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Finance it Is With Great Pleasure and

¶ … Finance It is with great pleasure and enthusiasm I apply for acceptance into the PhD program at your university. My enthusiasm for finance though not immediately recognized as a youth has steadily grown and developed during my career as a student. In a world that is ever evolving and changing, I feel it is essential that financial students and professionals of the future take into consideration the impacts technology and the global business environment will have on the field of finance. My interests in pursuing my professional degree align with this thought process. My research experience thus far has created a strong desire to learn more about global finance. Thus far my research foundation has included examining the strength and creditability of various enterprises and industries as well as summarizing market trends and general financial information. My goal in pursuing higher education in finance includes exploring what strengths and best practices small to medium financial enterprises must adopt to succeed and remain competitive in an increasingly global or international business environment. More and more organizations are relying on international relationships to conduct business in. Technology has changed the way financial enterprises conduct business and communicate with one another. I am eager to pursue analysis of the financial industry in light of these changes to determine what impact technology has had on the industry and what impact it will continue to have on the industry and nature of services global financial firms have on consumers. My skills base currently includes exceptional knowledge in finance and economics, exceptional presentational and team player ability complemented by a collaborative demeanor and the detail oriented, ambitious personality required of a professional student. Thus far my work experienced includes assisting the finance professor at Fisher College of Business, a position that provided great experience in the areas of analysis, market competition and financial review. I feel this foundation will provide me the knowledge base I need to excel in my professional pursuit of finance. My love of finance was not always as clear to me as it is today. During my youth my family encouraged me to pursue finance and follow in their footsteps. My parents both worked in finance, my father as Vice President of a branch of the Chinese Central Bank for eight years; my mother as President of a branch of the Bank of China. Many of my relatives also work…

Pages: 3  |  Admission Essay  |  Style: n/a  |  Sources: 0


Attend the University of Toronto to Complete

¶ … attend the University of Toronto to complete my graduate program in Mathematical Finance for a number of reasons. I have always been interested in the application of mathematics in the field of finance. While I majored in Mathematics at the University of California, Los Angeles, I added to my finance expertise by taking statistical economic and finance courses as a bridge between mathematics and economics. I would like to continue my education at the University of Toronto because the school is well-known for its excellence in research and emphasis on the practical application of mathematics in finance. I feel the program would provide exactly what I need for a successful career in finance, a great education, and the experience of theory in practice. A bring extensive experience to my desire to attend the University of Toronto. I work as a math tutor at UCLA for calculus level courses. In addition, I……

Pages: 1  |  Admission Essay  |  Style: n/a  |  Sources: 0


Banking Crisis the Global Financial Crisis Began

Banking Crisis The global financial crisis began as a banking crisis in the United States and spread quickly throughout the world. A crisis of this proportion does not gestate quickly or easily -- a large number of factors and substantial time are required to create this type of economic mess. Among the lead factors were deregulation of banking sectors around the world, interest rate policy at the Federal Reserve, and the rampant securitization of mortgage debt. The banking crisis is, at its heart, a credit crisis. Banks no longer have the capability to lend as freely as they once did. As a result, firms and individuals have a more difficult time getting the credit they need for capital investments, operating lines of credit or mortgages. This results in a negative reinforcing cycle of economic contraction. Deregulation of banking sectors in the U.S., Europe and elsewhere allowed banks to hold much more risk, lend out more of their money and lend to riskier borrowers. When the housing bubble burst and mortgage defaults began to accelerate rapidly, this excessive risk resulted in bank failures and near failures. Interest rate policy at the Federal Reserve was another key antecedent. The dot-com collapse in 2000 led the U.S. Federal Reserve to lower interest rates as a means of increasing the money supply. As a result, U.S. banks were flush with cash to invest. This, combined with lack of oversight, led to increased lending to subprime borrowers, and even competition to attract such borrowers. This increased the risk that banks held. Without the increase in money supply, deregulation alone could not have brought about such catastrophic consequences (Knowledge @ Wharton, 2009). Lastly, the crisis was spread throughout the world by the securitization of mortgage debt. High-grade mortgages have been securitized for decades by Fannie Mae and Freddie Mac, but during the 2000s mortgage-backed securities became in vogue. These complex instruments were an attempt to diversify away the debt. Financial institutions and national governments around the world latched onto these securities, misled by claims of AAA debt ratings. When the high rate of default caused the value of these mortgage-backed securities to collapse, it created substantial liabilities at financial institutions worldwide, leading to a global banking crisis. Compounding the situation, when U.S. financial institutions began to fail, all of the assets that they backed became of questionable value (or valueless). This was the primary impact on…

