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There are two approach to implement and maintain corporate governance. The first approach is rules based approach and second approach is principles based approach to corporate governance. The rule based approach relies upon code of conduct that is framed into laws and regulations to be followed to implement corporate governance. In contrast to it, principles based approach focuses upon good spirit and morally high principles that guide the corporate governance. It is based on the premise that conditions and situation change with time and one set of rule, cannot be good for all the companies and for all the time. So, rule should be framed in the form of principles, rather laws and regulations.

Besides, rules based approach has provisions for penalties if entities defer from the set rules. In contrast to it, principles based approach does not pursue the penalty driven approach to implement corporate governance.

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American Depository receipts (ADR) are the means to raise funds in the US capital market by the overseas companies. It has different levels. The level 1 ADR is issued with least disclosures and compliances to be followed by the companies who are issuing ADR. To issue level 1 ADR, the company needs to file F-6 registration statement and its inherent information. Afterward, the company is able to issue level 1 ADR. In contrast to it, Level 2 ADR can be issued by more disclosures, more compliances and more requirements to be filled by Securities and Exchange Commission, USA. It is the F-6 registration statement, Form 20-F created by SEC and final statements of the company on annual basis. These statements must be prepared in accordance with the GAAP or any other international accounting standard so that it brings out all necessary disclosures.

Further, level 1 ADR can only be sold or traded on OTC (over the counter basis), but level 2 ADR can be listed on stock exchanges in the USA.

  Sarbanes - Oxley Act is applied upon the company who issues level 2 ADR, but the same is not mandatory for companies, issuing level 1 ADR.

2 

An inquiry into the nature and causes causes of wealth nation was first published on 9th March 1776. It is also known as the "wealth of the nations" and it was written by Smith. In this book, he described the mercantilism that was coming to an end and the need of the fulfilment of self-interest of our individual, that in return leads to social benefit.

He introduced the concept of invisible hand, which means a type of market force that is not observable but helps the supply and demand of goods to attain the equilibirum automatically. This, facilitates prosperity and stability through the mechanism of market. Smith did not facilitated the role of government in intervening in the market.

The publishing of this book marked the birth of economics as well as the modern capitalism and his idea of invisible hand continues to be a powerful force in the current scenerio.