Nobody downloaded yet

Modern Financial Markets - Term Paper Example

Comments (0) Cite this document
The paper 'Modern Financial Markets' presents the advanced and sophisticated modern financial markets that provide the opportunity for international diversification. With the integration of the worldwide markets, the investors are now in a position to seek higher returns and lower the risk level…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94% of users find it useful
Modern Financial Markets
Read TextPreview

Extract of sample "Modern Financial Markets"

Download file to see previous pages There is no consistency in the empirical studies with regard to the performance advantages arising from international diversification. Various studies conducted by Buckley & Casson (1976), Caves (1982) and Rugman (1979) have drawn attention to the internationalization theory, highlighting that the process of international diversification does not improve performance rather the leveraging of the intangible assets of the firm bring in performance advantages. This calls for advanced ways of information co-ordination and processing in order to identify and take advantage of overseas opportunities. As per Kogut (1985b) the acquisition of this form of information co-ordination and processing requires significant investments and the gains arising from the international diversification vary across the firms (Chari et al., 2007).
An international business initiative can lower the overall risk of a firm owing to the benefits associated with international diversification (Madura, 2008, p.375). It enables the firms to make more returns on their innovation by way of accessing a number of markets and brings down the risks associated with research and development investments. Therefore, it can be inferred that international diversification provides the necessary incentives for innovative practices (Hitt et al., 2007, p.232).
This form of diversification enhances the market potential of the various product lines of the firms but this also gives rise to the complexities of managing a firm that is internationally diversified as well as product diversified. Research has shown that the gains from geographic and product diversification are higher in the case of media firms. It has also been seen that in the less developed economies the firms benefit more from product diversification as compared to the businesses in developed economies.
The international diversification offers exploitation and exploration benefits. As per Caves (1996) by way of internationalisation the firms can achieve economies of scope and scale. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Modern Financial Markets Term Paper Example | Topics and Well Written Essays - 2252 words - 1, n.d.)
Modern Financial Markets Term Paper Example | Topics and Well Written Essays - 2252 words - 1. Retrieved from
(Modern Financial Markets Term Paper Example | Topics and Well Written Essays - 2252 Words - 1)
Modern Financial Markets Term Paper Example | Topics and Well Written Essays - 2252 Words - 1.
“Modern Financial Markets Term Paper Example | Topics and Well Written Essays - 2252 Words - 1”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Modern Financial Markets

Financial Markets

...? Financial Markets Stock Track Table of Contents This paper discusses about Stocktrack portfolio. Different bonds, shares, options, mutual funds were invested and the result is being discussed. (Lessons learnt from 25 years of trading) Introduction $1,000,000 were invested in different stocks ranging from Bonds, shares, options, mutual funds, ETFs and Futures. Investment was made from January, 2011 to April, 2011.I have to invest these amounts through which is a simulation website for investment in stock exchanges. (Anon., n.d.) After performing analysis of different stocks I have identified the following: 1. Best performing investments during that period 2. Worst performing investments...
3 Pages(750 words)Assignment

Financial Markets

...? FINANCIAL MARKETS FINANCIAL MARKETS Financial markets are critical areas of money exchanges that guide financial directors and shareholders in making decisions. It is clear that the financial directors and shareholders can make critical economic decisions within the large and a complicated financial environment. Financial directors make decisions in such environments like the financial markets, financial institutions, taxation and legal instruments as well as the nature of the region's economy. In addition to that, the financial atmosphere both determines the existing monetary substitutes and the influences that come out from many decisions. Therefore, it is considerably important that shareholders and financial directors have... an...
6 Pages(1500 words)Assignment

Financial markets

...? FINANCIAL MARKETS Table of Contents Table of Contents 2 2 Answer a) 3 (i) 4 (ii) 4 (iii) 6 Reference 7 7 Answer a) Preparation of a balanced portfolio using broad market index funds is one of the most effective and simplest ways to prosper and diversify over the long term. The main underlying objective of an asset manager in offering a balanced portfolio to his clients is to increase the return from the investment made by the investor when all the elements of a portfolio is providing same risk or is to select a portfolio which would yield minimum risk when the return generated from the portfolio is constant. An asset manager while creating a portfolio diversifies the total investment...
3 Pages(750 words)Coursework

