The Legacy of the Gold Standard as a Medium of Exchange

Introduction An economy that adheres to the gold standard accepts countries’ currencies’ value to be directly linked with the gold reserves that a country holds. Paper money or notes were converted into a certain fixed amount of gold, and therefore those countries that were using the gold standard had to...

Investment Strategy: Principle of Asset Allocation

Executive Summary Portfolio is a collection of investments held by a person or a company. The aim of selecting a portfolio is to achieve a desirable result of return through diversified risk. It will be unwise for an individual, to invest all his money in one project or security, since...

Islamic Banking Features Analysis

Introduction Islamic banking has been growing in popularity in MENA countries as a way of complying with Islamic principles. According to Mervyn and Algaoud (83), there has been pressure among the financial institutions to be compliant with some of the Islamic principles in their operational strategies. Shariah law prohibits charging...

Supply Chains: The Influence of External Factors

Well-established supply chains are an essential part of private and global trade, since they ensure that goods and services reach customers and make a profit for companies. However, various political, economic, technological, environmental, and other world changes affect supply chains and force companies to be flexible in their design. For...

Contemporary Taxation Issue: Green Tax System

Introduction The evolution of a green economy (GE) has become the main concern for many countries. It requires significant law reforms at the local, regional, and global levels to assist in realising the fiscal opportunities, emerging from a change to less polluting methods of manufacturing and consumption, including fresh employment...

“Modeling the Short Rate” by John Hull

Financial researchers are focusing on deriving a model that calculates a Q-measure and P-measure distributions. Q-measure focuses on risk-neutral that has a role in pricing. P-measure focuses on real-world that receives more attention than Q-measure. Real-world measures depend on pricing and risks. The modelling process involves the use of potential...

Global Financial Crisis in the U.S.

The global economic crisis has hit the U.S. with a particular force. It has sharply reduced the volume of production, which led to the breakdown of finances, caused widespread destruction and bankruptcy of industrial, commercial, and financial firms, not to mention mass unemployment. The years of the crisis affected one-fifth...

Growth in Public Sectors of Major Economies Over the Past 60 Years

Introduction The public sector is the main service delivery point for most nations. Citizens obtain basic services from this crucial part of the economy. The control of the public sector is mainly by the government that is in power at any particular time. Traditionally, authorities were charged with the delivery...

Obamacare’s Impacts on Taxes

Obamacare is an act of the government of the United States of America that was formulated and signed into law in order to give affordable insurance services to the citizens. The health insurance act of 2010 has become very popular, not only to the citizens of the United States of America...

Dividend and Non-Dividend Stock Valuation

From the literature, I understand that Ross, Westerfield and Jaffe (2013) support the need to study the merits and demerits of using the dividend growth model to estimate the stock price of a dividend and non-dividend-paying stock. Small and large firms have many growth opportunities, which can use the dividend...

Capital Structure: Review

Capital structure is the balance of the firm’s debt, and equity and international operations allow for diversification and lower the overall risk of a business, which signifies the importance of international capital structure (Loth, 2019). However, different states may apply different principles when calculating the debt to total assets, which...

The Modern Portfolio Theory

The objective of portfolio theory Diversification of risk is a process that captures the reduction of risk through the allocation of investment among diverse financial instruments or categories. A diversified portfolio is accompanied by high returns. Research by Besley and Brigham (2007) shows that diversification helps to reduce unsystematic risk....

Process Selection, Product Design, and Capacity Determination

The process of developing a new product is a complex set of various activities, closely related to one another. The process of product design and selection of technology, based on which production is organized, is an important process in the creation of a product. Product design and capacity determination are...

“When and Why Nationalism Beats Globalism” Article Review

In his article entitled “When and Why Nationalism Beats Globalism,” Jonathan Haidt explains why right-wing populism is increasingly gaining popularity in Western democracies. The article starts with the author citing the rise of Donald Trump in the US and the assortment of right-wing parties in Europe following the June 23...

Diffusion of Innovation (DOI) Theory

When designing a practice change, it is crucial to utilize an appropriate change model to ensure the effectiveness of the process. Change theories can help in a myriad of ways. For instance, a relevant model is beneficial for planning future change by identifying the critical stages to achieve success (Batras...

Political Obligation of the American Citizens

Several injustices, such as racial discrimination and denial of voting rights, persist not only in the United States but also across the globe. Sadly, they weaken moral doctrines and constitutional principles that shape the prosperity of any society. The U.S. Constitution provides various rights and responsibilities to the citizens, helping...

Geographical Diversification and Globalization

Introduction Globalization has led to most business organizations shifting their operations to cover wide geographical areas. With current favorable terms of business operations between countries, it has been possible for businesses to diversify their market by venturing into other markets both locally and internationally (Stiroh & Rumble, 2006, pp. 2131-2161)....

Microeconomics: Challenges Facing Financial Managers

A conventional company is divided into different departments. Each of them faces unique challenges that vary depending on the nature of its processes. One of them is the financial department. Some of the issues faced by managers in this arm of an organization have to do with cash flow, approval...

Japanese Currency Yen Overview and Analysis

The Japanese yen is one of the most important currencies in the world. It is also one of the most popular currencies for trading. During the last ten years, the yen has seen several ups and downs, as the exchange rate to the US dollar has been ranging significantly. Various...