Pages: 3  |  Essay  |  Style: Harvard  |  Sources: 4


United States From Nigeria in

During my years of study and in the Navy for example I have displayed motivation and teamwork skills. I have dedicated my time to working with my fellow students and colleagues, and have worked on maintaining good interpersonal skills at all times. Furthermore my participation in activities such as the rag, a community charity event at our college, as well as my security and front desk work have helped me develop the necessary interpersonal skills to serve effectively in an assistantship. My plans for the future and for my career are to enter the financial field. My studies and my professional ventures have revealed to me that this is where my interest truly lies. Furthermore I believe I have what it requires to succeed in this extremely competitive field. Setbacks such as the fact that my parents are immigrants without sufficient funds to pay for my education, and my discharge from the Navy, served only to add to my determination for success. I see these setbacks not as problems or indeed as setbacks in themselves, but rather as challenges that can be overcome on the path to achievement. It is this motivation and determination that I will bring to a graduate program in the financial field. I would therefore like to focus my MBA studies on finance. With this degree I will be able to boost my career, while also serving as an asset to my college. My energy and enthusiasm will serve to not only make a success of my studies, but also to bring the best of quality to any assistantships or community programs on which I serve. Finally, I believe that my inherent qualities will serve to carry me to achievement in whichever direction I choose. Personally, I believe the most fulfilling career that I could pursue lies in the finance and banking field. Thank you for taking the time to consider my application. I look forward to receiving your reply, and hope that my comments will be……

Pages: 2  |  Term Paper  |  Style: n/a  |  Sources: 0


History of Economic Thought

¶ … John Maynard Keynes's contributions to economic thought. John Maynard Keynes is considered to be one of the most prominent figures in economic thought of the 20th century. Keynes's ideas had a deep influence on economics and political theory as well as on theory of government fiscal policies. Keynes supported idea of economic intervention of government, as to his…

Pages: 8  |  Term Paper  |  Style: MLA  |  Sources: 12


Consumer Acceptance of Online Banking in the

¶ … Consumer Acceptance of Online Banking in the Sultanate of Oman The research will center on the customer acceptance of online banking services within the Sultanate of Oman. Before writing the actual research report however, it is necessary to formulate a research proposal, which is organized under the following headings: Introduction, Scope, Background, Theoretical Framework, Methodology, Research Layout, Impediments,…

Pages: 17  |  Research Proposal  |  Style: n/a  |  Sources: 0


Role of Private Investment on Economic Development in Iraq

Role of Private Investment on Economic Development in Iraq Private investment in developing countries An overview on early Empirical studies In 1980s, the developing countries encountered some increment in their development behaviours with debt crisis, which affected the formation of capital. Concurrently, the affected countries were transforming from the post-era to a structural reform efforts. In mid 1980s, the developing…

Pages: 40  |  "Literature Review" Chapter  |  Style: n/a  |  Sources: 45


Economic Recession on Customer Loyalty

¶ … Economic Recession on Customer Loyalty to Banks in the United Kingdom The global economic recession has had a number of various effects on economics in the United Kingdom, including how people in the UK conduct their banking. While it is impossible to argue that the economic recession has been positive for consumers, it is undeniable that the recession…

Pages: 11  |  Research Proposal  |  Style: n/a  |  Sources: 30


Discrepancies Between Britain and Japan in Governing the Economy

Political Science Discrepancies between Britain and Japan in Governing the Economy According to Kesselman, the success of a government will be judged primarily by how well it can govern the economy (i.e., its "economic performance") in providing for its citizens. In a post 9-11 world, do you believe that such a statement is still accurate? Why or why not? The…

Pages: 5  |  Term Paper  |  Style: n/a  |  Sources: 2


Services Sector

Services sector comprises vast groups of industries that cater to human needs in all spheres of existence. In this paper, we shall deal with the banking sector which falls under the field of services. The Banking sector relates to the financial transaction requirements of the people and nations and even international monetary transactions. Nature of Banking Services The financial service…

Pages: 13  |  Term Paper  |  Style: Harvard  |  Sources: 13


European Economic History From 1800's Until 1945

¶ … existence of the industrial revolution. The industrial revolution and the industrial development until World War I took place in several countries, presented both common elements and particularities between countries and between stages. The industrial revolution and development had various degrees of intensity until the middle of the 19th century and significantly increased several countries' production potential. The urbanization…

