Study "Economics / Finance / Banking" Essays 991-1000

X Filters 

Finland and Nokia Technology Thesis

… Finland and Nokia

The reciprocity of Finland's educational and technology investment strategies at the government level are specifically designed to give its telecommunications companies competitive advantages in global markets. This is also driven by the deliberate strategy within Finland of creating a myriad of telephone systems that purposely did not integrate with each other, as the nation wanted to make it as difficult as possible for the Russians to communicate if they chose to invade from the east (Doz, & Kosonen, 2008). These two factors if exceptionally high levels of investment in education and the deterrent of making their telephone systems as incompatible with each other as possible are the catalyst that make the relationships between the Finnish government and Nokia so unique globally (Kautto, 2007). The implications of this strategy on government, economy, education, religious systems and the national technology maturity are discussed in this paper.

Government

Just like the U.S. government, the Finnish government has judicial, legislative and executive branches of their government. Their president is elected for six-year terms, and can serve two terms, just as American presidents can. The president also appoints the Prime Minister, the equivalent of the U.S. Secretary of State. The Finnish government is governed by a 200 member parliament that is elected according to population densities of regions, which each Member of Parliament serving four years. There is no House of Representatives and Senate, as is the case in the U.S. Instead the Parliament presides and defines laws for the entire country over time. Ironically the political landscape of Finland in many ways mirrors its telecommunications legacy in that both are highly balkanized, fragmented, with highly individual priorities and agendas (Kautto, 2007). Despite the highly balkanized nature of the political landscape however the country has been able to survive intact through exceptionally challenging recessions through the 1994 -- 1996 timeframe that bordered on economic depressions (Westerholm, 2009).

Economy

Over the last fifty years Finland's economy has progressed from being primarily dominated by food stuffs, shipbuilding, pulp and paper, and textiles to a manufacturing and service-dominated economy (Makinen, Yannatta, 1998). Finland's concentration on transforming its economy from being primarily reliant on raw materials to manufacturing and services has required exceptional levels of Gross Domestic Product (GDP) investment in education, with the result of Finland dominating the Scandinavian region with PhD graduates (Makinen, Yannatta, 1998). Today according to the CIA Fact Book the GDP of Finland will grow at 4.9% and the country attained a Per Capita Income of $37,200 in 2007, which is among the highest in Europe (Westerholm, 2009). The long-term plans put into place decades ago have been successful in transforming the Finnish economy into a services-dominated one, with 64% of total GDP in 2008 from this sector, and 33.2% from manufacturing, the remainder from agriculture (2.8%). The transformation of Finland has been nothing short of remarkable given the exceptionally deep economic recession they experienced as a nation in…… [read more]


State Building and Civil Society in Eastern Europe After the Communism Thesis

… ¶ … building and civil society in Eastern Europe after the communism

General considerations

Poland and Ukraine are two of the countries that have come out of the Communist block and have embarked in a process known as transition, from… [read more]


Constitution Economic Powers Constitution, Article Research Proposal

… Constitution Economic Powers

Constitution, Article I, Section 8: The Economic Powers of Congress

The economic powers granted to Congress by the United States Constitution are numerous and varied, with far-reaching and often complex implications and effects. The basic underlying principles… [read more]


Global Financial Crisis: A Comparison Thesis

… ¶ … GLOBAL FINANCIAL CRISIS: A COMPARISON OF THE EXPERIENCE IN SAUDI ARABIA & UAE

The impact of the global financial crisis upon the countries of Saudi Arabia and the United Arab Emirates, while slower in being realized than throughout the rest of the world have nevertheless impacted both Saudi Arabia and the UAE. Since Saudi Arabia is now part of the global economy there is no way that being affected from the global financial crisis is possible however, due to the large holdings of investors and banks in Saudi Arabia and the UAE coupled with the falling prices of raw commodities, the governments and investors of both Saudi Arabia and the UAE are uniquely positioned at the present.

PURPOSE OF THE STUDY

The purpose of this study is to examine the impact of the global financial crisis and specifically to examine the experience of this crisis in Saudi Arabia and the UAE.

SIGNIFICANCE OF THE STUDY

The significance of the present study is the knowledge that will be added to the existing knowledge base of the impact of the financial crisis on Saudi Arabia and the UAE.

IV. DEFINITION OF THE FINANCIAL CRISIS

The present financial crisis has derived from more than one source although many blame this on the subprime mortgage industry. The truth is that the present financial crisis can be blamed on many aspects of economic policy and practice areas. The work of Jawai (2008) states that the problems "stem from the collapse of the dotcom boom in the early part of the decade and the subsequent period of low interest rates." (p.2)

Lower interest rates worked to drive excessive lending and risk-taking in the financial sector. In 2006, 15% of the mortgage market in the…… [read more]


Financial Management in Multinational Organizations Essay

… Financial Management in Multinational Organizations

The contemporaneous business community is marked by a wide series of features, such as an increasing emphasis placed on customer satisfaction or on employee on the job satisfaction. Aside these however, two crucial elements define… [read more]


Flat Tax on Income Research Proposal

… Flat Tax on Income

The objective of this work is to examine the pros and cons of a flat tax on income as a viable option to deal with the current recession in the United States. The concept of a… [read more]


Keynesian and Marxism Economics Thesis

… Keynesians and Marxians

Keynesians vs. Marxist Economics and the Economy Today

The economy of today is changing rapidly and it can be debated that the old theories that applied to the economy of the early 20th century no longer apply.… [read more]


New World of Financial Risk Essay

… ¶ … New World of Financial Risk. A synopsis of the content is given followed by a specification of the thesis's main point. Three supporting opinions/reasons for this thesis are outlined, as well as three opposing opinions/reasons. Finally, a summary and opinion of the thesis is presented.