UK Investment Fund, Morris Capital

Introduction The strategic asset of the allocation ranges, as well as the tactical assent of the investment fund is the generally accepted universal aspect of analyzing the investment environment. Originally, this type of analysis is considered to be the most effective tool for defining the realities of the investment environment,...

Consolidated Financial Statements

Consolidated financial statements are a method of reporting finances in a specific scenario. These statements are primarily used by big companies that have multiple subsidiaries or divisions. When a particular company fully acquires another and claims ownership over it, a need to accurately report the assets, liabilities, expenses, and revenue...

The Gulf Cooperation Council: Internal Financial Reporting Standards Adoption

Introduction There has been a growing tendency for cooperation among Gulf Cooperation Council (GCC) countries in the development of economic and financial institutions. The manifestation of the ubiquitous nature of globalisation has increased the need for embracing standardised accounting regulations in order to improve cooperation and enhance efficiency of financial...

1929-1931 Financial Crisis and 2007-2010 Financial Crisis Comparison

Introduction A financial crisis refers to a situation where there is a large loss of value by some financial institutions. Most financial crises are attributable to bank panics or sudden changes in the value of currency making it hard for it to serve its purpose. Many other situations may result...

The Euro and the Sovereign Debt Crisis

As can be seen from the US/Euro foreign exchange rate, the lowering by Alan Greenspan of the US Federal Funds Rate, which was inflationary to the US dollar (devaluation) created an increase in value for the euro. From 2003 to mid 2008, the euro appreciated at a 12.2% compounded rate...

Changes in International Accounting Standards 17

Introduction A lease is a contract enforceable by law which defines an agreement between a lessor (owner of property) and lessee (renter of a certain property). It defines things like the duration of the lease agreement, the amount of rent, and any other conditions defining the lease agreement. When a...

Small Business in an Ideal Capitalist Economy

Today, most of the countries do not possess pure capitalism but a mixture of free market and governmental regulations of the businesses. Owning a business in a mixed economy structure can be very challenging due to government intervention in the economy. In contrast, operating a small business in an ideal...

The U.S. Economic Development: The Significant Periods

Nowadays, America can boast one of the most developed economies in the world. The service sector is an important source of the country’s budget; the U.S. is also a world leader in many spheres of industry. However, the history of the U.S. success is complicated; the country went through periods...

National Transportation and the Economy

Introduction Transportation is integral as part of infrastructure to the economy of the nation as it is required for the numerous sectors of the economy to prosper. All the main sectors of the economy including the service sector, manufacturing industries and agriculture rely heavily on transportation. Its importance is further...

Consumer Behavior During the COVID-19 Pandemic

Introduction The onset of Covid-19 in December 2019 was unprecedented since its spread and impact were not imminent at the time. By March 2021, the world had to shut down; movement restrictions were introduced. Social distance, both partial and total lockdowns mandates were also implemented changing human behavior patterns (Mehta,...

Hotel Industry in Sydney, Australia: Factors Influencing Supply and Demand

Prices of Related Goods Prices on the goods related to any given industry are a factor that influences supply and demand in it. This observation includes the hotel industry as well, and the prices on related goods obviously impact the hospitality industry in Sidney, Australia. In general, the prices of...

Overhead Cost Reduction: The Problem of Reducing Costs

Introduction Overhead is analyzed into three broad groups, these are, production overhead, administrative overhead and selling and distribution overhead. It is important to grasp that although overhead is the same from whatever angle we view it from, the methods of overhead reduction will differ from one group to another. In...

Continental European Model vs. Anglo-American Political Economy

Countries use different corporate governance approaches based on the policies and laws, which inform their economies and business dynamics. In this regard, the Continental European model embraces a broad range of stakeholders. It adopts Latin and German characteristics, focusing on fulfilling commercial activities in a socially responsible manner (Maszczyk, 2020)....

Rebuilding Public Confidence in Financial Reporting

Introduction Historically, financial statements have been the mirror reflecting the financial activities of a company. It is based on this information that shareholders, investors and the company’s board of directors themselves make financial decision regarding the company. The reported information mainly by the auditors allows investors for example to make...

“Unintended Perk of the Online Mattress Boom” by Yang

The key issue that Yang (2019) describes in her article relates to the losses that mattress companies suffer due to widespread at-home trials provided to consumers. Clients using the services of different sellers use the purchased goods temporarily and then return them, which is allowed under the terms of guarantees....

Proposed Tax on Sugary Beverages

A recent debate concerning the proposal of Tax on Sugary Beverages has created a huge controversy and divided opinion. This division emanates from predictable sources. On the one hand, leading manufacturers and distributors of soft drinks have formed a vanguard of natural opposition to the proposed tax. On the other...

Goods Transportation, Distribution, and Warehousing Factors

Supply chain management processes play a crucial role in the profitability of a company. The supply chain procedures are associated with logistics costs and must be reduced by appropriate handling of goods. Managing the supply chain costs to low levels is crucial in maximizing profits of a company. As such,...

The Gold Standard and Currency Unification

Introduction Over the years, businessmen and nations have used gold as an investment and a medium of exchange due to its relative advantages. Gold is less likely to suffer from inflation, thus its price is relatively stable due to its immune to government manipulation and tinkering especially in its pure...