Pages: 8  |  Term Paper  |  Style: MLA  |  Sources: 5


Inflation Unemployment and Phillips Curve in China

Inflation, Unemployment and Phillips Curve in China Research particularities Inflation, unemployment and their definitions The problem of inflation The definition of inflation Measures of inflation How inflation is measured Global values of inflation Types of inflation Issues raised by inflation The problem of unemployment The definition of unemployment Measures of unemployment How unemployment is measured Global values of inflation Issues…

Pages: 50  |  Dissertation  |  Style: n/a  |  Sources: 40


Federal Reserve in Stabilizing the Current Economy

Federal Reserve and the Current Economy Federal Reserve and Current Economy The Federal Reserve is the central bank of U.S. And it has an important role in maintaining and stabilizing the banking system as well as the economy on the whole. It uses a variety of monetary policies and tools such as federal funds rates to keep the banking system…

Pages: 8  |  Term Paper  |  Style: n/a  |  Sources: 4


Federal Reserve Bank Financial Services

3 -- Computation and maintenance and 204.4 and the ratios prescribed in Sec. 204.9. Reserve deficiency charges shall be reviewed for shortfalls in required reserves and as per the provisions contained in 204.7. The various reporting requirements are (i) A foreign bank's U.S. branches and agencies functioning within the same state and coming within the ambit of the same Federal…

Pages: 9  |  Term Paper  |  Style: n/a  |  Sources: 0


Interdisciplinary Studies the Objective of

As well on is able to better view personal finances and make plans for economic shifts in personal finance such as preparing for ones' retirement. Whether business or personal finance, planning is important and a critical aspect of sound financial management. Communications skills are critically important in the health care industry and specifically in marketing health care services or products. Communication skills are important in the personal and professional life of the individual and will enable the writer of this work to a higher level of success. Economics is inherently tied into business finance and informs one how to view supply and demand curves and work with graphs and statistics on calculation of what is being spent and where which informs one about society, the local community, and the nation-at-large. II. Career Path The career path of this writer is as of yet still open. When considering the economy and job market the writer desires to work in healthcare business and specifically marketing. The family of the writer is engaged in a Home Health service. The writer as well as been in the Home Health business for many years and greatly enjoys helping people realizing intrinsic reward and specifically experiencing joy when helping others. The career goals of the writer of this work are present focused on the five-year objective of home-ownership and co-owner of the home health care company. Helping others and giving back to society brings the writer of this work fulfillment.…

Pages: 2  |  Essay  |  Style: APA  |  Sources: 0


Exchange Rate Volatility and International

There are many factors that the PPP model fails to consider and it appears that the PPP model only works in long-term, highly inflationary economies. Even these applications have been criticized. There are many later versions of this theory that consider nonlinear and linear economic models. The PPP theory continues to suffer from a lack of conclusive empirical evidence. Therefore…

Pages: 26  |  Term Paper  |  Style: n/a  |  Sources: 0


1930'S, Germany Was Plagued by

Some stability measures were implemented: new liquidity rules and reserve requirements were introduced to enhance the stability of the banking system. Competition in banking was suppressed; new banks or subsidiaries could only be established with government approval, and the government was entitled to fix interest rates and provision. The Banking Law of 1934 reflected common elements in the administrations: it…

Pages: 9  |  Term Paper  |  Style: n/a  |  Sources: 0


European Union Enlargement When Ten

Average per capita GDP in the current EU states (24,250 euros) is substantially higher than in Hungary (€7,080), for example, or Latvia (€3,740). Unemployment, the main cause of poverty, rapidly rose in the accession countries in the last 15 years. In the Czech Republic it climbed from 0.7% in 1990 to 6.5% in 1998 and is now almost 11%. On…

Pages: 15  |  Term Paper  |  Style: n/a  |  Sources: 0


Financial Risk Management

Risk Management Analysis: Essential Tools and Perspectives in a Treasury Management Context The recent (and arguably ongoing) global recession triggered in large part by the sudden economic crisis and collapse of the United States' banking industry and capital sourcing network has given businesses and governments the world over major grounds for pause and reflection about their operations and situations. Obviously,…