The New World of Financial Risk

The following paper reviews the article The New World of Financial Risk (Johnson & Kwak, 2009). A synopsis of the content is given followed by a specification of the thesis's main point. Three supporting opinions/reasons for this thesis are outlined, as well as three opposing opinions/reasons. Finally, a summary and opinion of the thesis is presented.

Johnson and Kwak (2009) note that when it comes to human endeavor and financial and business activities, risk is ever-present. For this reason, managing risk has been a concern for millennia. Today, the risk diversification and management are critical components of modern investment and finance. Yet, with risk comes opportunities for rewards. It is not risk itself that is bad, but instead mismanagement or underestimating risk that can be detrimental. One such area of troublesome risk is over leveraging.

Using Lehman Brothers Holdings, Inc.'s collapse as an example, Johnson and Kwak (2009) state that they had a leverage ratio above 30. Although high leverage is not necessarily a death knell, it's what is done with the funds that are borrowed. The catalyst for Lehman's ultimate failure was liquidity risk, which snowballed into the Federal Reserve freezing money markets and financial institutions reconsidering counterparty risk, which eventually led to the AIG bailout.

The last two decades has seen a market where participants have systematically underestimated risk. Part of this is due to the psychological effect concerning the fact that the longer one goes without a crisis the more convinced one becomes that crisis can be averted. In addition, investors relied on bond rating agencies who "made dubious calls in the past several years" (Johnson & Kwak, 2009). Faulty value-at-risk models, unanticipated housing price declines, securitization creating even more risky securities, and new ways to hedge fixed-income securities all contributed to the financial problems. In response, new tools were developed.

According to Johnson and Kwak (2009) new liquidity measures, guarantees for a variety of assets, and bank recapitalization was developed to deal with the new world of risk. However, there are still no guarantees that these will work. Sub-prime mortgages, prime mortgages, commercial mortgages, auto loans, credit cards, corporate debt, and mortgage-backed securities are all possible areas where banks are expected to take writedowns. Non-financial firms too are experiencing economic troubles, with the worst recession in decades. In the short-term, the authors surmise, businesses will just have to adapt to doing business with less credit. Long-term, Johnson and Kwak look to new regulations and more conservative financial institution behavior, to create a healthier and more transparent financial system. Of course, the downside is this will lead to increased costs of doing business.

Three Supporting Opinions/Reasons:

The first supporting opinion Johnson and Kwak (2009)… [read more]


Gold Standard the Federal Reserve's 'Cross Thesis

… Gold Standard

The Federal Reserve's 'Cross of Gold': The Great Depression and the existence of the gold standard

The causes of the Great Depression are still hotly debated amongst economists, even today. Usually cited causes include the over-speculation by investors… [read more]


Economic History in Economic Terms, Globalization Research Proposal

… Economic History

In economic terms, globalization is the process of increasing economic integration between countries, leading to the emergence of a global marketplace or a single world market. Many had hoped that globalization would lead to conditional convergence for developing countries as they grew faster, that is, conditional on their faster rate of factor accumulation. However, Lant Pritchett (1997) in Divergence, big time argues that there has instead been divergence in relative productivity levels and livings standards between developed and developing countries from 1870 to 1990. While there are some issues with Pritchett's analysis, it appears that developed and developing countries are not equally enjoying the intended benefits of comparative advantage

Pritchett finds that, between 1870 and 1985, the ratio of incomes in the richest and poorest countries increased six fold, the standard deviation of per capita incomes increased by between 60 and 100%, and the average income gap between the richest and poorest countries grew almost nine fold (from $1,500 to over $12,000). In contrast, there is strong convergence in per capita incomes for developed countries, although not at a uniform rate, over time. Since 1870, there has been no obvious acceleration in their growth rates; the average growth rate of the 17 developed countries between 1980 and 1994 is almost the same as that between 1870 and 1960. Hence, developing countries were not outpaced; they simply could never catch up to their developed counterparts.

Although Pritchett's analysis is compelling, this author does acknowledge shortcomings of the historical analysis. Most notably, analysis of long-run convergence or divergence is hindered by the lack of reliable historical estimates of per capita income for poor countries. To compensate, the author makes certain assumptions regarding the least possible levels of incomes in the developing countries. Further, Pritchett states that,

"Defining the set of countries as those that are the richest now almost guarantees the finding of historical convergence, as either countries are rich now and were rich historically, in which case they all have had roughly the same growth rate (like nearly all of Europe) or countries are rich now and were poor historically (like Japan) and hence grew faster and show convergence."

For example, Pritchett admits that the sample of developed countries does not include countries such as Argentina or India which are countries that tend to find convergence.

There are other limitations of Pritchett's article which the author does not mention. The 1997 timing of Pritchett's article as well as the cut off date for data analysis, 1990, limits inclusion of a recent decade which experienced rapid globalization with countries such as India and China experiencing tremendous growth. Some may argue for various reasons beyond this scope of this paper that this period is more indicative…… [read more]

NOTE:  We can write a brand new paper on your exact topic!  More info.