The Federal Reserve System

The Federal Reserve which is also known as the Federal Reserve System or the Fed is the central banking system that is used to manage the financial and banking system in the United States. The reserve was established in 1913 to respond to the financial panic that had affected many...

Defined Benefit vs. Defined Contribution Plans

Introduction In comparison, the number of defined contribution plans has grown in the past few years as opposed to the traditionally defined benefit plans. Additionally, many defined benefits plans have been converted to hybrid plans that incorporate aspects of both the defined contribution and defined benefit (Gale et al, 1999;...

The Effect of Hyperinflation

The article defines hyperinflation as an economic issue associated with a sudden increase in the prices of goods and services, causing pressure to the national budget. The author mentions some factors that lead to this phenomenon, including wars and post-war crisis, the collapse of export markets, and sociopolitical disturbances, among...

Is the United States Earned Income Tax Credit Fair?

Introduction The United States Earned Income Tax Credit (EITC) refers to a government initiative that aims to improve the financial stability of citizens by giving tax refunds to citizens (Cordes, Ebel, & Gravelle, 2005). Individuals who get tax credits retain more of their income. For that reason, EITC lowers the...

COVID-19 Crisis and Its Effects on the US Economy

Covid-19 is a global public health epidemic that has crippled most aspects of human operations, including lives, labor market and corporate functioning. All these upshots have a trickle-down effect on the economy, particularly with the announcement of lockdowns to contain the spread of the virus. Other measures that countries have...

Gas Cost Analysis for Power Generation

Introduction The efficient process of power generation is reliant on the choice of fuel and its cost. The world economy changes rapidly under the influence of multiple factors, fuel costs being one of the most significant determinants. In the field of gas and oil, the costs of oil predetermine the...

Volatility in the Stock Market

The term ‘volatility’ implies price variation, and the reasons for its growth are a tumble or appreciation of prices in the stock market. This topic is closely related to the material of chapters 8-10 and appears to be relevant. In present-day developments, there are multiple reasons for significant volatility in...

Trade Issues and Patterns of Mexico

Introduction Trade is one of the most important elements of a country’s overall economic success. It can significantly influence the federal budget and ensure the financial stability of a state’s regions. Moreover, developed trading relations and a sustained economic situation make a country powerful in different spheres of international collaboration...

Economic Environment for a Construction Firm

Introduction The construction industry is plagued by a lot of difficulties in the UK and other parts of the world. This study mainly focuses on economic conditions affecting construction firms based in the UK. This focuses more on those industries which are trying to expand. Construction firms basically deal with...

Concept of Stock Valuation, Risk, Markets Portfolio Theory

Introduction The paper addresses issues that were discussed and why they are issues of interest to the finance audience. The paper also links the articles to the concept discussed in class e.g. stock valuation, risk, markets portfolio theory, etc. Finally, the paper addresses the math in the article and gives...

Changes in the Global Financial System

Introduction World history has witnessed several spells of dynamic and integrated global growth. At the same time, there had been many instances where the growth spells had ended because of financial instability and geopolitical disorders. There are examples of disturbances in British and French economies because of “social, military and...

Macroeconomic Equilibrium: International Economics

In this paper, I would like to consider the basic model of macroeconomic equilibrium—the aggregate demand and aggregate supply model, or the AD-AS model. Aggregate supply and demand affect the establishment of an equilibrium general price level and an equilibrium volume of production in the economy as a whole (Gerber,...

Hong Kong Market Update Analysis

The global financial crisis and the rise of trade protectionism appeared to influence the position of Hong Kong exports. According to the data provided by the Valuation and Rating Department current economical instability hits residential rents and prices which have shown the biggest drop since last month. Land Holdings of...

S-Corporations and C-Corporations Transition and Taxes

Introduction C Corporations are also known as a traditional corporation, a form of business that is founded as a separate and distinct entity in relation to its owners, once this kind of corporation is formed it can possess its own bank accounts, property, have the capacity to conduct business on...

Portfolio Theory and Capital Asset Pricing Model Relevance

Introduction Investing in the financial markets is very risky and investors face the possibility of losing their money. Risk in the financial markets refers to the possibility that an investor will not get the expected returns. There are some risks which the investor can do nothing about such as recession,...

Why Capitalism Is Superior to Socialism

The modern world is facing a myriad of cchallenges, including environmental issues, severe economic constraints, as well as global health-related threats. All these concerns fuel the discussion of the relevance and effectiveness of the economic agendas countries choose. The debate that involves comparing capitalism and socialism seems relevant these days....

Atlantic Bubble as an Economic Initiative

Introduction Since November 2019, different regions across the globe have encountered numerous challenges due to the ongoing coronavirus disease of 2019 (COVID-19). Governments and local agencies have considered past case studies to implement economic strategies that have the potential to minimize the impacts of the imposed travel restrictions and lockdown...

Affect of Bond Prices in US Sub-Prime Mortgage Market

Introduction A bond price is the total amount of money paid to purchase a bond. The prices of bonds are negatively related to interest rates meaning that as interest rates increase, the bond prices will fall and when interest rates fall, the bond prices will increase. When interest rates rise,...

