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Jordan presented that if the efficient market hypotheses are viewed from an ideal perspective, then the asset prices published in the markets should be fully reflecting all the available information that shall be useful to the investors to foster their investment decisions in the stocks of corporations.
There are numerous factors that influence the flow of capital resources into host countries however within the current scope of this study emphasis will be placed on the specific influence that exchange rates with regards to the rise and fluctuations across the international capital market have on investment activities across the world.
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The main focus in the essay is on the effectiveness of the interest rate, as an instrument of monetary policy, conducted by the government. It is shown in the paper, that the decline or increase in interest not only affect the consumption levels and investment, interest rates also affect the inflation levels in an economy.
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The author states that the removal of restrictions on capital flows allowed banks to invest into cross border projects thus assuming more risks but also allowed them to indulge into banking practices which were more risky for the overall health of the financial institutions. The subprime mortgage market failure, however, forced many experts.
Of course everybody knows that ObamaCare is a health insurance sponsored by President Obama but many are still oblivious of what it is really about, why many politicians disagree about it and whether if it economically advantageous to Americans both as a country and individual.
Considering the controversy around pot, does the experiment entail that the government is making an addict out of us? The answer is no and the new state policy as contained in WSJ article actually makes economic sense. Experts actually have the opinion that the prohibition of drugs by the state is hinged more on speculation and fear mongering rather than empirical evidences.
It gives the “illusion” that the company is doing well, or profitable due to its high valuation but really, it is the same stock as before (with a lower price). The practice is not healthy to the economy but it is not illegal so many companies still use this “trick” for their stocks to be valued higher and have higher returns.
One important aspect about the intended gun control measure is, the administrators have begun to think about the use of military-style assault weapons for civilian use. I have no hesitation in supporting the measure in the prevailing societal conditions. I emphasize the word prevailing, because sermons from the political platforms by the politicians that believe in various ideologies are not going to produce any tangible results.
Even consumer spending registered 2% annual growth rate up from the previous estimated figure of 1.4%. There is an overall increase in business and manufacturing activities across wide ranging fields. Though it is too early to say whether much of the growth in economy is real or it is simply due to piling up of the goods by the companies in anticipation of likely buoyancy in the markets.
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The perfect competition market structure is a situation in which traders sell homogenous products, have no artificial entrants and exits to the market and producers are so many that they have no effect on market outcomes. No such industry exists in reality but the ideas and concepts are useful in analyzing how markets are supposed to work.
The article applied an aggregated bar graph to represent its information and the graph improves visualization f the effects of the tax cut that the government proposed. Its horizontal axis illustrates percentages of respective items relative to the nation’s gross domestic product while the horizontal axis represents a period in years and communicates anticipated changes in effects of the tax cut. ‘
The measures used by governments worldwide to secure the performance of the national economy are not standardized. Usually, these measures are chosen on the economic and social characteristics of the local market but also the needs of the economy in terms of financing. Tariffs and quotas are common measures for improving market efficiency. The effectiveness of these measures is not guaranteed.
The global financial crisis of 2007-08 affected many countries of the world. Even the world’s leading countries, like the USA, were struggling to cope with the sudden changes in market trends. This report discusses the impact of the global financial crisis in Qatar. The case study is reflected in comparison with the situation in other countries in the same region.
Differences in both the national spending and the current account imbalances are regarded as variables affecting both the short-run and the long-run deviances. The equilibrium of the real exchange rate may change for various reasons in the long run such as wealth effects and productivity effects (Rogoff 1996, pp. 647-653).
A deluge of statistical analysis and mathematical modeling in modern economics hides the real nature of its claims, particularly the concept of indifference that most economists rely on yet do very little about. Indifference means a consumer is not able to make a choice between two bundles because they come indifferent.
This essay primarily focuses on the evaluation of the effectiveness of the fiscal policy measures in the US in the recent times. It reveals the types of fiscal policies that were adopted in US to deal with the recession and economic slowdown. The essay discusses direct and indirect consequences of the shutdown of the government on growth.