Pages: 10  |  Research Paper  |  Style: n/a  |  Sources: 8


US Debt

U.S. Debt a) According to the Bureau of Economic Analysis, the U.S. personal savings rate was just over 4% for the fourth quarter of 2009. This represented a slight increase over the previous quarter. The trend line since the first quarter of 2008 shows that personal savings rates in the United States have been increasing for the past two years, following a period of two years where savings rates decreased steadily to just over 1% (BEA, 2010). Net saving as a percentage of gross national income, however, has been on a steady decline, with recent quarters showing negative net savings (BEA, 2009). b) There are a number of possible causes for the decline in the savings rate. One is that access to credit has become easier, which in turn makes it easier for consumers to spend. It has not become easier to save. Another major contributing factor is that real wages have been declining over the long-term, having peaked in 2003 (Mandel, 2008). This compels either a sacrifice in lifestyle or increased borrowing, and Americans have chosen the latter. c) Declining savings increases personal debt, which in turn increases personal risk. Bankruptcies increase, resulting in shocks to the financial system -- mortgage foreclosures in particular. Spending with credit has also fueled the trade deficit, as consumers spend much of their income on foreign goods, in particular oil which has a very low price elasticity of demand. d) While the economic downturn has forced the savings rate back upwards, there are a number of policy responses that could impact the underlying problem of real wage stagnation. Real wages have stagnated in part as employers have been forced to spend more on benefits, especially health care. The new health care reform may result in lower employer spending on health care, allowing for real wages to increase. In addition tighter restrictions on credit, especially predatory lending, could restrict access to easy credit, possibly compelling consumers to save more. 2. a) the rising level of U.S. debt is not sustainable indefinitely. Our debt is backed by our economy, which……

Pages: 2  |  Essay  |  Style: n/a  |  Sources: 2


Self-Serving Actions That Management May Take to

¶ … self-Serving actions that management may take to decrease the risk to their personal portfolios. Essentially, this is about the paradigm of risk management, and ways to mitigate such within a template of managerial personal portfolio; another term is, of course, portfolio management. While risk management can be a multi-stage process, there are at least five actions that managers…

Pages: 10  |  Essay  |  Style: n/a  |  Sources: 10


Malaysia Is Characterized by the World Bank

¶ … Malaysia is characterized by the World Bank as being a middle-income country. Modeled after the Anglo-American system, Malaysian banks are restricted in their operation to accepting deposits, granting loans and other specified activities, and they are kept at an arm's length from corporate governance and management; however, beginning in the 1970s, the soundness of the Malaysian banking system…

Pages: 53  |  Dissertation  |  Style: n/a  |  Sources: 35


Structural Adjustment Program SPA's

Structural adjustment programs (SAPs) Structural Adjustment Programs Structural adjustment programs are meant to help countries pay down their debt and have more capital, trade, and cash flow. This is done so that they can be not only more economically sound but so they can offer more to other countries, as well. One country that has been the subject of structural…

Pages: 20  |  Thesis  |  Style: MLA  |  Sources: 15


Firm Structure, Multinationals, and Manufacturing Plant Deaths,

¶ … Firm Structure, Multinationals, and Manufacturing Plant Deaths," from the Review of Economics and Statistics, over a typical five-year period, more than 30% of U.S. manufacturing plants shut down, accounting for more than 17% of manufacturing employment" (Bernard & Jensen 2007, p.193). Given the significant impact this has had on the U.S. economy, Andrew B. Bernard and J. Bradford Jensen attempt to explore the role of firm structure in plant shutdowns, which they feel has been insufficiently addressed in the current literature on plant death. Past literature has tended to emphasize individual plant characteristics rather than the parent organization of the plant. True, "if single-plant firms account[ed] for the bulk of employment and output in the U.S. economy or if plants owned by multiunits behave no differently from single units, the exclusion of firm characteristics" in previous studies "would be a minor oversight," however, this is not the case, given the prevalence of "multiunit and multinational firms" today (Bernard & Jensen 2007, p.193). Furthermore, multinational and multiunit plants exhibit different characteristics and have different access to resources than smaller plants, which makes the author's line of inquiry a worthy subject of study. The author's data indicates that the probability of plant death is substantially reduced for plants that are part of a multiplant firm and "domestic plants owned by U.S. multinationals are far less likely to close than plants in purely domestic firms" (Bernard & Jensen 2007, p. 193). In particular, high productivity exporting plants are significantly less likely to die. "The export status of the plant reduces the probability of shutdown by as much as 15% even after accounting for plant size, productivity, factor intensity, and ownership structure" (Bernard & Jensen 2007, p.194). The authors provide some of the first direct evidence on the link between international investment and domestic labor market outcomes (Bernard & Jensen 2007, p.195). This is despite the fact that multinationals pay higher wages than non-multinationals (Bernard & Jensen 2007, p.194). The authors do not explore why this is the case, although it is possible that higher labor costs are sufficiently offset by the greater profits of the multinationals, or that U.S. multinationals are more likely to close smaller, poorer paying and performing plants. Theory, principles of journal article The article supports the classical, microeconomic theory of the superiority of economies of scale (McConnell, Brue, & McPherson, 2006). Large firms tend to have larger…