The United Arab Emirates and International Trade

The United Arab Emirates (UAE) has become one of globalization’s most prominent economic success stories thanks to its diversified economy. Oil profits and long-term pro-business policies have allowed UAE to create a robust infrastructure that supports the development of non-oil sectors like manufacturing and transportation and more fruitful participation in...

Investing in Real Estate in Germany: Factors to Consider

Assiduous business professionals will agree to the fact that a multiplicity of factors needs to be considered before any decision to invest at an international level is made. Business entities do not exist in a vacuum; they affect and in turn are affected by various cultural, geographic, physical, legal, political...

The Us Dollar – Where Do We Go From Here

It was after World War II that a plan was formulated in Bretton Woods by the developed countries of the world to link all foreign currencies to the US dollar which implied that the exchange rate of all currencies will be fixed to the US dollar. The dollar was supported...

The Effect of Covid-19 and H1N1 Swine Flu on Cultural Industries

Introduction The COVID-19 outbreak has brought the entire world to a standstill in a matter of mere months. The new virus has negatively affected the major economic sectors. Those of them that rely on travel and gatherings of people such as tourism and entertainment have arguably been hurt the most....

Fair Market Value Overview and Analysis

Introduction Financial Accounting Board issued a statement permitting the use of fair value measurement for business as a measuring attribute but some entities such as the banking industry suspended the application on the basis that FABS 157 contributes to the current credit crisis. The application of this measurement would change...

Dividend Payout Policy

In this specific case BP is slashing it dividends due to environmental recovery operation in the Gulf of Mexico. The originator of the theory of “Dividend Payout Policy” Miller and Modigliani had the following assumptions in the theory (Miller and Modigliani 1961). The market structure is of Perfect competition. In...

Capitalism in Business and Modern World

The current world runs and operates within the capitalist theory and practice. Many countries have greatly benefited from the established globalization model and continue to build new ways of advancing their intertwined and interdependent economies. However, recent events relating to financial, environmental, and societal problems arising around the globe have...

The Aim of Annual Report in the Company

An annual report is a summary of all financial operations of a company and includes detailed information about its assets, loans, generated revenue, and market value of the company. An annual report serves as a financial statement that describes how successful the company is, and must be accessible to the...

China as the New Idol for Emerging Economies

China is the new idol for emerging economies because it has been able to show that fast-paced economic growth is possible. Western countries have urged that democracy and equal political rights are the prerequisites of prosperity. China has demonstrated that with state-controlled capitalism, it is much easier to solve socio-economic...

Limited Liability Company: Advantages and Disadvantages

The limited liability company is a comparatively new type of business entity that remains popular because of some benefits that arise from the existing regulations and legislation. There are several advantages that explain its topicality and its consideration as a beneficial option. First, it suggests special pass-through tax treatment that...

Collecting Consumer Data as a Way of Improving Businesses

For developing and keeping businesses afloat, one cannot ignore market intelligence. It concerns information about the market where the company in question operates, including its customers, trends, and competitors. A comprehensive analysis of these elements defines internal goals and has a significant impact on the business’ prosperity and success. Yet,...

The Role of Government in the Economy

The 1930s were one of the most challenging times for America. The economic crisis and recession resulted in the emergence of 15 million unemployed workers (Patel 2016). The scope of the problem is proven by the fact that this period was called the Great Depression. For the first time in...

Money Supply in the United States

Introduction The economy of most countries in the world is based on the exchange of money in the market. There are few states left that rely on exchanging goods, or barter economy. Currency, in its different forms, is a part of everyday life for many people as they use it...

The Fearful Rise of Markets Analysis

The global financial crisis that gripped the world economy in 2008 and 2009 can be said to have been related to the Shanghai Surprise that sparked 80 years ago when the Shanghai stock exchange had a great fall arousing a global crisis. In this case, the value of currencies is...

High and Low Involvement Purchases

A consumer’s or buyer’s decision process can be categorized into high and low involvement purchases, where the difference is manifested in a number of factors. High involvement purchases mainly occur when a person buys something complex or at a high price. In rare cases, it is also attributed to acquisitions...

Human Rights and International Trade

Abstract There has been ignorance of trade policy and the working conditions of employees until recently when people discovered that trade policy affects peoples’ work. The other form of ignorance was in the international trade formulation or policy where people did not see the relation of international trade and human...

Stock Market Investment Analysis

Investors are also advised to study other companies operating in the line of their preferred company. This is another alternative for predicting the sustainability of the company as the future of the company is determined by its capacity to withstand competition and continue making profit even in a competitive environment...

The U.S. Trade Balance and China Trade War Challenges

Introduction Over the past two decades, there has been an active growth of global imbalances, manifested in the deficit of US foreign trade and, at the same time, in the large positive balance of many developing countries. Leaders of the modern world like the USA, as well as developing countries,...

Financial Reporting for Cadbury plc

Fair and true view The idea of a true and fair view means that the financial statement shows the true economic position of a company. The accounts are said to a true and fair view position when the opinion of the auditor is positive. The auditor considers the materiality of...

Investments and Loans Practical Insight

The ability to dispose of money and other resources in a proper way predetermines the wellbeing of every person. One might have 1,000 dollars and turn it into the extensive network of manufacturing facilities, while another person might lose the whole number of millions of dollars without an understanding of...

