Changes in International Financial Markets

Changes in International Financial Markets What forces have brought a rapid change in the field of IFM? Today’s financial reality is that fiat money knows no national boundary. We do live in a global village era. Development in one country or region can spill over across borders. One branch of study that consider the financial landscape is Financial Management (FM) which is mainly concerned with optimal financial decisions, such as those pertaining to corporate finance with a view to maximize shareholders’ wealth. In case of International Finance the objective becomes more complex and importance of Management is inevitable because it is intricate to determine exchange rate fluctuations and to forecast the cash flow. So, International Finance Management (IFM) is thus, essential for financial managers to fully understand vital international dimensions in the light of maximizing stakeholders’ wealth. Rapid Changes In International Financial Markets Brought About By: The Internationalization Phase On the forefront, the greed to go international stems from the quest of being market seekers, raw material seekers and cost minimizers. Internationalization refers to the increasing importance of international trade, international relations, treaties, alliances and so forth. For these reasons, FM has expanded its global footprint. Included in this wave were the efforts to introduce a dramatic new commercial reality—the global market for standardized consumer products on a previously unimagined scale. Subsequently, IFM provides the required tools and expertise to deal with the international complexities encountered on the way. The Invisible Hand According to neo-classical economics, the market, left of its own devices, will efficiently allocate goods, resources, and services. Promising to benefit the entire globe via unfettered trade and growth, Adam Smith, the father of â€Å"invisible hand†, argued that the basic forces of supply and demand will help allocate resources efficiently. Consequently, the notion of the free market has expanded and today it is practiced on a global scale thus, further fuels the practice of IFM. Advances In Technology IFM gained momentum in the wake of a technological world. Technology has long been a crucial behind-the-scenes financial collaborator. On one side of the coin, online transactions allow for very fast movements of capital between countries, facilitating information dissemination, and clearance and settlement payments without the need of a physical marketplace – often in a matter of seconds. It reduces the cost of doing business internationally. On the flip side, these advances threaten to eclipse the international infrastructure. The importance of IFM is critically questioned when hackers have access to sensitive information with a few clicks of a computer mouse. Liberalization IFM came into being when various countries started opening their doors to each other. This phenomenon is well known as â€Å"liberalization† whereby entrepreneurshad the freedom to capitalizethe opportunity to step their foot in different parts of the world. The spark of liberalization was further aired by swift development in telecommunications and transportation technologies. The resultant of liberalization is today’s dynamic IFM. Globalisation Companies today operate on a global stage and can ignore this fact only at their peril. The term globalization is no longer a buzzword; it already transpired. For Khoo (2003), globalization is understood as the trans-boundary movements of capital, people, goods, information and culture, burst into intellectual awareness in the late 1980s and the 1990s. Globalization allows firms to view the world as one marketplace for all goods and services. The impetus for globalized financial markets came from the governments that had begun to deregulate their foreign exchange and capital markets. For instance, in 1980 Japan deregulated its foreign exchange market. Perhaps the most celebrated deregulation occurred in London on October 27, 1986, and is known as the â€Å"Big Bang.† On that date, the London Stock Exchange eliminated fixed brokerage commissions. These changes were designed to give London the most open and competitive capital markets in the world. It has worked, and today the competition in London is especially fierce among the worlds major financial centers. Deregulated financial markets and heightened competition in financial services provided a natural environment for financial innovations that resulted in the introduction of various complex and sophisticated derivatives products, in particular in over-the-counter (OTC) derivatives markets with interest rates and equities as underlying securities. While the lever aged nature of derivative instruments poses risks to individual investors, IFM provides scope for a more efficient allocation of risks. Integration After the Second World War, the outstanding ingredient influencing trends in IFM is integration. The boundaries between national markets rapidly became blurred leading to the emergence of a global unified financial market. Banks in major industrialized countries increased their presence in each others countries considerably. Non-resident borrowers on an extensive scale are tapping major national market such as the US, Japan, Germany. Today both the potential borrower and the potential investor have a wide range of choice of markets. There are various challenges from the environment and accordingly the scope and relevance of IFM has increased in recent past. Capital Mobility The international mobility of capital has benefited firms by giving them more financial options which has made international finance more dynamic and complex. Capital moves around the world in huge amount; corporations are free to access different markets for raising finance. The enormous opportunities of investments, savings, consumption and market accessibility have given rise to IFM. It is important to note that in IFM, stakeholders are spread all over the world. This development allows investors to diversify their investment portfolios internationally. In the words of a recent Wall Street Journal article, â€Å"Over the past decade, US investors have poured buckets of money into overseas markets, in the form of international mutual funds. At the same time, Japanese investors are investing heavily in US and other foreign financial markets in efforts to recycle their enormous trade surpluses. Privatization The economic integration and globalization that