China is one of the largest and powerful nations of the world economy. The economic growth of China has been one of the fastest growing in the world. Recently China has faced slowdown due to an economic slowdown in the world. Still, the country has achieved a GDP growth rate of more than 6 percent in the years following the crisis.
The central banks including the Federal Reserve have adopted aggressive credit lending policies in order to inject additional liquidity in the economy and stimulate economic growth. The huge credit offered in for business investments led to the expansion of the economies in the last decade which was eroded due to the global financial crisis.
The international community has made efforts to reverse this ugly trend by setting up The United Nations Framework Convention on Climate Change whose main mandate is to respond to climate change. The convention has set up The Associated Kyoto Protocol, a global agreement that categorizes countries by their level of industrialization and commits some countries to reduce their CGH emission rates.
The European Monetary Union is the agreement between the states of the European Union to adopt a common currency for the countries. The currency that has emerged from the agreement has been named the Euro. The rationale behind the formation of this association was the creation of a strong single European market.
The economic growth of a nation is actually the growth of the Gross National Product (GNP) of a country. This is the measurement that denotes the aggregate value of final goods and services produced by the nationals of a nation, either within their own domestic territory or across the international borders.
Macro and Micro Economics.
The subject matter of Economics is on explaining the world. That is, ways people behave, way in which most markets work and the way governments work in relation to the administration of scarce resources. The subject matter of Economics can also be said to be around production and distribution of output.
The UK government's response to the financial crisis that started in 2008 absolutely undermined credibility and transparency in the country. UK government intervention included injection of considerable financial capital into the private sector in exchange for maintaining a long-run equity stake in the organisations where capital was infused (Simpson 2009).
Nash equilibrium is a term used to describe a position where strategies taken by the players are at optimal point, given the moves taken by other players in the game. In Nash equilibrium, no industry or individual is in preference of a different choice. This means that each player chooses the best strategy given the approaches taken by the other players in the market (Kelly, 2003).
Since tomatoes have been destroyed, the supply of tomatoes has dropped significantly. The situation is even made worse by the fact that there was delayed planting. Because of reduction in supply, the supply curve will shift from S1 to S0 and the demand curve will remain unchanged.
The initial equilibrium is represented by the intersection of demand and supply curves, which are marked as D and S, where the initial price is Pe and the initial quantity is Qe. The final equilibrium is represented by the intersection of the new demand and supply curves, D1 and S1, where quantity and prices have risen to Q1 and P1, respectively.
However, emerging countries, which were considered vulnerable are exhibiting a remarkable resiliency, and growth seems to point to the pre-2008 breakout levels. In essence, the performance exhibited by the emerging countries is viewed as a significant engine of expansion in regard to the present global economy (Lachman 64).
Generally, in the economic analysis, there are various kinds of market structures that may operate in the economy depending on the number of sellers and the degree of market power that each seller has in the market. Therefore the market structures of an economy can be categorized under the following types.
For him, the real estate investors, the oil companies, and many companies were busy exploiting the rest of the society and there was need to protect the society against this. For many, the industrial revolution would eventually be strong enough to ensure that the benefits were actually well distributed in the society.
This paper identifies the unique properties of each of the markets and makes a conclusion on the two most viable for any investor seeking to undertake massive business expansion to an emerging market.
The insurance industry has greatly impacted and been impacted by the market. The industry has evolved and has managed to survive and flourish in a short period of time. The factors affecting the insurance market in a positive and negative manner are fully utilized so as to benefit from the opportunities and counter the risks that the industry faces.
Discussions trying to figure out what is the best: the policy of protectionism, which leads to the development of national industry, or free trade, which allows directly to compare national costs of production with international indicators, have become a subject of centuries-old dispute among economists and politicians.
Similarly, within the second video, the importance of public affairs, the meaning of words, and the means through which individuals within society are ultimately exhausted of many of the old advertising techniques and if so often been leveraged, the viewer is made aware of the fact that change is necessary in order to affect the new integration approach with a given product or service.