World Organisations and the Economic Outlook

Countries of the world, especially the larger economies, are passing through one of the worst economic crises since the Great Depression of the 1930’s. The global forecasts according to the major world lending bodies like IMF, WB and other credit agencies are that this may take more time to stablise,...

Trade War Between the US and China

There is a continuous conflict between China and the US, which is expressed in setting tariffs on one another’s products. In 2018, President Trump imposed tariffs on goods exported from China, stimulating Americans to buy local products, and this policy change became a significant trade barrier (Liu & Woo, 2018)....

Sustainability: How Companies Can Contribute to Saving the Earth

The concept of sustainability is not recent, having appeared about environmental problems in the 20th century. It refers to maintaining the ecological balance in the world to save the planet and the future generations’ prosperity. Corporations have been taking advantage of the Earth’s resources for too long so that only...

Impact of Brexit on the United Kingdom Economy

Introduction The U.K.’s exit from the E.U. also marked a transition in its economic relationship with the bloc. The country intends to shift from close unification and co-operation with its neighbors and keep options of possible reopening opportunities for negotiating direct trade agreements with non-EU member states. The U.K. is...

International and Traditional Trading Theories

A trade war is a situation in which countries seek to harm each other’s economies, retaliate against each other by imposing import restrictions and other methods. The imposition of a tariff on imported products makes exports unprofitable for the second country-party to the conflict. Also, it increases the competitiveness of...

Meiji Holdings and General Mills Financial Statements Comparing

Introduction The food manufacturing and processing industry have become one of the biggest sectors in the business world. This has been greatly influenced by the increasing demand for processed foods in the current busy world where people have little time to spare for cooking. Urbanization has further influenced consumer preference...

Budget Plan of Smithville

Facts Summary The case study on Smithville’s budget issue indicates that the city requires improved approaches to plan a balanced solution for the next fiscal year. The provided information suggests that a significant number of businesses have left the town, causing disruptions in tax revenues. The situation damages public expenditures...

Free Markets and Pyramid Schemes

Introduction Different scholars have presented quality and practical ideas that can guide governments and investors to make evidence-based decisions and pursue their economic goals diligently. Milton Friedman argues that free markets are essential since they allow exchange to occur whereby the involved parties benefit in a symbiotic manner. Without consideration...

Business Cycles and Economic Outlook

Introduction According to Mullineux, (1984) economic growth and development are an integral part of a healthy economy. The analysis of the economy’s health requires the use of economic indicators. Economic indicators are classified into different categories. These include; the leading economic indicators, lagging and coincident. This classification helps in the...

International Finance and Globalization

The exchange-rate determination of any country can be determined using theories such as the purchasing power parity, the balance of payment approach and the monetary and Portfolio Approach. A majority of the countries have now adopted the theory of purchasing power parity as a way of calculating the rate of...

COVID-19 Pandemic and a Globalized Economy

I never considered the fact that globalization can have major downsides because open markets and free trade always seemed to be the only way towards prosperity and economic growth. However, the current COVID-19 pandemic exposed the biggest vulnerabilities of a globalized economy. In such unstable conditions, it would be presumptuous...

Comparative Analysis of Net Income and Cash Flows

The purpose of this paper is to analyze the differences between cash flow and net income comparing two years of functioning of the company in 2008 and 2009. The first line of the table is an illustration of the fact that net income raised by 1.3 in 2009 about the...

Newmont Mining Corporation: Analysis of Risk and Return

Performance of the stock The graph below shows the performance for the stocks of Newmont Mining Corporation and Fossil incorporated as well as the market. It shows that Newmont Mining Corporation was doing well in the market as compared to Fossil incorporated. Both their performance is in upward trend apart...

Finance, Currency Alternatives, and Money in the Bible

Nowadays, most people see money and currency as interchangeable concepts. However, throughout history, many societies employed things other than currency as a medium of exchange. Hence, any means of payment can be defined as money. Other functions of money include being a store of value and a unit of account...

Long-Term Economic Growth in the East Asian States

The economic status of East Asia has increased drastically in the past few decades. Most nations in the region can currently be compared to Western European countries. Foreigners are lured into the region to seek better living standards which they are unable to experience from their native countries. Although immigrants...

Accounting Process and Financial Statements

Introduction, Review of accounting Process and Financial Statements Generally Accepted Accounting Principles (US GAAP) US GAAP is the generally accepted accounting principles followed by companies operating in USA and or listed in the Wall Street exchange. It involves enormous volume of standards, interpretations, opinions and bulletins, formulated by the FASB...

The Change in UK Pension System

Introduction The UK pension scheme started as a non-contributory testing scheme which began in 1908 and established under the Old Age Pensions Act (Bozio 2010, p. 7). This system later developed into a contributory scheme and enforced under the Widows, Orphans and Old Age contributor pensions act of 1925 which...

The Risks of Currency Exchange

The exchange rate The exchange rate between the U.S. and Japan might be defined as flexible rather than fixed since the values of the currencies change daily. According to the website of The Federal Reserve, on June 8, 2020, 1 U.S. dollar cost 108,46 Japanese yen, while on June 12,...