Pages: 3  |  Term Paper  |  Style: MLA  |  Sources: 3


Pigou's Contributions to Microeconomics

Pigou's Contributions To Microeconomics Although his following was somewhat lest robust than that of economists such as Marshall or Keynes, several ideas proposed by Pigou form the basis for various economic and finance theories in practice today. Pigou is regarded as the creator of modern notions of welfare economics, which encapsulates the study of how the smooth running of economies…

Pages: 8  |  Term Paper  |  Style: Chicago  |  Sources: 5


Return on Financial Assets There

The gross return in this case was 4% (400/10,000) and the inflation rate was 5%. Thus, the real return was -1%: .04 - .05 = -0.1% 4. The current yield of the stock is $2 / $53 = 3.77% There are no expectations of capital gains on the current yield, so historical performance is irrelevant. It is assumed in this model that the dividend next year will be the same as it was the previous year, and this expected dividend is the basis of the calculation, until the company announces what its dividend for the next year will be. The capital gains yield on the stock was ($53-$50)/$50 = 6% The return on the stock over the course of this year was $5 ($3 capital gain + $2 dividend). The original purchase price was $50, so $5 / $50 = 10% is the total return on the stock over the course of the past year. 5. The formula for CAPM is as follows: source: Investopedia In this situation, the risk-free rate has been identified as being 2%. The market risk rate is 12%, so the risk-free rate needs to be subtracted from this to derive the market risk premium. The betas for each company are given. All other factors being equal (and they are), the lower the beta the lower the expected rate of return on the stock. For the three securities, we have CAPM calculations as follows: Ra = 2 + (.3)(12-2) = 5% Ra = 2 + (.7)(12-2) = 9% Ra = 2 + (1.6)(12-2) = 18% As predicted, the firm with the highest rate of risk (the third company, with the beta of 1.6) has the highest expected rate of return according to CAPM. In this way, CAPM clearly illustrates the link between risk and return in the market, particularly with respect to investor expectations of these two concepts. Works Cited: Investopedia. (2011). Advanced bond concepts: bond pricing. Investopedia. Retrieved January 28, 2012 from http://www.investopedia.com/university/advancedbond/advancedbond2.asp#axzz1kmQexa4w Investopedia. (2011). Capital asset pricing model. Investopedia. Retrieved January 28, 2012 from http://www.investopedia.com/terms/c/capm.asp#axzz1kmQexa4w Estrella, A. & Mishkin, F.……

Pages: 3  |  Term Paper  |  Style: n/a  |  Sources: 2


Empirical Evidence for the Ricardian Model of Trade

Ricardian theory of comparative advantage states that relative labor productivity determines trade advantage. In other words that the international difference in comparative advantage is due to relative labor productivity, and mostly technological differences between nations with some nations able to produce more than others due to their technological advantage. All other factors are assumed to be similar across the countries. The Ricardian model also argues that a country shows better profit in trade in those sectors where its productivity advantage is greater than its wage disadvantage or where its wage advantage is greater than its productivity disadvantage. Using algorithmic features, the model, in other words, argues that letting ai represent unit labor requirements, for sector b in country j: ai = Lb/Qjt where Q = the added value L = labor employment. The marginal products of labor, therefore results of labor, are supposed to be consistent with variations in labor / technology. All are intertwined and conjoined. The competitiveness of the sector I in country j compared with another country also depends on the pitch of its wages as well as the bilateral exchange rate which determines the relative labor unit cost that is determined by that country's specific currency. Unfortunately, as Golub and Hseih (2000) point out, not only is the theory almost totally ignored in current usage but, given the difficulty with which the Ricardian model can be substantiated empirically, little empirical studies exist to support it. This is also due to the fact that the model also leaves out a lot of details. Nonetheless, its central ideas may be investigated and some researchers have done as much. The following figure adapted from Ashenfelter and Jurajda (2001, p.43), provides cross-sectional evidence of the hourly wage of countries and productivity vis-a-vis the U.S. Mexico, India, China, and Korea are at the bottom range of the scale, whilst the more technologically equipped countries of Germany, Japan, and France are in the top-right hand corner, Japan being uppermost. The figure shows that not only do higher wages signal higher productivity, but technological finesse seems to follow a similar positive association: In 2000, Golub and Hseih used the OECD database to assess information about the trade flows, unit productivity, and labor costs of about 40 manufacturing companies from OECD regions including Mexico and Korea in the years 1970 to 1972. In order to examine association between trade patterns and relative labor costs,…

