StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Nobody downloaded yet

International Money and Finance Balances - Coursework Example

Comments (0) Cite this document
Summary
The paper "International Money and Finance Balances" describes that current account deficit is not necessarily bad for the economy, but rather poses a number of substantive benefits. Regardless, it is vital that a country deters the incident of massive and persistent current account deficits…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
International Money and Finance Balances
Read TextPreview

Extract of sample "International Money and Finance Balances"

Download file to see previous pages The current account deficit is primarily the consequence of decisions made by the private sector. Since the current account deficit is considered temporary, it can easily be financed; hence there is no need to be overly concerned. This paper will examine the current account deficit, providing evidence of how the private sector is largely to blame and describing why it is mainly noting to worry about.
A critical explanation for the increase in the current account deficit in the US is the increasing levels of productivity, which resulted in a pronounced investment boom. The accelerating productivity inherent in US workers compared to that of workers in other countries is a prominent cause of the rise in the current account deficit. For instance, productivity in the US grew by at least 4.8% per year in the manufacturing sector (Warnock & Freund 2007, 149). In the year 1999, the US manufacturing sector experienced a 6.4% rise in productivity. This essentially meant that productivity grew quite substantially between the year 1980 and 1999. This surge in productivity resulted in an investment boom. Since the year 1991, gross private domestic investment as a share of the US GDP has increased quite substantially, achieving a post-war high of 18.3% in early years of the 21st century (de Mello, Padoan & Rousová 2011, 18). This increased investment rate was primarily in response to the dramatic changes encountered in the US technological climate, which underpinned the increase in productivity. This is primarily because technological advances have allowed a vast majority of US firms to project productivity to increase momentously. Increased growth in productivity increased the economy’s capacity to produce products and services. The rise in plausible supply translates, over time, into a rise in the real quantity of products and services produced by the economy. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(International Money & Finance Coursework Example | Topics and Well Written Essays - 1750 words, n.d.)
International Money & Finance Coursework Example | Topics and Well Written Essays - 1750 words. https://studentshare.org/finance-accounting/1798322-international-money-finance
(International Money & Finance Coursework Example | Topics and Well Written Essays - 1750 Words)
International Money & Finance Coursework Example | Topics and Well Written Essays - 1750 Words. https://studentshare.org/finance-accounting/1798322-international-money-finance.
“International Money & Finance Coursework Example | Topics and Well Written Essays - 1750 Words”. https://studentshare.org/finance-accounting/1798322-international-money-finance.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF International Money and Finance Balances

TUI Travel International Money and Finance

...International Money and Finance Balances... International Money and Finance Balances... International Money and Finance Introduction: A company having its operations across the borders can be said to be involved in international financial dealings. This naturally involves several business risks and returns that are spread across the global business world. Foreign exchange is the process of trading of money across different countries in the world (Melvin & Norrbin, 2012, p.1). Thus considering a company operating at an international level, there are several outcomes of the company that are significant for understanding in order to realize the status of the company as well as consider measures accordingly to sustain the success of the company. These...
10 Pages(2500 words)Essay

International Money and Finance (Final stage 3)

...International Money and Finance Balances... International Money and Finance Balances... Risk >> United s Economic Analysis - Weak Recovery Story Continues United s - Economic Activity - 31 May BMI View: A poor real GDP reading for Q111 has forced a downward revision in our US real GDP growth forecast for 2011 to 2.6% from 2.9%. We also see fewer rate hikes in 2012. Our overall view that the US recovery will be relatively weak and erratic is unchanged. Our US real GDP growth forecast has been revised down to 2.6% from 2.9% for 2011. It has been revised up slightly to 3.0% from 2.9% for 2012. This is the second consecutive downgrade in our US forecast, which came into the year at 3.1%. We are clearly less optimistic now than we were even a few...
10 Pages(2500 words)Essay

International Money and Finance (Final stage 3)

...International Money and Finance Balances... International Money and Finance Balances... Analyze Ashtead Group Plc on exchange rate risk, country and political risk. Company Introduction Ashtead Group has been a major provider of rental equipment to the US and the UK. It is the third largest equipment rental company with 104 locations over Britain, functioning in a ripe market. The UK business of the Ashtead Group is run under the name ‘A-Plant’ renting equipment to industrial and construction companies. With strength of 104 profit centres, the UK market is ripe with rental business fulfilling 80% of the market needs. It is also the leading company under the name ‘Sunbelt’ in the US with strength of 358 facilities, functioning primarily in the...
4 Pages(1000 words)Essay

