Has financial globalization failed to meet expectations Discuss Essay

Has financial globalization failed to meet expectations Discuss - Essay Example However, despite positive predictions of neoclassical models, there is empirical evidence, which calls into question the positive impact of financial globalization (Stulz 2005). The aim of this paper is to define the expectations associated with financial globalization and to explore whether financial globalization has failed to meet these expectations. Global cross-border liberalization of trade (the second age) in financial assets also knows as financial globalization has become possible after the WWII, when the countries have removed their barriers (Stulz, 2005; Mishkin, 2009). According to the neoclassical theorists, such a shift to financial liberalization should have been beneficial to both developed and developing economies (Stulz, 2005). The benefits associated with global liberalization were expected to be especially large and significant for developing countries (Kose, 2009). Great examples could be listed here are two the most populous countries in the world, which have managed to reduce the percentage of extremely poor people and, thus, to reduce income inequality in developing markets (Mishkin, 2009). Furthermore, financial integration is viewed as an important step for middle income emerging markets enabling to enhance macroeconomic stability in developing countries (Kose et al., 2009:9). In result of financial integr ation, capital-poor (developing) countries are expected to expand their narrow production bases (often dependent of natural resources or agricultural sector) leading to enhanced specialization and, thus, to decrease macroeconomic volatility (Kose et al., 2009). Moreover, liberalizations of equity market are recognized to be a strong driver of both short-term and medium-term growth (Kose et al., 2009). Mishkin (2006) in his book â€Å"The Next Great Globalization† also explains the benefits of financial globalization, arguing that financial globalization can bring huge benefits if there will be undertaken the

Audit Reports Essay Example | Topics and Well Written Essays - 1250 words

Audit Reports - Essay Example Audit Report on financial statements of an entity is normally an independent auditor's report. Internal auditors also submit reports on assessment of internal controls installed by entities voluntarily or as statutory compliances. Audit report carries the results of audit examination conducted with in a framework in shape of opinion formed by auditors on such audit examinations. Auditing opinions formed and conveyed through audit reporting may be classified into four categories, namely an unqualified opinion, a qualified opinion, adverse Opinion, and disclaimer of an opinion. Unqualified Opinion expresses that financial statements are presented in accordance with requirement of GAAP. A qualified opinion conveys that financial statements present the financial position, financial results, and cash flow of the entity of the prescribed period in accordance with GAAP except for the matter or matters on which the report is qualified. Adverse Opinion on an audit report is provided when the financial statements do not present financial position, financial results and cash flows in accordance with applicable GAAP. Reports containing adverse opinion are issued when there are material departures from applicable GAAP in the presentations of financial statements. Some time an auditor is not in a position to form an opinion on the financial statement presentations. ... Objectives of Audit Reports Audit reports are medium of communication of results and findings of an examination or audit conducted under certain established framework. Under financial audit reporting auditor is concerned with forming an opinion on the financial statements and therefore independent audit report becomes an important medium for communicating that opinion to the shareholders or to the owners of the entity. This opinion of the auditor serves a variety of objectives of the audit function undertaken voluntarily or as compliance of a legal requirement. Some of these objectives are stated as under: Audit reports coveys the misstatements or deficiencies in the compiled financial statements showing the performance for a fiscal period and financial status on a particular date of an entity. That is to say the objective of audit reporting is to bring those deficiencies to the fore for the observance of the users of financial statements and helping them in taking their investing or other decisions respecting the entity involved. Audits are undertaken to bring improvement and fairness in reporting the results of operations to the shareholders or owners of the entity. Audit report, being the final function of auditing, is a tool to highlight the areas needing specific attention of the management for the improvement so that true and fair financial statements are presented to the users of such financial statements. Audit report serves variety of management and operational objectives as well.'A variety of individuals will use audit reports for a variety of purposes. Executive management will typically use an audit report to gain an insight to the overall status of

International Business Law - Foreign Direct Investments rules in Term Paper

International Business Law - Foreign Direct Investments rules in Morocco and Democratic Republic of Congo - Term Paper Example here the economies of the host country may attract foreign investment in the lagging areas of the economy and on the same time protect the local investor. In the following paragraphs we will critically examine these characteristic of Foreign Direct Investment keeping in view the rules for such investment in Morocco and Democratic Republic of Congo. Morocco is an ethnically and culturally diverse society. Operating a free market economy, where in spite of the current Arab Spring robust growth has been seen and the prospects of the respective economy are very good for the coming years. Increase in the domestic demand and progress in the agricultural and non-agricultural sectors are the major attractions for Foreign Direct Investment (FDI). There are various regulations passed by the Moroccan Government in order to boost the foreign investment which will be discussed below: The Moroccan Government had adopted a new constitution in order to stable the political situation of the country. This step was taken to address the social demands of the region which tend to swing due to the Arab Spring. This change in the policy had bore fruitful results and attracted the investors of neighboring European countries like France and Spain. The government allowed the Prime Minister of the country to adopt investor friendly policy while keeping in view the civil rights of the local population. This created an environment which is suitable for an investor, and on the other hand addressed various social and political claims (Doing Business in Morocco, 2012). Due to various social disparities and inequalities and also due the absence of the effective labor market the rate of unemployment among the fresh graduates had increased. The government had announced and implemented various reforms to deal with this challenge, which includes the introduction of the private sector investment in the sectors of training, education, human capital development and career planning/counseling. The

