Islamic Perspective on the Financial Crisis

Islamic Perspective on the Financial Crisis

The Financial crisis can be characterised by unrestrained credit creation on the back of an out of control financial system that not only allows the creation of money and interest from nothing, but gambling on a mind-boggling scale. Wealth has been extracted out of the system in never before seen amounts, and will not be easily replaced. From an Islamic perspective this is entirely predictable and preventable. Yet the cure is requiring of the complete application of Islam within the governance structures set down within the Caliphate ruling system. A ruling system in which the economy is geared towards meeting the needs of the people, not faceless banking corporations.

The following principles of economy in Islam are presented, not as reactionary points of debate to be part of the patchwork of crisis and flawed response, but as an ideological alternative which has enjoyed many centuries of success for Muslims and non-Muslims alike.

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General Consideration in International Business

General Consideration in International Business

Each type and method of international business has its unique critical success factors, but some aspects cut across most situation. Financial and tax consideration will always be present, and trade in goods always generates question about transportation and insurance.

Credit risk, or nonpayment risk, is a significant factor in international business, as the ability of the creditor to obtain credit information is usually far more limited than is possible at home,. In addition, where a business accounts to its investors in its own currency but quotes its prices in the currency of its overseas customers. There is always the possibility of a drop in value of thoseother currencies in the period between quotation and payment. This currency risk gamble can also go in the exporter's favor, but most businesses seek to avoid such risks wherever possible, Strategies include payment in the home currency rather than in foreign currency, or the purchase of financial instruments that hedge (insure) against this risk for a fixed price. Currency risk cannot always be avoided, as some transactions (such as direct export consumer sales) rnust be denominated in local currency in order to attract customers, or in instances where the cost of hedging instruments is unreasonable given the transaction size.

Sometimes the selection of an international market or the form of the overseas business entity will be dictated by conditions beyond the control of the prospective trader, Still, it is rare to find oneself totally without options, and the fact that these options exist requires a business and legal strategy to make appropriate choices.

All of these risks make international business a profitable field for lawyers, and serve as a clear warning to international businesspersons. This section began with a simple definition that international business is any domestic business operation that includes an international element. Do not be tempted by this simplicity to conclude that international business is merely an extensior, of domestic business to an "over there" place. The businessperson who can best employ international business law to minimize risks and maximize opportunities stands the best chance of long-term success.

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General Consideration in International Business

General Consideration in International Business

Each type and method of international business has its unique critical success factors, but some aspects cut across most situation. Financial and tax consideration will always be present, and trade in goods always generates question about transportation and insurance.

Credit risk, or nonpayment risk, is a significant factor in international business, as the ability of the creditor to obtain credit information is usually far more limited than is possible at home,. In addition, where a business accounts to its investors in its own currency but quotes its prices in the currency of its overseas customers. There is always the possibility of a drop in value of thoseother currencies in the period between quotation and payment. This currency risk gamble can also go in the exporter's favor, but most businesses seek to avoid such risks wherever possible, Strategies include payment in the home currency rather than in foreign currency, or the purchase of financial instruments that hedge (insure) against this risk for a fixed price. Currency risk cannot always be avoided, as some transactions (such as direct export consumer sales) rnust be denominated in local currency in order to attract customers, or in instances where the cost of hedging instruments is unreasonable given the transaction size.

Sometimes the selection of an international market or the form of the overseas business entity will be dictated by conditions beyond the control of the prospective trader, Still, it is rare to find oneself totally without options, and the fact that these options exist requires a business and legal strategy to make appropriate choices.

All of these risks make international business a profitable field for lawyers, and serve as a clear warning to international businesspersons. This section began with a simple definition that international business is any domestic business operation that includes an international element. Do not be tempted by this simplicity to conclude that international business is merely an extensior, of domestic business to an "over there" place. The businessperson who can best employ international business law to minimize risks and maximize opportunities stands the best chance of long-term success.

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Business Ethics in Islam

Business Ethics in Islam

A person can earn money by two means; one is agriculture and the other is business. If business is not done according to the ethics then there will always be inflation and shortage of goods. As it can be seen in the case of many commodities like wheat, sugar etc. It is due to the stocking in, speculation and the selfishness of some businessmen. The government has also become a trader itself, while the shariah has stopped the Islamic government from trading.