Technological Advancements and Job Growth

Advancement in Technology has, to a larger extent, eliminated different forms of jobs in the recent past. Job automation technology coupled with globalization has been the principal force behind the moribund wages together with diminished prospects of most workers around the globe. Within the next 25 years, job growth is...

Community Development Financial Institutions

Community Development Financial Institutions (CDFIs) are specific community-based financial institutions that aim at the promotion of the economic development of individuals by providing loans, services, and consultations to people and communities that are not able to get help from traditional financial intuitions because of the inability to meet strict demands....

United Kingdom-Ghana Economic Growth Disparities

Introduction The economy of a given country will influence the experiences and lifestyles of its citizens and how they address emerging challenges. Nations will have diverse rates of growth that are determined by various factors, including productivity factor and the rate of growth in the available triggers of development. With...

Globalization as a Phenomenon and Its Impacts

Globalization is a phenomenon characteristic of the present-day world, which has been made possible due to the development of communication technologies, especially the Internet, and multifaceted relationships among countries. This process is generally understood as “the transformation of economic and cultural structures into a single and universal world” (Marifovich, 2019,...

Competition Within Political Monopoly Theory

The article Two Theories of Monopoly and Competition: Implications and Applications bases the discussion on the claim that monopoly makes sense on the foundation of the political monopoly theory. In other words, Simpson suggests that monopoly exists only when the government applies force so that one or a couple of...

Concepts of Debt and Equity Relations

Financing decisions are some of the major decisions that the management of a company must make. There are two sources of capital for any company, they are debt and equity financing. According to Gotthilf, (1997), “Debt financing; a company acquires new capital by borrowing from external sources i.e. by paying...

Overview and Analysis: Texas Budget

The necessity to plan the budget is evident and undeniable, especially in conditions of democratic states. It not only helps to arrange the possible and predicted expenditures effectively and organize saving accounts, but also contributes to the trust in the government from the population (Senate Research Centre, 2017). It is...

Diversified Investment Opportunities in Hong Kong

Introduction Hong Kong economy is characterized by diversified investment opportunities. It is considered as a chief fund management centre in Asia and thus there exists in this country a high concentration of fund managers. The entire investment operations in the country are under the strict guidelines and regulations of the...

Hedge Funds and Financial Markets in Africa and USA

Introduction This paper investigates issues involved in financial markets in both Africa and North America and what is fast becoming a global economic village as countries are becoming interconnected and economies becoming more and more converged. Financial markets in North America are more juxtaposed and epitomized than anywhere in the...

US Withdrawal from Trans-Pacific Partnership

Introduction The Trans-Pacific Partnership (TPP) was central to President Obama’s strategic pivot to Asia. The trade agreement was signed by twelve Pacific Rim countries, including the United States, which together covered almost 40 percent of the world’s economy. The TPP generated a great deal of controversy: while its proponents predicted...

Personal Finance: Professional Financial Planner

Abstract Investments are an important part of financial planning. When looking at investments there is a need to examine the different options available to people. Different people have different investment needs. The investment option chosen should address the specific needs of the investor. For example, there is the case of...

Investment: A Shift in the Financial Markets, Credit Derivatives

Introduction Over the past few decades, the financial markets have witnessed rampant product innovation. One of the reasons for this shift arises from increased demand for investment by both individual investors and institutional investors. A large number of investors are considering financial assets as a viable investment destination. The banking...

Chinese Currency Growth in Value: Exchange-Rate Determination

Introduction The Chinese currency (Yuan) has been recording a relatively strong performance against the US dollar. Recent data from the year 2007 has indicated that the exchange rate between China and US has been fluctuating with China gaining in most of the cases. At the beginning December 2007, the Chinese...

”Money Supply” Article by Enam Ahmed Analysis

In this article, Enam Ahmed explains why central banks should use the Divisia approach to measure the effectiveness of the monetary policies. He argues that while the concept was developed almost a century ago, it remains a viable alternative to the tools used in modern economics. The idea to employ...

Held to Maturity Accounting Investment

Accounting processes demand that companies categorize any investments or funds in equity securities or liability when they are acquired. These investments bought particularly equity securities can be put into custody until they mature, held also for buying and selling, or accessible for the transaction. Held to Maturity is the ability...

Senator Chris Dodd’s Finance Bill Key Points

Introduction The financial crisis that traces its way back to 2007 led to the collapse of large financial institutions and prompted national governments to bail out many from imminent collapse. The crisis affected other sectors of the economy like housing which led to the suffering caused by evictions and foreclosures....

Housing Stability Task Force Recommendations in Texas

Texas has been known as a place where real estate is cheap, and the cost of living is lower compared to other states. However, this reputation has been deteriorated by increasing property prices, especially in large metropolitan areas, including Houston. Since a significant portion of the state population resides in...

Plotting Demand and Supply: A Reflection

Understanding the correlation between demand and supply is one of the fundamental requirements for gaining competence in economics. The specified correlation represents the primary ratio that defines the emergence of new companies, the choice of business strategies, and the changes in communication approaches. Therefore, determining the demand and supply curve...

Multijurisdictional Tax Planning

The choice of jurisdiction to which taxpayers, individuals, and business representatives resort may be based on several principles. According to Weinreich (2016), they include selecting jurisdictions with minimum tax audit requirements and an opportunity to choose tax rates for the totality of taxes. In other words, the possibility of giving...