Role of high frequency trading in modern financial markets

...?Table of Contents Table of Contents Introduction 2 Modern financial Markets 3 Electronic Trading & Technological Shifts in Trading 5 High Frequency Trading 7 Strategies used by HFT firms 9 Interaction of Humans and Algorithms 10 Impact on the Liquidity, price, transaction costs & Efficiency 12 Financial instability 15 Contribution to Financial Markets 17 Criticism 17 Recent Moves by Regulators 20 Conclusion 21 Works Cited 22 Introduction Over the period of time, international financial markets have advanced to a level where rapid innovation has taken place. Financial Institutions have...
23 Pages(5750 words)Essay

Financial Markets

...RESEARCH PROPOSAL NO ARBITRAGE VALUATION OF ASIAN OPTIONS The management of financial assets is a tricky affair especially in the case ofa market that has a certain degree of friction attached to it. There is a certain degree of uncertainty as well as a certain amount of risk involved in the modeling of financial markets. Therefore, any modeling of financial assets is directed towards the reduction of the uncertainties & risks involved with the value of an asset or the pricing agreements that govern the variation of the determinants of financial assets' evaluation. Therefore, any such evaluation is performed so s to strike a perfect...
4 Pages(1000 words)Essay

Financial markets

...Financial Markets Table of contents Table of contents 2 Executive Summary 3 The Market View 5 The strategy 8 Conclusion 10 Reference 11 Executive Summary The global market has undergone a great transitional phase after the onset of financial crisis of 2008 in US. Australia being lucky enough did not face the extreme phase of economic recession which many others did. At that time the Australian government took certain steps to support its financial market but as the economy managed to come back on growth tracks, the government is trying to regain the control on economy. In early November 2009, Australian government raised...
6 Pages(1500 words)Essay

Financial Markets

...Financial Markets - Questions What are some key financial regulators? The term ‘financial regulators’ is used in order to indicate those organizations that supervise the financial services industry in the context of a country or within a greater area, for instance the European Union. One of the most known financial regulators is the Financial Services Authority (FSA) - the regulatory body of financial services in UK. Other organizations of such type are the following ones: a) the Financial Services Agency – in Japan, b) the ‘Autorité des marchés financiers’ – in France,...
4 Pages(1000 words)Essay

Financial markets

...Financial markets Financial markets Improvement of economic efficiency by financial markets Financial markets promote economic efficiency through the production of efficient capital allocation that increases production. The efficient direction of the flow of savings and investments facilitated by financial markets in the economy contribute to capital accumulation as well as goods and services production (Haliassos, 2013). Remarkably, the financial markets facilitate the connection between the well-developed financial...
3 Pages(750 words)Essay

Financial Markets

...). The financial market is crucial for the success of the businesses encompassed in a given economy. Every business utilizes specific financial instruments in their operations. The document below analyzes 1 PM PLC, a British company on the basis of its financial aspects. Discussion Numerous financial markets have cropped up in the modern world of business. The financial instruments that are in existence in the common modern markets can be broadly classified into equity and debt based financial instruments. The debt-based financial...
4 Pages(1000 words)Assignment

Globalisation in the Modern Financial Markets

...used to operate) and the creation of a series of severe problems to the local economies. Regarding the above mentioned, it seems that the most common corporate strategies in the modern financial markets are the mergers and the acquisitions of local companies from large multinational corporations. This means that if a company does not follow this rule will have to face difficulties regarding its survival in the market. In this paper the case of Rover MG is examined as an example of the corporate failure towards the above set target. Rover MG, a company that used to be a basic element of the UK manufacturing industry, was set under administration in 2005 after the failure...
25 Pages(6250 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Modern Financial Markets for FREE!

Contact Us