began in the eighties was picking up speed in the 1990s via privatization. Privatization is the process by which a country divests itself of the ownership and operation of a business venture by turning it over to the free market system. Additionally, privatization is often seen as a cure for bureaucratic inefficiency and waste; some economists estimate that privatization improves efficiency and reduces operating costs by as much as 20 per cent. Free- Trade Agreements And Rise of Regional Economic Blocs The doctrine of comparative advantagestates that everyone gains if each nation specializes in the production of those goods that it produces relatively most efficiently and imports those goods that other countries produces most relatively efficiently. In this vein, during the post-war years, theGeneral Agreement on Trade and Tariffs (GATT, founded in 1947)was established in order to improve trade. It has played a key role in dismantling barriers (tariffs, subsidies, quotas) over the years, as a result of which international trade grew manifold. The financial participation of the traders exporters and importers and the international transactions flowed significantly. It also created a permanent World Trade Organization (WTO), which has more power to enforce the rules. Also, The North American Free Trade Agreement (NAFTA) has give promoted international trade and given it a shape. These advancements put into the idea of FM both domestically and globally. On the regional level, formal arrangements among countries have been instituted to promote economic integration. The European Union (EU) is a prime example. The EU includes 28 member states that have eliminated barriers to the free flow of goods, capital, and people. The EU is one of the most advanced forms of economic integration, a free trade area (like the NAFTA) is the most basic. Recently, however, the euro’s emergence as a global currency was dealt a serious setback in the midst of the debt crisis. It started in December 2009 when Greece revealed its budget deficit, surprising financial markets. The panic spread to other weak European countries, making borrowing and refinancing extremely costly and threatening the nascent recovery of the world economy from the global financial crisis of 2008. This debt crisis revealed a profound weakness of the euro as the common currency: the participating countries have achieved monetary integration, but without fiscal integration. Mea ning that taxation, spending, and borrowing remain under control of national governments. Therefore, a lack of fiscal discipline in one country can become a Europe wide crisis. So, what has been the role of IFM? Even the effective use of IFM could not prevent the disaster. The Rise of MNCs All because of liberalization and those international agreements, we have a buzz word called â€Å"MNC† i.e. Multinational Corporations. In the post WTO regime (after 1999 onwards), it has became pertinent to note that MNCs enjoy an edge over other normal companies because of its international setting and best opportunities with their world-wide. IFM has become an important wing for all big MNCs. Without the expertise in IFM it can be difficult to sustain in the market because international financial markets have a total different shape and analytics compared to the domestic financial markets. A sound management of international finances can help an organization achieve same efficiency and effectiveness in all markets. So far, so good! Foreign exchange risk As discussed above that globalization opened new horizons, but it also brings companies to a variety of risks that they can face while operating in an international arena and in this regard IFM is the only solution to mitigate these risks. One such risk is foreign exchange risk Seventeen years ago, The Bretton Woods System gasped its final breath whereby the present International Monetary System set up is characterised by a mix of floating and managed exchange rate policies adopted by each nation keeping in view its interests. The foreign exchange risks states the variation in the prices of currency will have a tendency to convert a profitable deal to a loss making one. If the only tool you have is a hammer, every problem looks like a nail. The wisdom of this old adage is just as applicable in risk management. IFM provides a variety of hedging techniques to control foreign exchange exposure since it jeopardizes profitability of all firms. They consider any use of risk management tools, such as forwards, futures and options that previously were virtually unknown. Financial innovation has played a role in promoting this unexpectedly good economic performance. At the same time, IFM has helped to raise global growth and to have made the economy more flexible and more resilient. Conclusion The foremost rapid changes in IFM have been the accelerating globalisation and integration. These developments have been fostered by the liberalisation of markets, rapid technological progress and major advances in telecommunications. Further the scope of IFM has widened its horizon with mechanism supported by multilateral trade agencies like WTO- and regional blocks like ASEAN, NAFTA, EU etc and the emergence of innovative financial instruments. In view of globalization and its impact on the economy of the world, it is pertinent to note that the theory and practice of IFM is in consonance with the tax environment, legal obligations, foreign exchange rates, interest rate fluctuation, capital market movements, inflationary trends, political risk and country risk, micro and macroeconomic environment changes, ethical constraints etc. These problems can be managed through proper adaptation of IFM methodologies. IFM is crucial to the success of every multinational business because the increase in complication and challenges for managers. The current scenario and outlook for evolution of the IFM registered sharp deterioration over the last years. To a great extent, the unfavorable environment is a result of cutbacks in net inflows of private capital. Among the factors responsible one could list the slow pace of world economic recovery, particularly in the United States in the wake of the 2007 recession; Ponzi scheme frauds; forecasts of lower business profits; reductions in consumer confidence; and accentuated growth in risk aversion on the part of investors. References Online EBook: Eun−Resnick: International Financial Management, Third Edition I. Foundations of International Financial Management.  © The McGraw−Hill Companies, 2004

