Economics

Introduction Understanding customer is a concept that revolves around the proper examination of why individuals buy a particular product and their manner of decision making. The entire process that leads a consumer to use or decide to buy an item is consumer behavior. Client behavior related to tourism is essential...

Wealth is the total net worth – value – that an individual or household accumulates overtime. In contrast, income is the money paid to a person in return for the services they provide or the net profit from an individual’s investments. In her book, The Next Millionaire Next Door, Sarah...

Introduction Economic poverty refers to the financial incapacity of various people to afford their various needs due to insufficient finances. Poverty-stricken people can either have relative or absolute poverty. Relative poverty means these people make a particular percentage of the average per capita income while absolute poverty means these people...

Personal computers can be considered to have a largely inelastic demand due to their integration into most people’s personal and professional lives. Though pricing and income levels may vary, computer purchase trends are likely unaffected (Hall, 2022). This is often due to the fact that a myriad of prices and...

President Joe Biden’s American Families Plan would take significant steps proposing tax incentives with more excellent investment in three areas: family and child assistance, education, and tax cuts for middle and low-income families, among other things. Universal childhood education and two years of community college are among the educational elements....

Considering the OECD (Organization for Economic Cooperation and Development), unemployment is defined as individuals over a certain age (commonly 16) who are neither employed nor self-employed but are searching for work during the time frame. The unemployment rate, which is the utter sum of people without jobs as a percentage...

Introduction Globalization is one of the drivers of market integration and income inequality, especially in developing countries. The demand created by globalization enables organizations to seek cheap labor to maximize their profits (CrashCourse a 3:12). The situation in Bangladesh is a good example of the impact of globalization. In this...

Introduction Throughout the modern history of the United States, there have been several notable corporate bankruptcy scandals, including Enron and WorldCom. The former scandal revolves fake holdings, off-the-books accounting, and general financial fraud. The Enron bankruptcy in 2001 was unexpected to the whole business world and left thousands of people...

Globally, there exist four regional trade cooperative agreements, the African Economic Community (AEC), the Asia-Pacific Economic Cooperation (APEC), the European Union (EU), and the North American Free Trade Agreement (NAFTA). The former has the least influence based on a substantially smaller global trade proportion than the rest. Relative to the...

Neo-mercantilism aims to support local industries against foreign entities that have lower-priced goods. However, despite the noble efforts involved in this exercise, countries lose when they employ neo-mercantile policies. The majority of economists and the World Trade Organization (WTO) claim that mercantilism does not work (International Business, 2022). However, countries...

Behavioral economics is the modern approach of evaluating and updating business strategies to optimize them and choose the most appropriate solutions. The term can be defined as an exploration of people’s biases, personalities, traits, and action patterns applied to their buying and consumption priorities (Thaler, 2016). This paper aims to...

Introduction This paper aims to address market development stages and the global trade environment in Ghana and Nigeria. Market research is chosen as one of the categories of business growth. In this context, the strategy supports the concept of products concerning design and introduction to the market. Companies in the...

Introduction Globalization of the world economy has turned the world into a small global village, characterized by the increase in the flow of trade, labor, and capital, contributing to the proliferation of the COVID-19 contagion. The COVID-19 pandemic emerged from China, spreading globally and devastatingly impacted the world economy (Maliszewska...

Misconduct in Banking Financial Planning in Australia is a thoroughly regulated field, with financial planners being obliged to follow numerous government guidelines and requirements. Various reviews have been performed on the Financial Planning regulations in the country, with the latest conducted in 2019 by the Royal Commission on Misconduct in...

Gross domestic product (GDP) is the market value of all goods and services produced in a country for final use, intended for consumption and not for the production of other goods or services. Also, GDP can be calculated as the total income of citizens, companies, and the state for a...

Consumption theory was postulated by Milton Friedman, an American economist in the year 1950. Milton referred to the theory of consumption as a permanent-income theory of consumption. Another economist by the name of Modigliani referred to the consumption theory as the life-cycle of consumption. Both theories of consumption deduce that...