Most of the developed countries see the biggest chunk of their government’s expenditure go to three major sectors; defense, healthcare, and education. ‘Welfare state’ is the term coined to represent countries whose leadership aims at providing the masses with security, quality education, and healthcare facilities.
The paper deals with a case where a company, operating in a developing nation, would develop an export strategy to trade its products or services in a European country. The state of trading affairs has become highly complex after the emergence of globalization.
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The global financial crisis of 2007-08 has been the single most important matter of concern for the world economy in recent times. There has been a wide literature survey of the factors leading to the economic downturn that has become the most severe financial crisis, since the Great Depression. The reasons that led to the Recession have been discussed in detail.
This saw development of industries such as Saudi Arabia dairy industry which has claimed a big share of the both the domestic and gulf region market. After noting the need for a dairy industry, the Saudi Arabian government gave subsidies to local entrepreneurs to enable them invest in the dairy industry.
The U.S. has faced a new challenge in meeting the growing demand for natural gas products, particularly cooking gas, as the supply of natural gas products with the the introduction of new technology significally rised. The report by the EIA revealed that the demand for natural gas has been fueled by the fast increasing industrial energy demand
The Economic and Monetary Union is a set of policies, that stipulates some economic and monetary measures for the member countries as decided upon by a Governing Council and implemented by the European Central Bank. The main area of the working of the Union is the formulation of the larger monetary objectives of the Eurozone.
Auspak Avocados, trading as Avocados Export Company (AEC) is one of the biggest exporters of fresh quality avocados to the international business markets. The company operates its business in various regions of the world and might tend to expand its business in Netherlands due to its stronger financial condition and also for raising need of nutritious fruits in the nation.
Holihan (2008) explains that, in economics, the term commodity specifically entails goods. A commodity is a product that is a marketable item that is difficult to differentiate from other products of the same type that are from other manufacturers or producers. According to Holihan (2008), commodity products include both soft and hard primary goods.
The establishment of successful unions of states requires the adoption of policies that can secure these unions’ integration. Monetary union is one of these policies, as the example of USA reveals. However, before such plan is launched it is necessary to check whether the achievement of such integration is feasible.
The level of government spending increased dramatically after Greece joined the Eurozone and adopted the Euro as its official currency. The government spent increasing amounts on public sector salaries while GDP did not grow in proportion. Public borrowing was undertaken heavily but grossly underreported leading to a debt-to-GDP ratio.
Accordingly, free international trade facilitates quick movement of goods due to uniformity of trade standards and makes the economic environment predictable thus enabling businesses to engage in foreign direct investments (Frederking, 2010). After the passage of Tariff Act 1930, the protectionist policies led to decline in the level of trade thus forcing successive US governments to engage in aggressive efforts of opening markets in other parts of the world.
Microeconomics is concerned with the interaction between the individual buyers and the sellers and the factors which impact the choices the sellers and buyers make (OTTERMAN page 1-2). Microeconomics looks at the big picture hence the name micro which focuses on the national economy and there is provision of basic knowledge and how things are conducted in the business world.
The modern era of technology has both positive and negative facets. This means that though technology has made economic production faster and increased the scale, it has also led to a huge level of automation in the industry. The inequality in the distribution of income in the economy of the UK is increasing.
Several economists have tried to determine the effects of micro and macro-economic conditions on the happiness of workers. Employment begins with the availability of jobs or with an opportunity for an income generating activity. Inflation and unemployment in a particular country is believed to nurture unhappiness.
The major weakness of a country with weak intellectual protection is that other powerful nations can convert the ideas from other weaker nations as their and then they can modify them to come up with quality and valuable products that would later be sold to the originators of the ideas at better deal prices.
Nevertheless, the inconsistencies in trade policies also appear to work against the economy since it has increased the inflation rate every now and then. Therefore, it would be highly recommended for the Brazilian government to find a working trade policy that can spur economic growth while maintaining inflation rates as low as possible. Brazil is one of the South American economic giants.