International Finance

...International Money and Finance Balances... International Money and Finance Balances... The weighted average cost of the Vagabond plc, before consideration of the project, is calculated as follows. Market Value of Equity Type of instrument Total Number of Shares Current Market Value Market Value of equity (?) Cost of Equity (ke) Equity Shares 2,000,000,000 0.36 720,000,000 9.50% Calculation of Cost of Equity (ke)     Table 1     Ke = Rf + (Rm-Rf) x Beta   Ke 9.50%       Where Rf = 5 Rm= 10 Beta=0.9 Market value of Debt Type of instrument Current Market Value (?) Cost of Debt (kd) Bank Overdraft 169,800,000 6% Redeemable bond 310,200,000 3.52% Calculation of Cost of debt (kd)  Table 2 Current Market Value (94) Coupon Payment   Dec-11 4 Dec-12 4...
14 Pages(3500 words)Coursework

Macroeconomics: Money and Finance

...International Money and Finance Balances... Macroeconomics: Money and Finance Lecturer: Describe some of the structural reasons of European labour markets that keep European unemployment rates high. Please explain the possible reasons briefly. Structural unemployment involves an economic condition where people who are willing to work can not find a job due changes in economic demand (Tucker, 2011). Those changes may be attributed to technological, demographic and industrialization changes respectively (Tucker, 2011). This may further force on organisation to incur huge capital expenditure as it tries to retrain its employees (Tucker, 2011). In above connection, structural unemployment is long rather than short term economic condition....
3 Pages(750 words)Essay

Money,Banking&Finance

...International Money and Finance Balances... International Money and Finance Balances... Money, Banking & Finance Contents Contents 2 Introduction 3 Interest Rates 3 Yield Curve 4 Risk and Its effects 6 Pure Expectation Hypothesis 7 Liquidity preference theory 8 Preferred Habitat Hypothesis 8 Conclusion 9 References 10 Introduction Rates of interest are considered to be the price that is paid for a period of time for the usage of a sum of money. Thus, for the determination of the value of a bond for a period of time, the rate of interest is a useful metric that would help in determination of the present value and the future value of the bond. Interest rate is generally determined from the market rates which would be captured in the valuation of a...
7 Pages(1750 words)Essay

International Money and Finance

...International Money and Finance Balances... International Money and Finance Balances... OF CONTENTS COMPANY INTRODUCTION..........................................................2 2. EXCHANGE RATE RISK.................................................................3 3. ASHTEAD GROUP’S CURRENT STRATEGY.....................................4 4. COUNTRY RISK–U.S.....................................................................5 5. POLITICAL RISK–U.S...................................................................5 6. COUNTRY RISK–U.K.....................................................................6 7. POLITICAL RISK–U.K...................................................................6 8. RECOMMENDATIONS–INTERNATIONAL CORPORATE ...
4 Pages(1000 words)Essay

International money and finance

...International Money and Finance Balances... International Money and Finance Balances... Dolphin: Risk analysis Risk management Brewin Dolphin holds a prominent position among various renowned financial planning and investment management companies in the United Kingdom (Brewin Dolphin, 2013). Being an investment firm, the company requires operating in multiple currencies and as a result it is susceptible to certain systematic and unsystematic risks such as market risk, political risk and country risk. Market risk primarily comprises interest risk and foreign exchange risk (Clare and Gang, 2010). It was indicated by authors such as Clare and Gang (2010) and Busse and Hefeker (2007) that these risks have considerable amount of unfavourable impact on ...
6 Pages(1500 words)Essay

International Money and Finance

...International Money and Finance Balances... International Money and Finance Balances... Finance and Business International Finance and Business Introduction International finance is one of the fields of finance and economics which has been receiving numerous changes. In this 21st century, the financial market has become global. This is because international finance is encountering numerous changes and developments that lead to numerous implications on a broader perspective as discussed below. The monetary standards have changed over time due to influence of different factors in the global market. The terms and balance of payment normally affect imports and exports that are transacted by different nations. Hence, the evolution and changes in the...
9 Pages(2250 words)Case Study

Corporate Finance: Stable Money Makers

...International Money and Finance Balances... Money Makers Grade (May 14, Corporate Finance: Stable Money Makers The capital investment thatcould help Peggy with her Alpaca business is investing in fleece processing machinery. The Alpacas provides returns to their owners in a variety of ways. First, an owner of Alpacas can simply rear and breed them for selling as his/her core business. Secondly, the owner of Alpacas can rear them for the purpose of shearing their raw fleece and selling it into the fashion industry market, where the commodity is in high demand and earns premium-rate profit margins (Sugarloaf Alpaca Company, 2015). Nevertheless, there is an even more advantageous model of earning even higher profit margins. Rather than selling...
2 Pages(500 words)Essay
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 Coursework on topic International Money and Finance Balances for FREE!

Contact Us