Abstract Youth empowerment has been the priority in the United Nations. Subsequently, it is an important consideration when member countries implement the sustainable development goals (SDGs). The primary focus of this research is exploring the empowerment of youth for achieving SDGs, specifically SDG 4 and 5, as a means of...

Introduction In the contemporary business environment, risk assessment has become a significant step before any new venture. Apart from businesses, individuals are exposed to various home-based risks, such as lighting the gas, handling emergency medical situations, and burglary. Such consideration indicates that risks have a vital role in a person’s...

Nowadays China has become one of the hottest market places all over the world. From the viewpoint of the investors, China seems to be the most potential market with the huge market and attractive economic situation. The apparent result is the increase in number of foreign investments put into China,...

The priorities of a certain government regime dictate its economic policy. Protectionism limits imports by imposing tariffs to promote domestic industries, while free trade reduces barriers to international trade. If the goal is to take care of the country’s citizens, the better economic policy is protectionism because it encourages long-term...

Investment activity is performed mainly under conditions of uncertainty, which arises from a lack of knowledge and randomness. The purpose of appraisal of investment projects is to answer several questions comprehensively (Gaweł, Rȩbiasz, and Skalna, 2017). The first is what the return on investment is, the second concerns what the...

Anti-dilution represents a clause in a contract that provides investors with the right to keep the same percentage of a company’s ownership by buying a proportional number of shares in the future when securities are issued. It allows the protection of the shares and assets of the initial and previous...

Abstract A macroeconomic analysis of Israel helps in comprehending its performance and policies adopted to attain economic growth. Israel’s exemplary leadership, market economic system, and great international trade relationships have helped achieve its current economic status and reveal the potential opportunities for advancement. In addition, the comparative advantage enjoyed by...

Definition of Globalization Globalization entails the developing interconnection of world economies, cultures, and people. This interconnection has been triggered by the border-to-border exchange of goods and services, innovation, individuals, and streams of investment (Price et al. 9). Since globalization involves individuals and businesses’ interconnectivity, it leads to worldwide cultural, political,...

Globally, people are faced with social justice, human rights, and environmental protection issues. In order to address these problems, the United Nations (UN) developed “The 2030 Agenda for Sustainable Development” in 2015 (Yin 3). This framework comprises 17 global goals intended to help the world achieve a more sustainable future....

One of the critical rights and obligations of a shareholder in regards to small companies is his or her right to inspect important company documents. Different countries have different regulations on the subject, but the majority of them allow shareholders to access the documents. However, the difference lies in the...

The globalization of the world economy is a world process that began in the 19th century. It refers to the transition of the world economy to a new level, blurring the boundaries between the states and their unification into one whole for trade and sale of services and goods among...

Pricing strategies are approaches to setting prices for specific goods or services that depend not only on business owners’ intentions but also on external market factors. One of such strategies is price skimming, a practice that deliberately inflates the price of a new product. This principle is characterized by a...

The two most commonly referred to theories on unemployment are the Keynesian and the Classical theories. Classical theorists suggest that full employment is the natural state of an economy, a status which employment will usually return to and remain at. As such, graphically, they would represent the AS curve vertically...

Introduction Impulse and compulsive buying are two expressions that are often misunderstood. However, they exemplify diversified actions in terms of their cause, rate of recurrence and results. Impulsive purchasing is a conventional behavior amongst countless individuals and is more common than compulsive acquisitions. Practically speaking, nearly every person has been...

Shifts in demand are a natural and unavoidable event in a competitive economy, significantly affecting a firm’s strategy and revenue. They can happen because of changes in population, market environment, such as the prices of related goods, or consumer expectations, for instance, due to changing preferences or scientific or technological...