Company Aytch: A Confederate Memoir of the Civil War

Writing Assignment : Company Aytch History 101/ Company Aytch is a book that depicts the idealistic memory of a young confederate of the Civil War named Sam Watkins. Some historians articulate towards Watkins having insufficiency of precise facts and sometimes alteration or exaggeration on certain issues. Watkins & Inge, Introduction) However, it is important to appreciate that Sam Watkins was a survivor that has revealed his recollection of the battles as he has experienced them, and although some may believe his memory has some deficiencies he has a real life testimony that cannot be too farfetched from the reality of the life of a soldier during the Civil War. Sam Watkins was born on the 26th day of June on his father’s farm in Columbia Tennessee where he worked during his youth.There is not much told about other work experiences other than Sam working as a clerk in a local store until he enlisted with Company H of the First Tennessee Infantry in the year of 1861. Sam was o nly 21 years old, a young confederate, and at this time many signs of war were uprising between the North and the South. (Watkins & Inge, Introduction). His entry is the beginning of the memoirs told by Sam Watkins, an ordinary soldier, not of any high rank, which indeed gives the reader another perspective of the reality of the battles faced during the Civil War.Furthermore, it broadens the view of the emotional triumph a frontline soldier and what they went through rather than focusing on the higher ranking officers. Watkins tells in great detail his experiences and writes of his historical remembrances years later, but he never hides the fact that he is writing solely on his memory and what he saw. In addition to him repeatedly reminding the reader that he writes of his recollections only, he also reminds the reader that what he writes is true.Furthermore, he encourages the reader to refer to history for other historical facts. Later in the report I will tell of an occurrence tha t gives the reader an idea of what Sam Watkins’ soul is all about and directs one to believe in his testimony of truths. Sam Watkins shares with people so many different experiences during the war that it is hard to write what may have affected him the most. He writes of many things that he has been through like starving, suffering through harsh weathers, the triumphs and losses of each attle; he watched death occur repeatedly, he tells how he could feel the angel of death upon them, he talks of good friends, and speaks of his true love back home, he tells about fears he has, and also the pride of serving. In all of his writings it is hard to believe he can recall so much in great detail and it is understandable for one to question exaggeration or the precise details. For example, Watkins quoted poems, songs, and some speeches.None of these were hard to believe because if his recollection was not exactly word for word it was probably pretty close to the point. This goes for h is details during the battles as well. All in all his character speaks of loyalty to his troops, to his people, to his love and to God regardless of the circumstance. It is apparent that Watkins is affected by the deaths of several friends and leaders in every battle. He makes sure to speak of the men that lost their lives in very high regards.He gives not only the great leaders honor, but he includes the ordinary soldiers with no rank, an extraordinary honor in his book. Also, in giving them the respect by reiterating that these men were good and died for their people and they are now in heaven, Watkins gives explicit detail of how the men were injured and to the extreme they suffered. In doing this he makes the reader value what each man went through and makes their honor that much greater despite the reasons for the Civil War.It appears that he tries to recollect at his best, the names of all he could, but explains that he does not write of the names he is unsure of, in order to keep correctness and credit to the places it was due, as he would not want to discredit any man. One particular incident that seemed to have struck Watkins with much emotion and must have had a huge impact on his soul was the hanging of two spies. Watkins explains he goes to the hanging to see to Yankee spies get hung; soon he realizes the spies were not Yankee men, but very young boys around the ages of 14 and 16.He states this â€Å"I was appalled; I was horrified; nay, more I was sick at heart† (Watkins, p. 74). This clearly makes him sick and reading about the two kids being hung, envisioning this incident is heart breaking. Could anyone imagine being there and watching this happen first hand and not having the means to do anything to stop it? This occasion that Watkins writes about depicts the impact that it had on him plus it shows the severity and harshness of the war.The incident that tells so much about the morality of Sam Watkins is the story of the hog. After Sam a nd a few other men from his infantry ate with a poor lady, the other men killed and stole her hog while Sam was inside talking with her. Sam appears to help with this incident during the escape back across the river, but he truly was not okay with this. This horrible theft weighed on Sam Watkins’ conscience. He could not even eat the hog as he felt guilty for what had happened.Sam then makes a special trip back to see the poor widowed woman so that he could repay her for what they had done. Although, the woman did not accept his offer at first, he insisted on making the situation right (Watkins & Inge, p. 108-110). This is the incident that really shows what kind of things impacted Sam Watkins. It was not only the life and death of the battles of the Civil War he cared and spoke about, but he had values and cared for others. This particular incident opened the readers view to see the honesty and sincerity of Sam Watkins’ soul.Finally the surrender of the Army of the So uth happened and Watkins was free of the physical Battles of War, free to be with his true love. Yet even the surrender saddens him to a degree and has an impact on him as he encompasses all of what took place during these four years of the Civil War from beginning to the end in which he eventually wrote about in the book that was read, Company Aytch (Watkins & Inge, p, 213-214). Reference Watkins, Sam R and Inge, Thomas M. (November 1, 1999) Company Aytch: Or a Side Show of the Big Show. Retrieved November 2012.

