates and also the control of money supply becomes so difficult under fixed exchange rates. Before economic transactions occur between the residents of different nations, certain arrangements are require making payments effective as well as bringing about the exchange or transaction successfully. The arrangements required need to address the political regimes, legal systems and the customary process of doing business in various countries. The basic of the international monetary system centers on the barter system prevalent in history. To make the exchange procedures convenient and easy to handle, a rage of monetary arrangements came into operation.

The Liability of the Manufacturers and Their Conduct in Case of Essay

The Liability of the Manufacturers and Their Conduct in Case of Accidents - Essay Example Courts have considered on a case to case basis the liability of the manufacturers and their conduct in case of accidents. For instance, in the case of Messina v. Clark Equipment, 263 F.2d 291, C.A.2 1959, the Court dismissed the appeal in an action against the manufacturer of the earth mover in order to recover for machine operator’s death. In this case, the machine operator was killed while he was raising the scissor arms and bucket, and they had shut off the motor, and while doing this, he was actually getting out of cab when bucket fell causing him to be crushed between the scissor arms and the cab (Messina v. Clark Equipment 291). The Court dismissed the appeal because there was an absence of showing that there was indeed a hidden defect or concealed danger in earth mover (Messina v. Clark Equipment 291). It reasoned that under the New York law, a manufacturer has no duty to a remote user beyond the duty to keep the article of manufacture free from hidden defects or danger s (Messina v. Clark Equipment 291). Thus, if a remote user such as in this case, sues a manufacturer of an article for injuries suffered, he must allege and prove the existence of a latent defect or a danger not known to plaintiff or other users (Messina v. Clark Equipment 291). Citing the case of Campo v. Schofield, 301 N.Y. 468, 95 N.E.2d 802 (1950), the Court explained that, â€Å"If a manufacturer does everything necessary to make the machine function properly for the purpose for which it is designed, if the machine is without any latent defect, and if its functioning creates no danger or peril that is not known to the user, then the manufacturer has satisfied the law's demands.†