What is Globalization? Globalization is seen as a socio-economic process that results in the growing interconnectedness and interdependence of national economies, political and social systems, and countries’ environmental and cultural characteristics. Globalization is a product of the postmodern era and determines the transition of the world economy to the post-industrial...

Gross Domestic Product or GDP is defined as the “total market value of all goods and services produced in a calendar year within a country”. GDP is widely used as a measure to assess the health of an economy. Thus countries whose GDP is rising are considered high growth economies...

Interest rate risk Interest rate risk is defined as the risk borne by an asset that bears interest (Saunders & Cornett, 2010, p. 201). An example of such an asset is the loan or a bond in the case of financial institutions. Banks are required to manage the risk exposure...

Borrowing and lending loans are among the oldest activities in the world. Regulated and documented lending in banks originated from private moneylenders, who offered loans at both organizational and personal levels. In studying and appreciating the form of borrowing and lending in the current world, it is essential to consider...

Introduction The financial crisis in the US affected most European countries due to their reliance on US banks as their source of debt finance (Brooks, Faff, & Wu 2011). Between 2008 and 2009, the European Central Bank did not pay much focus on sovereign debt despite the global financial crisis....

Introduction Predatory lending refers to the use of unfair, illegal or fraudulent means in the process of advancing a loan to a client. The lenders, under predatory lending, take advantage of their clients and exploit them in unfair manner when they are extending loans to them. Predatory lending can be...

Reserve Bank of Australia is the one that acts as the country’s central bank (RBA). The bank is responsible for controlling inflation, unemployment as well as ensuring the overall economic well-being of the Australian people. The main financial challenges that are experienced by Australian financial institutions include; high banks interest...

The US Restaurant Industry The restaurant industry is among the most important sectors in the US economy. As stated by the National Restaurant Association, the restaurant industry is the largest private employer. The National Restaurant Association projected that in the year 2012, the industry’s sales will increase to $600 billion....

Abstract This paper seeks to explain how interest rate swaps and foreign currency swaps can be used to manage risk. The extensive volatility of the financial markets has resulted to a sudden rise in the increased financial price risks that companies are facing at the present moment. This has therefore...

Multi-National Companies have established subsidiary companies across the world; hence they face the challenge of trading in different currencies. Each subsidiary will most likely record their books in the local currency but when the parent company makes their books they have to consider the conversion of each of the currencies...

Introduction The United States federal budget is a proposal written by the president to the U.S Congress that details how the government plans to fund various projects in the following year. The congressional decisions on the budgets are governed by the federal budget process. The budget committees are responsible for...

Globalization has facilitated international trade; when an organization is considering an international market venture, it should enact strategic policies to facilitate its successful entry. International trade prevails through the operations of absolute and comparative advantage paradigms; however, the trading partners need to have a standard currency of payment. Since the...

Monetary policy is one of the economic tools used by various governments to control a country’s economic growth. According to Madura (2008, p.46), monetary policies are formulated and implemented by the Central Bank. Through the monetary policies, the government is able to control the amount of money circulating in the...

Recovery refers to the ability of any economy to regain its normal growth trajectory after a prolonged period of negative performance. Recovery in economic terms entails reversing the developments that led to negative growth in the first place. However, recovery is most likely achievable where new economic policies are instituted....

Introduction Hochstein defines a Production Possibility Frontier (PPF) as a linear curve projected to illustrate the absolute output possibilities of specified goods and services given an array of resources (2014).This paper presents the hypothetical PPFs of wealthy and developing economies with particular attention to Brazil and China (see figure 1)....

Introduction There are many concepts and activities that may influence economic growth and make it balanced. These are the reduction of income taxes, attention to educating and training processes, privatization, and, what is more important, the improvement of Aggregate Supply. All these are the types of supply-side policies that aim...

Abstract The financial market comprises an important determinant in the economic performance of a country. Investors and institutions are increasingly appreciating the importance of the financial markets in attaining their economic goals. The financial markets are categorised into diverse subcategories. Some of the common subcategories include the secondary and primary...