Pages: 4  |  Essay  |  Style: Harvard  |  Sources: 2


Kindleberger's Premise Is That Psychological

The result of loans to lure new homeowners is an overestimation of the return that can be expected from the initial investment. The boom created by this may indeed be the beginning of a downward cycle for the housing market. This boom is then the second point offered by Kindleberger. Increasingly insecure loans offered by banks feed the illusion that housing is a profitable investment, and thus results in overtrading. Currently it is apparent that the housing market is at the fifth stage, where some insiders are leaving the market. While it is true that many still have faith in the housing investment, others have come to terms with the economic realities of the market, and made the decision to invest elsewhere. It must also be said, however, that the effect of Hurricane Quatrain may have substantial effects on interest rates. Falling interest rates cold then result in greater sales in the housing market. This effect on the other hand is minimal in the face of the overall trend in the housing market. The fifth stage identified by Kindleberger then offers little in terms of future prospects for the housing market. When the sixth stage is reached the housing market reveals itself as an unwise investment, mainly by the desertion of key investors. Again psychological factors come into play, paralleling the so-called mania experienced at the initial boom of the market. The apparent desertion of key investors result in a type of panic, resulting in the withdrawal of an increasing amount of investors. There is a rush for liquidity. The final stage is then that prices become absurdly low once again and investors are tempted by an apparent easy investment. The general prospect for the housing market according to this model is then both negative and positive. While the market may experience a fall in the near future, this fall will become so severe that it will once again create a boom in very low prices for investors.…

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International Financial System the Country

Australia is also a trading hub for Asia and has in the past seen an uplift in GDP and GNP based on the effects of a strong Asian economic growth (Akhtar, Faff, Oliver, 2011). While the Asian nations' economic impact on the global economy is more distributed, it is significant on Australia as the banks in this nation also underwrite many of the development and new venture initiatives throughout Southeast Asia and China (Akhtar, Faff, Oliver, 2011). The mining industry in Australia has a significant impact on exchange rates, as the majority of finished ore and materials are high-value exports (Lonergan, 2004). Due to all of these factors, the Australian exchange rate will continue to stay at a relatively flat growth rate, dropping over the short-term due to Asian economic fluctuations and the mining industry experiencing a slight pause in growth. 4. If possible, find out what kind of exchange rate system your country has (floating, fixed, pegged, etc.). As of December 12, 1983 Australia has been on a floating exchange rate system as the government believed it would be more accurate in its assessment of current economic conditions. References Akhtar, S., Faff, R., & Oliver, B. (2011). The asymmetric impact of consumer sentiment announcements on Australian foreign exchange rates. Australian Journal of Management, 36(3), 387. Lonergan, W. (2004). Foreign exchange rates in Australian Mining Company valuations. JASSA, (4), 2-7. Richards, N.D., Simpson, J., & Evans, J. (2009). The interaction……

Pages: 2  |  Capstone Project  |  Style: n/a  |  Sources: 0


Jobless Recovery Jaflor Why Jobless

It is possible that this theory is among the causes of "jobless recovery." There is no contest that the high-technology equipments of today can surpass the productivity output of manual labor. Aside from this, when manual labor is needed, businesses turn to the low-cost labor providers such as China and India (Wessel, 2003). Wessel stated that the slow recovery in labor is caused by the gap between the supply and demand of U.S.'s economy. The rate of supply is higher than the rate of demand. If only both will grow proportionally, to have an increase in demand based on the current situation, jobs can be created. This can be made possible by a cut in taxes. If businesses will spend less on taxes, they can afford expansions, thus will result to a need for more workers. Increase Pace of Structural Change in the U.S. Economy Two types of adjustments can be applied by businesses during economic recessions. These are the cyclical and structural unemployment. In a cyclical unemployment, businesses recall laid-off workers upon their recovery from a recession. Unemployment in a cyclical adjustment is basically temporary. In a structural unemployment, on the other hand, jobs are permanently eliminated. This is what the United States' economy currently experiences, an increase in pace of structural change. Groshen and Potter indicated the following three reasons for this. First, the structural decline observed in many industries might be a reaction to a period of overexpansion Second, improved monetary and fiscal policy may have reduced cyclical swings in employment, leaving structural shifts as the prevailing form of change. Third, innovations in firm management may be promoting a structural shift toward leaner staffing. The structural change theory is another possible cause of U.S.'s current "jobless recovery." Because those who loss their jobs during the 2001 recession are victims of structural change, and structural adjustments prevailed in many companies, U.S. is now experiencing a high rate of unemployment. To solve this, and as Groshen and Potter suggest, an increase in financing must be provided for businesses who undertake riskier ventures. This will help businesses reduce worries regarding costs for their new ventures, will give them courage to undertake new business ventures, which in the end will result to an increase in demand for more workers. Bibliography Bernanke, Ben. The Jobless Recovery. The Federal Reserve Board. 07 Dec 2003. http://www.federalreserve.gov/BoardDocs/Speeches/2003/200311062/default.htm Wessel, David. Productivity Gains: Never Bad, Even for…

