Financial markets and sovereign debt Essay Example | Topics and Well Written Essays - 1750 words

Financial markets and sovereign debt - Essay Example Among securities that are traded in the financial markets are bonds, stock as well as commodity materials such as the agricultural products and precious metals. It therefore adopts the notion of a common market in that it presents a platform in which interested buyers meets with interested sellers as well as the commodities on bargain. In a financial market, parties participating are government agencies, individual persons, firms as well as households. This is a common feature with a market economy where the government relies primarily on the structures of buyers as well as sellers in allocation of resources as contrasted to non-market or commodity economies. Besides, the effects vary depending on the stage of development of an economy where in the emerging economies; the governments largely take the responsibility in financial aid and financial management and participation especially for the reason of such eventual occurrences as the sovereign risks (Aizenman, Jinjarak and Park, 201 3, para 1-5; Herrero, 2005, p. 5). Discussion Financial markets and the global economy Basic responsibilities of financial markets in finance include capital summation, risk transfers, discovery of prices, global participation in integrating financial markets as well as liquidity transfers (‘International Monetary Fund’, 2010, p. 1). ... 1-4). The financial markets also brings together borrowers and lenders where in money markets, firms borrow finances on short term while capital markets provide long term based funding to corporations for expansion purposes.The following illustration is on the interactions that are engaged in financial markets as well as the parties to the transactions. Lenders Financial intermediaries Financial markets Borrowers Individuals as well as companies Banks, insurance firms, pension funds as well as mutual funds Interbank Stock Exchange, money Markets, Bond Markets as well as Foreign Exchange Individuals, Companies, Central Governments, Municipalities as well as Public Corporations The relationship depicted therefore shows that borrowers, lenders and financial intermediaries have a common link through the financial markets where stock exchange, bonds as well as foreign currencies are traded. It is worth noting that the interaction of these parties at the international scene depicts the act ual picture of the global economy. Market efficiency is a critical concept that must be employed in the analysis of financial markets as well as the global economy and it involves three categories: strong, semi-strong as well as the weak form of efficiencies. However, the inefficiencies notable in financial markets result from ‘frictions’ which broadly represents asymmetries in information and taxes as well as costs of transactions. Value and liquidity in the transactions are therefore basic features in the consideration of efficiencies in financial markets. The concept of efficiency is very critical in investment decisions by investors within a country besides guiding on such decisions as arbitration and speculation. Information influences the behavior of

International Business Theories. Outward Foreign Direct Investment Essay

International Business Theories. Outward Foreign Direct Investment from China - Essay Example Introduction It is said that no country is an island. The fact behind this saying is made evident in several theories including economic theories. For instance it is out of this realization that several countries and regions of this world are forming organizations and unions that seek to bridge the borders that hinder the easy flow of investment from one country to the other; allowing that investors of other nations have free access to do business and trade in other countries. A number of such organizations and associations of the world that foster free movement of investment for economic purposes can be mentioned. Some of these include the Gulf Countries Cooperation, Middle East and North African Organization, European Union and Economic Community of West African States. The freedom for other foreigners and foreign businesses to do business and invest in other countries bring to fore the discussion on foreign investment. Foreign investment comes in different forms, depending on what is involved in the investment. The differences in investment packages has over the years resulted in economic terms such as foreign indirect investment, outward foreign direct investment and inward foreign direct investment. Today, economic scholars seem more comfortable, discussing the phenomenon of flow of investment from one country to another as just foreign direct investment. ... To this end, Graham and Spaulding (2005) explain that â€Å"the definition has been broadened to include the acquisition of a lasting management interest in a company or enterprise outside the investing firm’s home country.† There is no denying the fact that China and India remain some of the world’s largest attracters of foreign direct investment; specifically outward foreign direct investment. This paper is therefore dedicated to researching into the general trend associated with foreign direct investment from those two countries in relation to how international business theories adequately explain the reasons for outwards foreign direct investment in those two countries. Overview of outward Foreign Direct Investment from China By definition, China is one of the most celebrated countries that enjoy â€Å"a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor† ( Economic Watch, 2011). Simply put, China enjoys massive foreign direct investment. Without saying the least, recent survey conducted by the United Nations has proved that investors rank China as the world’s first most important destinations for foreign direct investment over the 2010 to 2012 period (Asia Briefing, 2011). The implication of this top spot is that China enjoys and benefits from outward foreign direct investment like no other nation in the world. Indeed the success of China as the top ranked dates far back as Shaukat and Wei (2005) notes that â€Å"China is by far the largest recipient, and in 2004 surpassed the USA as host destination. It has consequently