Theoretical Hypotheses of CAPM The Capital Asset Pricing Model (CAPM) identifies the connection between risk and the rate of return on assets. Normally, the assets are in well-diversified portfolios. It assumes that investors are rational and they choose among alternative portfolios based on each portfolio’s expected return and standard deviation....

Sharpe ratio, risk, return and alpha According to Sharpe ratio, risk and return are directly proportional. For every additional risk, there is an additional return. Sharpe ration is normally used to evaluate the adjusted risk of a portfolio, which can only be achieved if risk-free assets such as government Treasury...

Introduction The United States (US) financial market is a complex system of macroeconomic policies and varying industry dynamics. Several federal policies, federal regulations, and economic factors influence this system. This paper explores the complexity of the US financial system by demonstrating how exchange rates and interest rates affect the financial...

Net Present Value refers to submission of present values of each of the cash flows within the same entity. It usually occurs over time and affects both the incoming and outgoing cash flows. There are several changes incurred in the cash flow system that affects NPV. These changes are dependent...

Introduction In September 2008, Lehman Brothers announced that the bank would file a bankruptcy case. There was anxiety in various places worldwide particularly in America, Europe, and Asian economic circles after the announcement. The employment of over 25,000 Lehman Brothers employees was certainly over with a large portion of fortune...

Cash flows refer to the cash inflow and outflow of a business. When the time factor is introduced and the future amounts brought to an equivalent present amount, the cash flows are said to be discounted. This is achieved by the use of an appropriate discounting rate that is often...

Introduction The World Trade Organization (WTO) is a global organization that is concerned with rules governing trade among nations. The world economy is trending towards globalization. As a result, it is pertinent to form laws that will regulate business activities among all the nations trading internationally. The primary objective of...

Financial statements are used to record financial activities in which a business firm is involved. These statements provide a clear picture of a firm’s financial situation because they show its performance within a specific period. They show a firm’s managers, investors, and creditors a truthful account of its performance. Financial...

Summary Globalization necessitates several emerging trends in business. Foreign direct investment, for example, remains an emerging issue among major multi-national companies venturing into production or other business-related activities in countries away from their regions of origin. Businesses execute such entries into foreign markets purchasing other entities or expanding operations into...

Introduction Standard costs are estimates of the cost of creating a product or providing a service under normal conditions. They are established by considering historical data and motion studies. Standard costs assist companies in planning for production expenses. Whenever Standard Costs differ from the actual cost of production, Management Accountants...

Executive Summary This paper entails a comprehensive analysis of financial markets and institutions. The essay analyses the various types of financial markets. These markets are analysed by identifying and evaluating their characteristics with regard to rate of return and degree of risk. An analysis of various money and capital market...

Introduction Taxation ranks as one of the main sources of funding, which governments require for expenditure and investment needs. It acts as an antidote to aid dependency in many economies, in addition to enabling countries to attain sustainable economic growth. Subsequently, it is imperative for governments to design and implement...

There are several complications in the U.S financial system. Generally, financial system is influenced by many environmental factors, which include the government regulations and the overall economy. The economy, businesses and individuals are affected by the financial markets in different ways. The U.S financial market not only impacts the U.S...

Trends in Banking from 2010 In the beginning of 2011 the four largest banks in Britain were preparing to make public reports that indicate a combined annual profit of £25bn (Griffiths 2011). The increase in profitability appears to have survived the harsh and rigid economic trends are just beginning to...

Introduction Though the impact of Japan’s recent earthquake has not been completely quantified, it is no secret that the country has significantly been economically dented by the natural disaster. When compared to a similar disaster that hit Japan in 1995 (Kobe earthquake), the recent earthquake measured 8.9 while the Kobe...

The banking sector is one of the most sensitive sectors of the economy of any developing or developed nation. This sector comprises of the commercial and investment banks, the central bank governed by the government, the financial markets an all other money lending organizations (House of Commons, 2009, p.2). The...