Pages: 3  |  Term Paper  |  Style: n/a  |  Sources: 0


Marketing Analysis Situation Overview Citibank

Further more, the bank seems to have succeeded to manage and overcome the difficult legislative and regulatory problems that some of these countries had and has implemented quite well on the banking market. On the other hand, the NO solution would have several important disadvantages. The main one, in my opinion, is the fact that such a solution does not…

Pages: 10  |  Term Paper  |  Style: n/a  |  Sources: 0


J.P. Morgan: Banker, Businessman, and Brash Powerbroker

jpmorgan.com). History.com explains that J.P. Morgan's marriage to Amelia Sturges in 1861 only lasted four months (she died of tuberculosis) and in 1865, during the Civil War, he married Frances Louisa Tracy, whose father was an influential New York attorney; they had four children. The U.S. railroad industry was expanding very quickly in the late 19th century, in fact the expansion created cutthroat competition and so J.P. Morgan got involved and began "reorganizing and consolidating" several of the railroads that were struggling for capital (history.com). Soon he was in control of "significant portions of these railroads' stocks" and in time J.P. Morgan held ownership to "an estimated one-sixth of America's rail lines" (history.com). The positives in his life included the fact that loaned the U.S. government an estimated $60 million in 1895 -- basically rescuing America from financial disaster; he also led Wall Street out of a major financial crisis in 1907. He amassed an enormous collection of valuable art and donated those paintings to the Metropolitan Museum of Art in New York. The negatives included his penchant for manipulating the financial markets. He created monopolies "…by making it difficult for any business to compete against his"; among his business creations he takes credit for General Electric and U.S. Steel (www.biography.com). In conclusion, during the height of his financial power, J.P. Morgan was viewed as arrogant and power-hungry -- and he bullied his way into dominance in several industries -- but he was also known (and is known today) as a very intelligent and industrious businessman who helped American business enterprises become successful during the late 19th and early 20th centuries. He died in 1913, his reputation fully sealed as the most dominant figure in American capitalism. Works Cited Encyclopedia Britannica. "John Pierpont Morgan." Retrieved March 20, 2014, from http://www.britannica.com. 2008. History.com. "J.P. Morgan." Retrieved March 20, 2014, from http://www.history.com. 2009. J.P. Morgan. "Going Global." Retrieved March 20, 2014, from http://www.jpmorgan.com. 2013. The Biography Channel. "J.P. Morgan Biography." Retrieved March 20, 2014, from http://www.biography.com. 2010.…

Pages: 2  |  Essay  |  Style: n/a  |  Sources: 3


Microfinancing and Its Various Functions

Microfinance Remittances, credits, micro-insurance, and low-income leasing to those consumers normally excluded from the services of the bank are all portions of the provisions that micro-financing provides. The overall purpose of microfinance is to provide regular and steady access to financial services that are appropriate, including savings, insurance, and fund transferring. All in all, microfinance is a very useful and…

Pages: 9  |  Essay  |  Style: n/a  |  Sources: 9


Impacts on Labor Market From Trade and Immigration in the United States

¶ … Labor Market from Trade and Immigration in the United States Over the last several decades, globalization has been having a tremendous impact on the United States economy. Part of this is in response to the increasing pressures to remain competitive, as the overall trend since the end of World War II has been to increase the number of…

Pages: 8  |  "Data Analysis" Chapter  |  Style: n/a  |  Sources: 9


Use of Real Options Theory in Financial Management Modeling

Real Options Theory in the Real World It has been more than three quarters of a century since economic times were uncertain as they have been over the past several years, and this has had a major impact on the world's economy and the way in which economic and finance decisions are viewed. A hugely varied myriad of prognoses and identified trends have been put forward by economists and financial analysts, some still predicting the impending doom of a double-dip recession while others maintain that recovery is already strong, but has begun to drastically reshape the world of business in any number of ways. Still others see the recession as no more than a normal if substantial and long over-due correction, and the current period of apparent recovery as the simple progression of business as usual in the global market. With so many competing theories that come to such drastically different conclusions, finding a way to manage uncertainty is essential for organizations and investors at all levels, and especially for the financing needs of these corporations. Standard valuation models do not really account for uncertainty or the implementation of strategy itself, which can drastically change the long- and even the short-term value of holdings, making these models and current valuations woefully inadequate when it comes to determining financing and investment decisions during the current period, and indeed in any environment of uncertainty. It is for this reason that other models and frameworks for analyzing the current values of holdings and predicted values of finance decisions have been developed. The Real Options Theory is a model or theoretical framework that utilizes the concepts of financial options and applies them to managerial and finance decision-making scenarios. The ability to make a decision is thus given specific value based on the scenario and the potential decisions that could be made, and this adds strategy and uncertainties into the overall valuation of a company's current position, investments, and capital structure. This theoretical framework has not come into especially wide use despite its ability to model uncertainties and discretionary value and being shown to be fairly accurate in real world circumstances, in part due to criticisms surrounding the basic premise of quantifying uncertainty as this theory does. Examining an application of real options theory, however, make sit very clear that while complex and perhaps somewhat unwieldy, this theory and model can be incredibly useful for…