The cost of shortselling (finance) Essay Example | Topics and Well Written Essays - 3000 words

The cost of shortselling (finance) - Essay Example procedures are discussed in depth to show that the chances of making a profit through short selling are as high as incurring a loss due to this activity. It all depends on how accurately an operator is able to predict the future market movements of stocks that are sold short. Mutual Funds hold largest number of stocks and are the most active operators in stock market. So, some analysts feel that if the additional costs related exclusively to short selling are added to the average cost of transactions undertaken by Mutual Funds, a correct value of the costs of short selling can be obtained. But the reasons why this approach would never give a true indication of short selling costs have been explained in a cogent manner. Finally, the assignment ends with a strong argument against branding short sellers as precursors of misfortune. â€Å"Short selling† is a very common term in stock exchanges. In simple terms, if a seller sells stocks which are not owned by them, then they are selling it short. This is possible if the seller borrows those stocks from a broker for a limited period and would return those stocks later. In order to do this, the short seller must have an account with the broker. That account could be either cash account or margin account. A cash account requires all transactions to be settled in cash while in a margin account the broker comes forward with finance or securities, as the case may be, to fulfill temporary requirements of the investor. The investor has to; of course, provide collateral securities for all the shares that they borrow. One of the most pertinent costs of short selling is the interest foregone on the securities that are presented as collateral to the broker. A short seller undertakes these transactions because they have a hunch that the price of securities would go down in future. So when they would buy those stocks from open market for returning to the broker they would be able to do so at a lower price than at which they had

Should Military Recruiters be Allowed in High Schools Thesis

Should Military Recruiters be Allowed in High Schools - Thesis Example Students must be open to all kind of possibilities and military is one of them. Military recruiters’ presence at campus is to inform, educate, motivate and assist young students for an honorable, potentially lucrative and competitive career. According to Weekly Reader Corporation (2006) almost 100,000 teenagers joined United States military in 2004. Approximately 57 percent of all army, Marine, Navy and Air Force recruits are between 17 to 19 years of age. These statistics points towards influence military recruiters have on high school students when it comes to deciding about volunteering for army. According to a clause of No Child Left behind Act 2002, military recruiters are allowed to visit high schools twice a year and schools must provide students’ contact information with recruiters. Military recruiters should be allowed in high schools due to the fact that not only military entirely depend on recruiters to enroll educated and young people to defend the country but also the young students should be aware of all options for making informed and beneficial career decision in uncertain economic conditions and increasing competitiveness for higher education. Military recruiters should be allowed in high schools because army and our defense system depend on the contributions of these young people. According to U.S. Recruiting Command, since the abolition of draft in 1973, United States has an all-volunteer military. It implies that army is completely dependent on recruiters for recruiting well-educated, properly trained and sophisticated people to defend us on war fronts and save our sovereignty (S. Douglas Smith as cited in Herbert, 2006) Parents and students must not feel forced to join military. It is a fact that every employer search for the best to serve and military is no exception. By visiting high school campus, military recruiters not only serve the nation as a whole but also broaden the horizon for teenagers. Their

Identity Theft Statutes Assignment Example | Topics and Well Written Essays - 2000 words