The world is ever-changing, and we must learn to adapt to these changes. We receive the majority of our oil supply from other countries, predominantly the Middle East. As a nation we rely on these resources from others countries and we often find ourselves at the mercy of these nations....

Introduction Global economic growth is defined as the sustainable increase in the welfare of the economy of the whole world as opposed to that of a state, region, or city. It covers such areas as industrial structure, improvement in public health, reduction in illiteracy levels, demography, and equal distribution of...

“Risk –averse” investors Introduction It is well known that stock market traders in New York, Chicago, London, and Tokyo believe that people who have ‘risk aversion’ traits in their character do not develop into successful traders/investors on the global stock markets. This statement is both true and false for several...

Introduction The recent financial crisis was considered by most economists as the worst since the 1930s great depression (Global Crisis Management Organization, 2009). Many stocks lost value, businesses closed down, people lost jobs, and nations were left in huge amounts of debts. The housing sector was among the most affected...

Outline Definition of financial service regulation. Who oversees the financial service regulation? Financial institutions that need regulation. HM treasury in the United Kingdom. Extend to which retail protection is required in financial service sector. Different approaches to protection achievement and their effectiveness. Conclusion References. Definition of financial service regulation Financial...

Introduction Corporations are the only shareholders with a tax preference for cash dividends. This has led to predictions that corporations will invest in high dividend-paying stocks and use their voting power to increase dividends but in contrast to these predictions, dividends do not increase following trades of large-percentage blocks of...

Introduction This research looks at the strategic industrialization economic system of Dubai. Being a student of IR as well as a citizen of the United Arab Emirates, I ought to have extensive knowledge about the country that I belong to and especially if I am planning to represent my country...

The key purpose of this report is to analyze those factors that can impact the stock market in Saudi Arabia. Furthermore, it is necessary to forecast market conditions in this country on 3-month and 1-year timeframes. Finally, this report will explain the benefits of investing capital into the Saudi economy....

Introduction The US tax system is complicated and thus, there is a need for tax reforms. First we can see that there is a dramatic decrease in individual income tax rates. Corporate income has also declined by half, and tax payers at all income levels have complained of its complexity....

The world is recovering from the global financial crisis that started in 2007; the crisis is believed to have originated from the United States of America mortgage industry. The crisis did not remain within the boundaries of the United States but affected the world in one way or another. United...

SABB was founded in 1978 and started operating after six months in the same soon after acquiring another bank in the Middle East by the name The British Bank (Sabb.com). SABB is a Joint Stock Company that has a strong financial trend which is a custom that extends back to...

From an economic perspective Tax Trends in the EU are modeled on the scope of sovereignty. The argument can be sustained by the fact that each EU member country is allowed to formulate its sovereign tax procedures. Exploring the dynamics exposed in such aspects of taxation as dual-income taxes, it...

The strategic objectives of Zurich Cantonal Bank At the moment, Zurich Cantonal Bank1 occupies a leading position among numerous financial institutions of Switzerland. It is considered to be one of the safest banks in the world. ZKB styles itself as “the bank, that’s close at hand” (ZHAW, p 2). We...

Introduction The situation which occurred in Australian Reserve Bank needs some specific consideration and analysis. The rise of the cash rate seems to be ineffective, still, it is not really so. It is possible to agree that the decision the Reserve Bank Board made in the relation to monetary policy...

Entry threat of new competitors: new firms are more likely to be attracted to profitable markets that have demonstrated the ability to yield high returns. This is likely to result in the falling of the abnormal profit rates towards zero unless the incumbents seek ways and means of blocking the...

In the business world there exist two entities, that is, the seller and the purchaser. The selling party has items and services that are required by the purchaser. In this case, it refers to a situation where the item being sold has been in use before the material day. When...