Factors That Led to an Increase in Property Prices

Recently, there have been discussions on the behavior of the housing market in the United States. The common issue is whether prices have risen too high and the factors leading to the situation. According to Schelkle (2018), housing prices between 2002-2005 exceeded individuals’ actual purchasing power, resulting in more people...

Revenue Management: Term Definition

Introduction Pastry World Ltd is a company that is engaged in the sphere of semi-prepared and preserved foods. Although pastry is not the key component of a ratio of an average human, high-quality pastry is highly valued all over the world. The paper aims to analyze the revenue statement of...

The China-United States Trade War

During the trade war between China and the US, the former seeks to promote lower tariffs in international trade. China is currently lowering tariffs on other countries to find new trade partners and enhance relationships with existing ones. This paper provides information on trade barriers and the ways the countries...

The Theory of Capitalism: Hayek’s Arguments

The Authors’ Arguments Friedrich Hayek strove to defend traditional concepts of morality in economics and fought the progressive representatives of the new era who sought to destroy the classical canons. In his book, he compares rationalizers to Christians who tolerate human sinfulness but do their best to prevent it (Hayek...

Diamond-Water Paradox

The concept of the value of goods was one of the most actively discussed topics by economists in the 18-19th century. In “A Study of the Nature and Causes of the Wealth of Nations,” published in 1776, Adam Smith voiced the question that would later become known as the diamond-water...

The Role of Investments: Analyzing the Market Situation

For an investor, the ability to analyze the market situation to assess financial risks and get the most out of investments is critical. This requires careful analysis of interest rates, including for government bonds. First of all, it is necessary to remind that bonds traditionally mean securities issued by the...

The Problem of Inflation: Crucial Aspects

Of primary importance is the recognition that inflation is not an unnatural or harmful mechanism for a country’s economy. Certainly, from the point of view of an ordinary citizen who pays taxes and gives their private money for goods, it may seem that the absence of pre-election inflation or even...

Consumers’ Attitude towards Slave Labor

Large retail markets such as Walmart, H&M, and Zara are well-known to provide the whole population with affordable clothing. Textile factories need a lot of workforces to cover the demand of the customers. Unfortunately, not all employees are paid fairly, and even worse, are being forced into labor. According to...

Raising the Minimum Wage Research

Opinion on Raising the Minimum Wage From a personal viewpoint, increasing the minimum wage is great for the continued protection of workers against unduly low pay. However, this plan works best if the salary floor is set based on supply and demand for labor as opposed to other factors such...

Economic Measure of United States Economy’s Data

Consumer Price Index (CPI) The current indicator is 255.77 (May 2020) (United States Consumer Price Index); a monthly parameter (255.90 in April). The decline is caused by the current epidemiological situation. The quarantine regime has led to economic difficulties. Unemployment Rate The current data is for June 2020 – 11.1%...

A Specific Criteria for the Selection of the Vendor

I wanted to notify you of the results of my investigation on specific criteria for the selection of the vendor. Choosing a vendor is one of the critical problems in managing the procurement of material and technical resources and services. From the variety of potential suppliers of goods and services,...

Globalization and Economic Inequality

The debate on the issue of economic inequality mitigation has been one of the central aspects of global discussion for decades. The primary concern of such an argument has always been based upon establishing a direct link between the process of globalization and an increase in the gap between average...

Zero Based Budgeting in Municipalities

Introduction Zero-Based Budgeting is an operational planning and budgeting process that requires managers to justify their entire budget request in detail from scratch. Zero-based budgeting is that technique of decision-making that is the inverse of the current traditional working process. In the standard traditional incremental budgeting, to which ZBB is...

Protectionism in East Asian Countries

Protectionist measures are policies enacted to safeguard domestic industries from competition with foreign firms. They are executed by introducing subsidies, trade tariffs, import quotas, and other trade barriers on imports from foreign business competitors. Remarkably, nearly all typical economists concur that free trade is essential for the thriving of the...

Public Housing in Lower Manhattan

Introduction This is a project aimed at describing and discussing the conditions of public housing for families of different classes in New York City. The selected areas are intended to represent the living conditions in the entire City. The foundation for this project is the hypothesis that the living conditions...

The Investment: Risk and Return

In any investment, risk and return are most important to consider. From the table below, the risk shown can be diversified away by increasing the number of securities is the specific risk of any stock. The market risk is the risk related to Market-wide factors such as interest rates, inflation,...

Americanization of the World’s Cultures

Introduction Culture is an integral part of human life and one of the principal characteristics of every country. Its evolution is conditional upon international processes collectively known as globalization. Cultural globalization is considered as “the geographic mobility of cultural products and influences across national borders” (Purhonen et al., 2019, p....

Stock Market Values and Stock Repurchases

The management of any large organization implies the control of its assets and shares. By issuing new stocks, redistributing, and repurchasing old ones, it is possible to regulate the financial position of the company and change its policy depending on the current economic situation. However, there is the possibility that...

Tax Planning for Executive Compensation

The efficiency of executive compensation for shareholders is something that boards of directors and companies strive to achieve by maximizing their tax deductibility. The tax code (Internal Revenue Code) includes several provisions that apply to executive compensation such as Tax Code §162(m) – Deductibility of Executive Compensation and Tax Code...

