A Critical Analysis of Bermudas Offshore Product and Legal Implications - Dissertation Example

Though the consequences suffered as a result of the financial recession are not peculiar with Bermuda alone, it has been noted that Bermuda has a special case in the quantum of losses that have been made over the years. This notwithstanding, many are those who have praised the level of opportunity that exists for the country in terms of Bermuda’s offshore product and international investments. As Bermuda is one of the world’s most recognized destinations and centers for offshore market trading, it would be noted series of prudent economic management that is tied around the use of Bermuda’s offshore product can serve as a driving vehicle to resurrect the country from its current state of stale economic growth.

By reference to the Bermuda offshore market, it will be noted that the larger financial market is what is being called to question. By financial market also, reference is being made to two major concepts of financial trading, which hare trades in commodities and securities at valuable costs (Bloomberg Law, 2005). Commodities may refer to tangible market products including precious metals and mineral resources of the nation. Securities on the other hand refer to intangible assets such as bonds and stocks.

Mostly, the prices of the said commodities and securities are not stable because the prices are determinant of the kind of demand and supply pulls that come with them. For instance the higher the demand for these commodities and securities, the higher the prices on the commodities and securities would be; especially if there are fewer inventories to supply. In financial markets, two forms of markets namely general and specialized markets may be identified. In the opinion of McCormick (2010), “general markets involve the trading of commodities and securities of different kinds to different people whiles the specialized market involves the trading of a particular type of commodity.

” Given that the research paper will emphasize the investment of the international financial market of Bermuda from the perspective of Bermuda’s offshore product, it could be said that the research is one that focuses on a specialized market. As an offshore market center, Bermuda serves as a “trade facility where there is the production of quality transactions for both national and international benefits” (Greenhouse, 2005). Due to this, it is always possible to either invest within or without Bermuda, using any of its several offshore products.