Introduction Firms make various investment decisions with the aim of increasing profitability. These decisions are usually made after the company has evaluated and selected alternative investment opportunities that are available to them. After evaluating the alternative the company should be in a position to finance project or the investment. Some...

Data given by the National Association of Realtors (NAR) may be erroneous. There is a possibility of exaggerated estimates of home sales, resulting from erroneous over-counting since 2007. Recent data by CoreLogic, which is based in California faults earlier data released by NAR. As CoreLogic reports a 10.8% reduction in...

Introduction The best definition of Interest rate risk (IRR) is the likely impact on an institution’s earnings and net asset values of changes in interest rates. It does arise when the interest rate on an institution’s principal and interest cash flows plus including final maturities, both on- and off-balance sheet,...

Introduction Hong Kong is considered as the Special Administrative Region of the People’s Republic of China. The economy of Hong Kong is characterised by large scale capitalism with urbanisation. The civil system of Hong Kong was established under British Rule. Hong Kong developed wide contacts and investment ties with China....

The paper is a critique of an article titled “Stocks versus bonds: Explaining the equity risk premium” written by Asness, C. S. It was published back in 2000. The article suggests that financial managers are in a better position to understand and comprehend the issues dealing with the relationship between...

Executive Summary Financial management and budgeting are becoming an interesting topic with the increasing public awareness about the roles of the state. This paper analyses financial management and budgeting in a state organization named the Department of Homeland Security. In this project, the mission, objectives, and goals of the organization...

“Quantitative easing” is an approach by central banks aimed at escalating the money, which is in distribution as manifest in the financial system. It is tenable when there is a deflation in the economy leading to reduced circulation. The central banks create an environment where there is increased spending as...

Outline This paper dwells on the topic of derivatives. It describes the derivatives market existing writer, which is Hong Kong. In addition, the paper explains how effective these derivatives are in spreading the risk. Further, the paper is designed in such a way as to first of her a brief...

CAPM is one of the most reliable tools that can be used to determine the investment risks involved in a business venture by analyzing those risks against the expected returns (McClure, 2006). Every trader wants to invest in a venture where there are few risks, but then the risks are...

Financial statements depict the operations of a business entity in a certain period. In most cases, financial statements are used to support the strategic development of an individual or a company by providing information about the financial status of the business entity. The parties interested in such statements include business...

Introduction A credit crisis is otherwise known as a credit crunch or credit squeeze. It refers to a decrease in the general accessibility of credit; it may also be used to refer to an abrupt tightening of stipulations necessary to acquire loans from commercial banks. The reduction in the availability...

Description of Global Financial Crisis World Bank (2008, p.1) posits that developing countries are not yet out of the wood from the global financial crisis. This is characterized by the fall in their GDP growth. Economic growth in developing countries is slowing and still shows signs of dropping even further....

Stock options represent a significant component of employee compensation. Theoretically, it has often been argued that the inclusion of stock options in employee and executive compensation increases managers’ participation thus increasing the market value of the firm’s stock. With the devastating impact of recent accounting scandals in the U.S, accounting...

Introduction The economic strength of the country is affected by both the monetary and fiscal policies adopted by the respective government. Fiscal policy refers to the stipulations laid down by the government about its revenue and expenditure. The fiscal policies relating to interest rate, government spending and tax rate. Economic...

Outline Finance and investment are the most commonly used keywords in the day-to-day affairs of people from all walks of life. There had been no talk among the common men in society about Investment and finance in the earlier time. But, the dimensions of investment have improved over the years...

Banks Several institutions offer financial services to the populace. These include those that take deposits and issue loans (banks), Insurance companies and brokerage firms. The degree of liquidity risks in banks is a result of a balance between assets and liabilities. It is appropriate to acknowledge that in banks liabilities...

There are various forms of risks that usually face small as well as large financial institutions. Historically, the risks facing financial institutions were classified into two: market risks and credit risks. Whereas credit risks were related to how trustworthy the counterparty was, on the other hand, market risks were due...