Asset Liability Management and Its Challenges for a Particular Host Nation - Research Proposal Example

International Studies: Fulbright Research Proposal Assignment Research Project Research is primarily conducted with the intention to increase the level of knowledge of individuals regarding a topic in any particular domain. This research will focus on the topic of Asset liability management and its challenges for a particular host nation included in the ITS 201 region. The field of study in this research project will be finance and the topic as mentioned above will be Asset liability management. The rationale for considering this subject area for the research is owing to the growing importance of the same in the area of business in the contemporary society. National Autonomous University of Mexico is considered as the institution for this research. The institution is located in Mexico City and is established back in the year 1910. Some of the factors, such as its reputation of being one of the finest research institutes in the world and its rich historical significance had encouraged the research to be conducted in this location. The institute is located in Mexico which is the host country for this research project (UNAM, 2013). The main intention of conducting this research is with the intention to gain a comprehensive knowledge regarding the dynamics associated with the concept of asset management liability. The research will also draw attention towards the emerging challenges of this practice in some of the business Institutions in the host nation of Mexico. Contextually, the research question will take the form “What are the present day dynamics of Asset Liability Management? What are challenges in this particular domain in the host nation?” The research will be conducted by following certain specific and relevant approaches that is expected to yield positive outcomes. Surveys, interviews and evaluation reports of the companies implementing asset liability management will be the compiled for this research. This approach will be inclined towards getting maximum information regarding the topic of the research. Notably, this research is conducted with the primary aim to attain certain noteworthy results for the subject area of Asset Liability Management. It has been observed that Asset Liability Management is one of the integral parts of business in contemporary world. It enables business units to have a structure process in managing its financial reports. The research will provide an in-depth understanding about the dynamics of Asset Liability Management. It will also provide a stepping stone and a source for those who want to develop their knowledge in the chosen topic in the host country of Mexico. This research is also expected to provide certain benefits towards accomplishing the goals of the Fulbright Scholar Program. This research project is anticipated to promote the critical relationship of exchanging education knowledge amid USA and the host nation i.e. Mexico. In this research projects the potential audience would be the university i.e. National Autonomous University of Mexico (Host nation). Information will be gathered from various sources about the topic through observations and several interviews which are expected to deliver appropriate answer to the research question and earn an approval for the research in the host country (University of Rochester, 2013; Fulbright Scholar Program, n.d.). Host Country The host country selected for this research project is Mexico. The country is emerging as one of the rapidly developing and densely populated nations of the world. However, selecting this nation for the research has certain other vital reasons. It has some noteworthy issues related to the topic of the research which further makes it eligible for conducting the research in this country. Problems Asset Liability Management (ALM) The concept of asset liability management has been depicted as a major issue in corporate houses in various nations of the world. This similar issue is also seen to be prevailing in the host country i.e. Mexico. Managing the risk that arises due to mismatch amid assets and liabilities is quite important in context of the business welfare. This aspect of business is largely been controlled by the concept of asset liability management. However, there are several issues and challenges associated with the concept of asset liability management in almost every nation of the world including Mexico (i.e. the host country). The first issue identified regarding the topic includes higher costs associated with the implementation of ALM. It has been observed that the process of ALM is proved to be costly both in terms of the time and monetary investment concerning with its implementation. Notably, implementing the practice of asset liability management required use of a number of management and IT tools which raises monetary investment (Rose & Hudgins, 2010). This particular research that is expected to be conducted in Mexico will emphasize on gaining an in-depth understanding regarding this limitation of the practice of asset liability management. Another issue that tends to associate with the practice of asset liability management is the fact that this technique is still in a trial and error stage where organization mostly intends to test its effectiveness in their operational framework and implement it permanently if they find it to be appropriate in the later stage. This prevents the widespread application of the same in the global business (Rose & Hudgins, 2010). Contextually, this research will intend to conduct a thorough analysis regarding this aspect and ensure that an in-depth understanding of current ALM status in Mexican business is duly gathered. Another issue that has been a driving force or an encouraging factor towards conducting this research is the fact that limited research had been conducted on this topic in Mexico. It has been observed that asset liability management has become one of those topics that have taken center stage in the global business arena. Expectedly, this technique will enable companies to coordinate and manage their assets and liabilities, thereby ensuring adequate return for them. In the recent years, the framework of asset liability management has become a dynamic framework for measuring, observing as well as managing the risk for companies in the global business arena. The technique of asset liability management works with structuring the balance sheet of business in such a manner that depicts the net earnings of business in a precise and accurate manner. These are some of the benefits that the technique of asset liability management offers to the businesses. However, the lack of research in this particular area in Mexico has restricted the widespread implementation of the ALM technique in the business of the host country (Rose & Hudgins, 2010). Hence, this research is expected to act as a good approach in the above mentioned aspect. ITS (Host Country) Connection with the Project There are certain specific points about the host nation that could prove to be relevant or encouraging factors for the research project to be conducted in that particular location. In geographical context, Mexico is not among the biggest region of the world. So, it is would be much easier to conduct the research in this place. Moreover, the climate of place is quite moderate in both summer and winter which is also an encouraging factor for the research. Historically, Mexico has a rich story to tell. The people in the country mostly relate with the European culture and speak Spanish as their native language. This has been continued from centuries ago. Also, the people of the country are deemed to be quite helpful and supporting to any good cause to the utmost extent. Hence, it is expected that the research will be favorably impacted by this feature of the country. The economy of Mexico is growing rapidly as compared to other developing nations of the world. The country has some of the largest companies of the world operating there. This aspect will be vital factor for the research as it will ensure validity and reliability of the same up to a greater extent. Apart from that there are also various small and medium size firms operating that will help the research to get widespread information regarding the topic. Politically, Mexico can be regarded as a good place to be conducting a research. The concerned authorities in the country are quite encouraging towards research studies. This is an encouraging aspect and thereby it is expected that required permissions for the research can be acquired easily. Furthermore, the cultural significance of the country would also be an important point to be discussed for this research. The culture of Mexico has been diverse in nature right from the olden days with a sense of nationalism among them. These are a concept of having strong identities of people based on the regions (Princeton University, 2013). These are some of the key features of the rich Mexican culture and undoubtedly the research study will be benefitted by this to a considerable extent Support of the Host Nation and Host Institutions for the Research The research will need certain help from the Mexican authorities and some approval from the university as well. The university will need to provide the approval for conducting the research and require firm commitment for any help in that aspect. Moreover, some of the basic help like arranging proper conveyance and a providing a guide to help in case of dealing with any language barrier must also be ensured. As far as the legal authorities are concerned, they should help the research with providing approval to visit some of the best companies in the host nation so that accurate and reliable information could be obtained for the topic of the research. References Fulbright Scholar Program. (n.d.). Program objectives. Retrieved from http://www.cies.org/us_scholars/us_awards/Review-Criteria.htm Princeton University. (2013) History of Mexico. Retrieved from http://www.princeton.edu/~achaney/tmve/wiki100k/docs/History_of_Mexico.html Rose, P. S., & Hudgins, S. C. (2010). Bank mgmt & financial services. New York: Tata McGraw-Hill Education. University of Rochester. (2013). Fulbright scholarship competition—samples. Retrieved from http://www.rochester.edu/college/studentfellowships/fulbright/essaysample2.html UNAM. (2013). About UNAM. Retrieved from http://www.unam.mx/index/en Read More