Identity Theft Statutes - Assignment Example The statute includes the names of the contracting parties as well as the terms and conditions contract requirements (Catherine 2004, 48). Therefore, the status of fraud serves to protect the parties to the contract from deception by the other party if in case one of them decides to avoid performing either part or all of their liabilities in the agreement (Miller, Harvey & Parry 1998, p.364). Therefore, it is essential for the parties to ensure they include statues of frauds in their contract to ensure that effective discharge of their duties s a means of improving business performances and reduce the legal cases arising from the failure of contract performance. This report will explore the purpose of statutes of frauds and what it entails. It also explores the impact the statutes of fraud will have in a contract and when the parties to the contract may find it essential to establish statutes of frauds. In addition, the study will focus on conditions under which the statute of fraud may be ignored during the implementation of the contract. Finally, it will focus on the effects of court cases in the situation where the parties had signed statutes of contract by studying the court cases in which it was applied. The main significance of the statutes of fraud is to ensure there is evidence of the existence of a contract between parties and assure them of the performance of the contract (Catherine 2004, 48). Whereas the statutes were established to reduce the cases of deception among the contracting parties and provide evidence to the court when solving disputes the statutes does not cover most of the contracts especially the contracts of services which are accomplished in less than a year (James 2003, p. 18). The controversy in this requirement is that most of the contracts which do not fall within the statutes are the most rampant in day-to-day life.  

Leadership Interview Paper Essay Example | Topics and Well Written Essays - 1250 words

Leadership Interview Paper - Essay Example or the final round of the interview was the main part of the selection process as it aimed to analyze the leadership quality of the interviewee and evaluate his leadership knowledge implementation skill. Leadership is a quality of a human being by which he or she can effectively control a group of people or situation. It is a tough ability which affects the behavior of any human being for accomplishing a mission. It is the quality to influence or motivate single or a group of people to go ahead towards the assigned goal and achieve the goal. All these can be summarized as that, a leader is simply someone who has the ability to create a path and lead others to follow it. So without any experience no one can be a leader i.e. he should have comparatively better knowledge from others i.e. the follower then only he can lead a group of people. A leader needs to have some essential previous experiences to become a leader and that would be very helpful to develop the leadership style of a person. One is working in a team as well as leading the team by the knowledge and skills and proper understanding of group dynamics. To lead a team or group of people who are involved in similar kind of work, the person or group leader needs to have better knowledge of and expertise on the particular work than other team members. It is only then that he or she can guide or lead the team and can motivate the members to go forward to achieve the assigned goal effectively. Second important experience that a leader needs to have is protesting against an unfaithful and unethical happening and encouraging his followers to do that as well. If a person is guiding a group of people the person can be called a successful leader only when his or her followers follow his positive or negative path of direction to achieve the goal. Positive path refers to the working of a group together to achieve a set target which can be either a company target or, a long term project or it can even be a

Pearson Education Company and Its External Factors Essay

Pearson Education Company and Its External Factors - Essay Example Like any other organization, Pearson Education does not exist in a vacuum but operates in an environment that is characterized by stiff competition from other rival competitors like McGraw-Hill, Reed Elserivier, and Thomson among others. In this context, STEEPLE analysis mainly takes into consideration the environmental factors that may impact on the operations of business. According to information obtained online, there are mainly seven factors that affect the operations of business and these are social, technological, economic, environmental, political, legal and ethical. (See appendix 1). It is very important for any business to diagnose the external environment in which it is operating in order to gain a competitive advantage over the other competitors. An organization ought to strategically streamline its operations so as to be able to remain viable and profitable while at the same time ensuring that its operations conform to the expectations of the customers. Whilst there are v arious external factors, technological as well as economic factors form the basis of this study as going to be analyzed in detail. On the other hand, a SWOT analysis defines the relationship between the internal and external environmental factors in the appraisals in strategic analysis of the operations of a business (Robinson 1997). Basically, SWOT stands for strengths, weaknesses which represent the internal environment of the firm while opportunities and threats are external environmental factors. It is primarily concerned with analyzing the key factors of the environment and the fundamental internal strengths and weaknesses of the organization which will help dictate the strategies appropriate to the firm. The internal factors include the operations of the employees at Pearson Education while the external factors are mainly concerned with technological developments as well as competition from the other rival players.