Homeownership as the American Dream

Purchasing a home is often challenging as buyers can encounter many unforeseen issues, especially if they do not research the market, the seller, or the property’s history. Moreover, real estate is not only a place for living – it is also an investment opportunity. Thus, it is vital for one...

Ford Motor Company: Cash Flow Statement

Introduction In addition to an income statement and a balance sheet statement, a cash flow statement is used in order to conclude regarding the generation and distribution of cash in a company. The analysis of this statement is important to examine possible changes in the cash flows related to a...

Economic Growth of East Asian States: The Impact of Foreign Workers

In recent years, there have been increased levels of international labor migration in various nations. Eastern Asian countries, such as Thailand, have seen a considerable surge in migrant workers, raising interest in individual nations’ impact. Walmsley et al. (2013) mention that immigrants comprise people with varied skill levels. He further...

Hospital of Saint Raphael: Financial Analysis

Introduction The following financial statements ratio analysis report is based on the available financial statements of the Hospital of Saint Raphael for the years 2004 and 2005. The comparisons will be made with the financial information for the two years. The analysis will be based on the ratio of the...

Making Rental Housing More Affordable in Toronto

Introduction Issue The city of Toronto is Canada’s financial capital and a major business hub that attracts not only the local Canadians but also many people around the world. It is one of the most attractive destinations for people because of its improved transport and health infrastructure, high levels of...

Ford Motor Company’s Present Stock Value

Trend of Ford shares for the last five years is shown below. Based on the trend of the graph below, I will state that the stock price was fairly stable with little fluctuations except during the period of the financial crisis. From the trend shown below, I will state that...

The Sources of Tax Revenue in the US

Taxes represent involuntary charges imposed on people or companies and controlled by a government agency, whether local or national, to fund different operations within the country. From an economic perspective, taxes fall on the one who caters to their burden, be it an establishment such as a business or consumers...

What Aspects Investors Should Consider in Starting a Business?

Background to the study The concept of entrepreneurship is increasingly being appreciated by investors in an effort to maximize their wealth. According to Kuratko (2008, p.9), the financial school of thought in relation to entrepreneurship asserts that investors seek for growth of their capital and hence the emphasis on entrepreneurial...

Application of Consumer Behavior: A Guide for Marketers in the Hospitality Industry

The current report aims to explore the different ways in which consumer behavior may be applied in hospitality business marketing. Marketing as a whole implies the utilization of a set of methods and strategies to facilitate demand and ensure clients’ favorable activity. Since the hospitality industry mostly deals with services,...

Nominal Anchor: Monetary Targeting and Inflation

Introduction Nominal anchor is the behavioral regulation used by Central Banks on the verge of alleviating nominal variables such as a country’s general price level. To be more precise, these mechanisms are adopted to check on either deflation or inflation in the country. The commonly used nominal anchors by the...

Towards a Successful Personal Income Tax System in Hong Kong

Introduction The primary purpose of any form of taxation practiced across civilizations the world over is to raise revenue needed to finance public services. But there exist numerous tax systems that can be used to achieve this noble objective, including property tax, personal income tax, inheritance tax, sales tax, and...

Purpose and Impact of FDIC in Birmingham, Alabama

Federal Deposit Insurance Corporation (FDIC) refers to a self-regulating national agency that insures thrifts and deposits in the US banks if a financial institution fails. The agency was established in 1933 to promote a stable financial system and maintain public confidence by encouraging effective and efficient banking practices (Failed Bank...

Coronavirus vs. the Great Depression for Economy

Also known as COVID-19, coronavirus has significantly changed the whole world. Political, economic, social, and health care spheres witness essential adverse effects, while both developed and developing nations suffer from the pandemic. This state of affairs demonstrates that it will take much time and effort to recover from this situation....

Measuring Inflation: Article Analysis

Problems of Measuring Cost of Living Fluctuating in a seemingly unpredictable way, inflation rates are shaped by a range of factors, one of which is the change in the cost of living. However, measuring the specified characteristic is also quite difficult due to the multiple variables that have to be...

The Dividend Puzzle – Retention vs. Distribution

Introduction and background details Dividend The dividend is a taxable payment declared by the company’s board of directors and is distributed among its shareholders. This distribution is out of the company’s earning or retained profit. Dividends could only be paid from the amount of profit that the company has made...

Hong Kong’s Tax System

Introduction Any country will adopt a particular tax system as a way of solving most of the social and economic problems faced by the nation. Therefore, the major purpose of the system will be in raising revenue for use in improving public services and infrastructure which all the people will...

“Doughnut Economics” Book by Kate Raworth

Kate Raworth’s book “Doughnut Economics” (2017) opens up the reader’s mind to the new possibilities within the modern world of economics. The author shares intriguing insights about the global market and the economic opportunities that individuals, entities, and the government should consider in their quest for returns on investments (Raworth,...

Globalization and Competition: The USA, Western Europe, Japan

The leading tendency of globalization is its presence even in those countries where other trends of the current world economy are weakly and hardly noticeable. According to Martin et al. (2018), “it is a complex admixture of different, though interrelated, historically evolving developments and transformations—economic, technological, cultural and social” (p....