Explain the process of market segmentation. Why is it thought Essay - 1

Explain the process of market segmentation. Why is it thought necessary for a firm to target specific segments of the market - Essay Example In this era, there is no such thing as a standardized product which is suitable for use by all people. Hence, no firm seeks to target the whole market at large and it is highly difficult to target a large potential market with the same product and the same marketing strategies. No products except maybe staple foods such as fruits, vegetables, bread, butter, and other important dietary supplements are aimed at targeting the whole population of consumers and are standardized products. All other products or services are differentiated and conformed to the needs and wants of various target groups (Greenberg and McDonald, 1989, pp. 95-96). Differentiation refers to adapting the characteristics and marketing of your product/service to fulfill the needs and wants of a particular target market. In order to select the target market for product/ service, a firm must indulge in the process of market segmentation (Greenberg and Mcdonald, 1989, pp. 110-112). Market segmentation is the process of dividing the larger potential market into smaller groups according to similar characteristics. The segmentation can be upon the basis of several variables depending upon the product/service the business is offering and how it plans to target its potential audience. Several advantages of market segmentation enable a business to perform more efficiently and make the business’s selling/ marketing strategies more effective. The first advantage of market segmentation is that segmenting the potential market allows the business to be more focused upon a certain group of customers. This prevents duplication of resources and enables the business to directly target the segment that is more likely to be interested in their product/service offering rather than wasting time and resources upon targeting a massive market that may not be interested in the product/service at all (Yankelovich, 1964, pg. 75-77). Market segmentation allows the business to see the

MGM624-0901A-01 Applied Accounting for Decision-Making - Phase 1 Essay - 1

MGM624-0901A-01 Applied Accounting for Decision-Making - Phase 1 Discussion Board 2 - Essay Example However, a steep increase in the prices will have an adverse effect on the sales volume. Hence an increase of 5% in the sales price will bring the break even volume back to [500,000 / (315 – 115)] 2,500 units. It is evident that JTI has invested heavily in the initial manufacturing of the new luggage line. Steps have to be taken to increase productivity of the entire manufacturing process, by reducing wastage and increasing the effectiveness of the labour. The effectiveness of the resources can be attained by introducing incentives based on performance. Awards can also be presented to the most effective employees every month and this will act as a motivating factor for the employees to increase the productivity (Samuels et al, 2000). Assuming that theses schemes reduce the variable costs to $110, then the break even volume becomes [500,000 – (315 – 110)] 2,440 units. There is a risk of losing sales volume, when the price is increased. The increase in price is profitable as long as the sales volume remains at 3,600 units. It is essential to consider the number of customers JTI stands to lose by increasing the prices (Baker et al, 2008). There are a number of risks involved in introducing incentives based on performance to increase the performance. The management has to set up benchmarks to quantify performance. In case the goals set are impossible to attain, the scheme will de-motivate the employees and can have a negative impact on productivity. Also, if the goals are very simple to attain, then the company stands to lose more in terms of incentive payouts to the employees (Latham, 2004). Hence excessive care has to be taken to set the benchmarks against which the performance of the employees will be measured. From the above arguments, it is clear that JTI has to increase prices and also increase the productivity in order to maintain

How can a manager motivate a workforce and what are the major benefits Essay - 3

How can a manager motivate a workforce and what are the major benefits of this to a company Support your answer with examples - Essay Example Several theories regarding how managers can motivate employees have been figured out by different researchers and these theories can be incorporated in real life by managers to motivate employees. One such theory is the need theory proposed by McClelland and according to this theory all individuals experience three kinds of needs including need for power, association and achievement and individuals tend to work in order to attain the satisfaction of these needs (Lauby, 2005, p.2). This writing will focus on how managers can use McClelland’s need theory in order to motivate their employees and how motivating employees can benefit an organization. Body As stated in the introductory section, individuals face three kinds of needs and they have a desire to fulfil these needs. One of the three needs identified by McClelland is the need for achievement that motivates individuals to work hard. Managers can motivate their employees by helping them in achieving the aims and objectives o f their lives. For example: employees work in order to earn money and they want to earn money in order to purchase a better living standard and lifestyle for themselves and even for those who are related to them. This shows that managers can motivate employees with the assistance of monetary rewards in exchange for the hard work and time employees invest in completion of aims and objectives of the organization. A study was conducted by Condly and other researchers in which th

Equity and Trusts Essay Example | Topics and Well Written Essays - 1500 words - 3

Equity and Trusts - Essay Example Jeremy Fanshawe, being a the trustee of the estate of his late father with sole beneficiary as his son, Kelvin as well as trustee of a small family trust or â€Å"joint trust† where the beneficiaries are his ex-wife Lydia and their adopted daughter Miriam, has a sensitive role in not only ensuring that the trusts are managed effectively but also beneficiaries received their share. As trustee, he has the fiduciary duty to enforce the agreed contents of the contract he has signed with his late father as well as the small family trust or joint trust2. Under the UK law, he is required a duty of care which is Part 1 of the Act wherein as trustee, Jeremy is expected to be reasonable3: (b) if he acts as trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession†4. This would require Jeremy to have prior knowledge and sufficient effort exerted to determine the viability of conducting the business about purchase of art works by the artist Farrah Foster as an investment. Whilst his first purchase, a painting, indeed increased value from  £13,000 to  £26,000, the manner of which this â€Å"investment† has been undertaken without clear purpose and process.  £20,000 worth of money was transferred from the joint trust account to his personal current account. Section 2 of the Schedule specifies that â€Å"when exercising any corresponding power, however conferred† 5 under Compounding Liabilities. On Part II Investment Section 4, it was required under Standard investment criteria, the trustee upon exercising power of investment, whether arising under this Part or otherwise, the trustee must have expertise to the standard investment criteria6. On the same manner, The Act also provides that: â€Å"Application of duty of