Pages: 5  |  Term Paper  |  Style: n/a  |  Sources: 4


Role of Hedge Funds in Financial Markets

¶ … Bank for International Settlements 2010 Triennial Survey of Foreign Exchange and Derivative Markets reports that big banks (reporting dealers) are undertaking a steadily diminishing share of derivative trade and other financial institutions - prevalent amongst them hedge funds and pension funds are undertaking a steadily larger share. Why might this trend be occurring, and what is its potential…

Pages: 7  |  Essay  |  Style: n/a  |  Sources: 10


Nature of a Company's Asset Base (Tangible

¶ … NATURE OF a COMPANY'S ASSET BASE (TANGIBLE OR INTANGIBLE) AFFECT CAPITAL STRUCTURE CHOICES: AN EXAMPLE USING INDIA DATA The purpose of this paper is to investigate whether the nature of a company's asset base (tangible or intangible) affects the capital structure policies of that company. This will be done using company data and information from India, and through…

Pages: 48  |  Research Proposal  |  Style: Harvard  |  Sources: 20


Yield Curve

Yield curve is a graphical representation of the yields available on treasury securities going out over time. The slope of the curve can be determined by either examining the entire curve or selecting key points along the curve for study. The yields on these securities reflect the expected rate of return on these products. Because the market sets the prices, and therefore the yields, the yield curve represents the market's expectations of future interest rates. These rates are expected to be set in relation to inflation and economic activity. Thus, treasury rates are a proxy for those two variables. As a result, the slope of the yield curve is expected to be an accurate reflection of the market's view of the future economic situation. Indeed, the slope of the yield curve has been linked in studies to subsequent changes not just in GDP but in consumption, industrial production and investment (Estrella & Trubin, 2006). The yield curve is a frequently cited leading indicator. Research has indicated that the slope of the yield curve has a "consistent negative relationship" with subsequent economic activity. The lead time required for this relationship to materialize is between four and six quarters. The yield curve has been an effective predictor of recessions in particular, since 1950. The relationship between the yield curve and medium-term economic shifts has been demonstrated to hold true in other industrialized nations as well (Federal Reserve Bank of New York, 2009). The yield curve at any given point is dependent on the maturities that are selected for analysis. The maturities are selected to match the time horizon being studied. Thus, the yield curve that is an accurate predictor of recessions four to six quarters in the future should typically be of similar maturities (Ibid). But while the yield curve has proven a good predictor in the near future, how far into the future has the yield curve been able to predict the economy? Research indicates that the slope of the pairing of the three-month and ten-year treasury rates is an accurate predictor over longer time periods. This particular slope is most useful two to six quarters ahead (Estrella & Mishkin, 1996) and it would be reasonable that a ten-year rate would only give prediction power up through ten years, however. It is worth noting that the predictive power of the yield curve is dependent on the benchmark that is set. Each…

Pages: 3  |  Thesis  |  Style: Harvard  |  Sources: 2


Enron Case Study

Enron Companies that do not behave in the ethical manner that society expects will eventually suffer in terms of profit. The temporary gain in profit that companies see because of their unethical behavior is erased one hundred fold if the deception is discovered. Yet, so many CEOs practice this type of behavior. They jockey the financial position of the company…

Pages: 7  |  Case Study  |  Style: APA  |  Sources: 5


Saudi Stock Market

¶ … Saudi Arabian Stock Market Measuring Consumer Confidence in the Saudi Stock Market? The Saudi Arabian stock market is heavily dependent upon oil as a key to its survival. From 2001 to 2006 the Saudi stock market experiences incredible growth. In the last part of 2005 the price of oil outpaces the Stock Index. This caused a drastic drop…

Pages: 30  |  Term Paper  |  Style: Harvard  |  Sources: 20

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