Apple-Merging Technology, Business and Entertainment Essay

1. Explain how Apple achieved business success through the use of: a. Information I think, the chief point is market information. In 2000, Steve Jobs found the reality in society that millions of people were using computers and burners to make audio CDs and to download digital songs from illegal online services like Napster. And then, Jobs was worried that he was looking in the wrong direction and he had missed the Mp3 bandwagon. b.information technology Firstly, after Jobs found the market information firstly, he bought the SoundStep from Jeff Robbin, moreover, Robbin and a couple of other programmers began writing code from scratch and developed the first version of ITunes. Secondly, Jobs make iTunes portable. Thirdly, after the ipod was born, Jobs noticed the last key element was missing, online store for buying downloadable songs, and then he achieve it. c.people person’s sensitivity, expert and initiative, for example: No.1 is Steve Jobs, the market information founder, he is a sensitivity man. No.2 are Steve Jobs and other programmers, they are all expert in information technology. No.3 is Join Lin, an initiative man. 2.Describe the types of information employees at an Apple store might require. The consumer’s want , the competitors’ technology and the personal income . 3.Describe the types of information the executives at Apple’s corporate headquarters require. Market information, current trends, product’s benefit and company’s capitalization. 4.How are the two groups above going to obtain the information†¦i.e. what types of systems, IT components, software, etc are needed. â‘  I think, the employees can obtain information from what the consumer or colleague’s say, the local area network in the company and the system of company’s information delivery. They need computer, the software of company’s information delivery and other’s necessary IT components. â‘ ¡The executive at corporate headquarters can obtain information from the various information platform, for example, financial system, market early warning system and ERP etc. They need computer and correlative software. 5.When you think of the Apple brand, what images come to mind? There is no doubt, up to date, Apple is success, in the diversification market, Apple found his own product different from others, and then Apple continue innovating and combining, achieved great success. 6.What kind of Business Culture do you believe exists at Apple? The first one is innovating and creating spirit; the second is combining, I believe. 7.Use your â€Å"Crystal Ball†, to predict what new innovative ideas you believe will come from Apple in the future. It is possible that Apple will make more products in the digital information system, they do not only create music software, but also they can make videotex product, because videotext product is the new trends in current society. 8.From an investment perspective, what do you think of Apple’s future? If Apple continue innovating and creating base on the new trends, I think of Apple’s future is better, maybe Apple will become the biggest sof tware cooperation just as Microsoft and IBM in the world.

The man to discover Alzheimer’s disease was Alois...

The man to discover Alzheimer’s disease was Alois Alzheimer; he discovered it after a patient with an abnormal mental illness passed. Alzheimer’s, also known as AD, is named after Alois Alzheimer and is a continuing loss of brain function that affects thinking skills, such as forming or retrieving memories and judgment. I think that it took him so long to discover that it was a new disease because Alzheimer’s can be so subtle that only a drastic change in the view of the brain can show the outcome of the cells. This disease affects older people however it is not a normal part of aging. AD does not have a cure yet, scientists are however trying to find the root of the disease and control its destructive powers. Currently there is no cure†¦show more content†¦There is usually a way to find out if you have Alzheimer’s, this could be determined either through thorough examination of the cells or understanding of the genetic history of the family. There are some potential treatments for Alzheimer’s that scientists have contemplated such as Zinc and the prevention of a C1q protein. Zinc is critical for the brain and without it neurons can die. As a possible treatment remedy, Zinc can be added to a diet. Also Zn can decline the amount of Amyloid plaques. Recently, Ben Barres who studied at Stanford University School of Medicine conducted a study which involves a protein called C1q. C1q is deemed important because it builds up around the brain where the nerve cells are, this is important because the destruction of nerve cells leads to dementia. C1q is responsible for the elimination of hazardous material and is usually not found in the brain. A study was conducted with the development of an infants brain stating that the growth of synapsis was too quick and there were an abundance of them and something had to get rid of unnecessary synapsis causing a dangerous amount of C1q. Barres is currently working on a possible drug t hat could prevent the C1q protein. With the current curiosity that AD brings on people, I believe that in no time we will have a treatment. My interest in Alzheimer’s stems of the effects it has on an individual and