As it can be seen that business is an important part of life, the Prophet Muhammad (P.B.U.H) said, "People get 9/10 of their daily bread by trade." Islam explains the concept of righteous trade by telling business ethics. If trade or any other thing is done against the morals and creed then this will lead to the bad end on the day of resurrection. Also by the law the person guilty of illegal business would end up no where. Islam emphasizes on the importance of the business ethics a lot. Allah says in the Quran, "they say that buying is also like interest but Allah has declared buying as permissible and interest as forbidden." And "When you buy or sell then make someone a witness of it." The Holy Prophet Muhammad (P.B.U.H) said, "If trade was not there then you would have become a burden on others." He also said that "A trader is the guardian of the means of daily bread and a keeper of the dignity of himself and other people." The Holy Prophet Muhammad (P.B.U.H) encouraged the trust worthy traders by these words, "A trustworthy and truthful merchant shall be with the prophets and the truthful and the martyrs and the righteous." "God shows mercy to a person who is kindly when he sells, when he buys and when he makes a claim" The prophet emphasized on the truthfulness and the righteousness of the businessmen a lot. He said that "Verily, merchants shall be raised up sinners on the day of resurrection, except he who fears God, and is good, and speaks the truth.

Ditulis oleh : Rashid Mateen Khan

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HISTORY OF CURRENCY IN THE VIEWS AL - Maqrizi

HISTORY OF CURRENCY IN THE VIEWS AL - Maqrizi

Is a historian jurist once during Abassiyah II , Throughout 79 years of age , he experienced four Caliphate era in Abassiyah II dynasty , which starts from the Caliph al - Mutawakkil I, al - Musta'in , al - Mu'tadid II and last al - Mustakfi II . Beside known as a jurist and history , Al - Maqrizi also known as an economist . Recognized expertise in the fields of economy , among other things , for its ability to explain about the money , functions of money and currency history . The modern Muslim scholars and economists continually refer to his book entitled " bi Kasyfil Ghummah Ighatsatul Ummah " . The book clearly explains all the information that relates to money and the history of its development in the Islamic world and the world is becoming trading partners .

Al Maqrizi writes two headers in the book is about the history of currency in the history of Islam and the currency in Egypt . In outlining the historical development of these currencies , also scientifically analyze the role and influence of money in the economy . Description of the function and role of money in the economy is very scientific , so it can be classed as part of a lesson in monetary economics lesson modern economy . What he laid in it , not much different from those described in monetary economics courses . Even if we implement in our economic life , it's hard necessarily monetary crisis will hit the Muslims . This is because one of the main causes of the financial crisis is a problem of modern interest (interest ) that the analysis of Al - Maqrizi eliminated altogether .

According to Al - Maqrizi person who first makes Dinar ( money of gold ) and dirham ( silver money ) was Prophet Adam . Falih bin Abir bin or bin Sam bin Noah Syalikh as. This view needs to obtain evidence from the hadiths or atsar trustworthy . This is because it smells like Israiliyyat opinion that is not necessarily true and is not necessarily wrong , but it should be displayed . Stages of currency in the history of Islam according to al - Maqrizi is as follows :

1 . At the time of the Prophet Muhammad . sent as an apostle , the Arabs generally use currency exchange rates and Dinar Parsi Roman in their muamalah . It is approved by the Prophet Muhammad . and finally established as a legitimate currency and applies to Muslims . Because it besides both are used as currency in circulation legally , any property zakat is obligatory upon both currencies .

2 . During the caliphate of Umar , he published Kisrah currency exchange rates ( Parsi ) by adding on one side phrase " thank God " and on the other side ' Laa ilaha ilallah " , and there is also the other side of the phrase ` ' Muhammad the Messenger of Allah " . At the time of Uthman ibn Affan also published exchange rates and the additional phrase " Allahu Akbar " .

3 . In the reign of Muawiya bin Abi Sofyan also published Dinar and Dirham . So is the government of Abdullah bin Zubeir in Mecca , he published his own coin currency that is round . even the shape of dirhams first time round .

4 . However, the monetary reform in the history of Islamic currency is the rule of Abdul Malik bin Marwan . At that time the Islamic government really has been freed from foreign currency ( Roman ) because they are self-published and Dinar coin . Thus ever since the Islamic countries have a currency that is independent and no longer refer to other foreign currencies .

There are a number of versions of history that drives Abdul Malik bin Marwan Islam issuing its own currency . One story was that one day he sent a letter to the Roman Emperor Justianus II in which write " Qul Huwallahu Munday " . It is damning the heart of the Roman Emperor that it threatens to Abdul Malik saying: " If you do not change , surely we will write in our dinar about something bad from your Prophet " . Faced with such threats , Abdul Malik after consulting with his assistants decided to self-publish Dirham and Dinar currency . Dinar and Dirham Abdul Malik mold is then disseminated in all his realm and into the original model of Islamic currency first .

BAHRUL ILMI N 11220098

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