Economics

Hong Kong Transitional Housing: Community and Social Cohesion

Challenges to Social Cohesion Environmental health is a significant concern for public housing, especially in challenging conditions. Everything, from sanitation to safety, influences well-being and creates barriers to social cohesion in a community. Any sort of public or transitional housing is usually affected by a lack of care for the...

The U.S. Economy Impact on Transportation and Logistics Management

Abstract This paper is related to observing the effects that the economy of the United States of America has had on transportation and logistics management during the last two years. The paper focuses on the modern trends of the economy of the United States of America, considers international trends that...

Graphic Processing Units (GPUs) Crisis

A sharp rise in the rate of cryptocurrencies led to natural consequences – the rush demand for graphic processing units (GPUs) that can be used for mining resulted in their shortage. Moreover, high-performance GPUs have completely disappeared from the open market, severely damaging different industries such as gaming and designing...

Economic Downturn in Africa (E.G, Ghana)

Executive Summary For one and half year, the global economy has been experiencing an exceptional crisis for long term. Starting from the housing market of the USA as a crisis, it almost immediately spread out as a financial crisis of huge proportions in the mortgage market and by collapsing, the...

Economic Strategic Triangle: China, Hong Kong, Taiwan

Executive summary China’s rapid economic growth China has an exceptional position the today’s world’s economy. There are several reasons for what makes the Chinese economy unique. These are the rapid growth rate, the characteristics of the Chinese economy and how china’s economic reforms resulted in increased productivity despite government control....

Credit Risk Management in International Banks

Introduction In the current global finance market, the issue credit risk management has become very important as banks try to ensure that they are not dangerously exposed to bad debts that may affect their sustainability. The 2008 global financial crisis and the credit crunch which followed created pressure among international...

Nigeria’s Economic Growth

Introduction The World Economic Forum identifies Nigeria as one of the big five economies in Africa. The country has a gross domestic product (GDP) of $448.10 billion in 2019 (African Development Bank, 2020, p. 6). Nigeria’s growth has materialized into an economic powerhouse despite its challenging political environment. It is...

China’s Role in the World Economy

There are a number of expectations placed on China both from within its borders and from the world at large. Having established itself as an industrial economy in the early 1980’s, china has become an important source of goods for both its domestic and foreign markets. As a result china...

The Purchasing Power Parity Theory

Introduction PPP or the Purchasing Power Parity is a theory that is used to determine whether the exchange rates between currencies are equal when the purchasing power is equivalent in each of the two countries compared. Basically, it depicts the clarification between the fairness of how exchange rates are calculated...

Capital Structure Theories: Critical Assessment

Introduction The modern theories about capital structure have gained momentum since the groundbreaking 1958 article written by Modigliani and Miller (hereafter, MM). Before the issue of the article, there was only a vague knowledge of the real consequences of debts and equity problems for the capital structure without any analytical...

The Economy of Energy in the UK

The four main types of the market structure include perfect competition, monopolistic competition, oligopoly, and monopoly. There are different economic structures that an economy can adopt, but the four main structures are the perfect competition, monopoly, oligopoly, and monopolistic competition. These structures of economies exist in the real world, except...

Contemporary Economics: An Applications Approach

Introduction Price elasticity of demand means the extent to which the demand of the commodity would change if it price is altered. The relationship between the price elasticity of demand and slope of demand curve is an inverse one i.e. the greater the gradient of the curve, the lower the...

Oil Price Shocks and Macroeconomic Impact on the UAE

Introduction The economic dependence on oil-derived fuels has made global economies vulnerable to economic variability. This commodity has intrinsic price dynamism and hence the reliance on it as a major economic sustainer has proved to be a major macroeconomic challenge (Mina 384). The demand and supply of oil have historically...

Net Present Value: Investment Flows

The concept “time value of money” is based on the principle that an amount of funds costs more at the current moment than it may cost in the future because money can be invested and bring profit (Lane, 2017). This concept lays the foundation for the economic appraisal of investment...

The Ratio Analysis of Banks

Introduction The purpose of this report is to conduct ratio analysis to evaluate the performances of Abu Dhabi Commercial Bank (UAE), Commercial Bank of Dubai, Emirates NBD (UAE), First Gulf Bank (UAE), and Union National Bank over a period of eight years (from 2008 to 2015) with regard to the...

Abundant Natural Resources as Curse of Middle East

Oil exporting countries often rely solely on oil revenues, which is especially common in the Persian Gulf countries. Fluctuations in oil prices depend on many factors, both institutional within the country itself and on the policy and volumes of other exporters’ oil production. For countries which rely solely on oil...

Credit Rating Agencies and Financial Decision the Investors

Introduction Credit rating agencies refer to companies which assign credit ratings for issuers of debts and the debt instruments. They can also provide credit ratings to the servicers of the underlying debt. The issuers of securities include companies, state and local governments, special purpose entities as well as governments which...

Financial Statement Analysis of Walmart and Target

Introduction Purpose of the paper This paper will provide a critical analysis of the financial and operational performance of Wal-Mart Stores, specifically for the three fiscal years 2011, 2012 and 2013. In addition, the company’s financial and operational performance will be viewed in comparison with another corporation- the US-based Target...

Foreign Direct Investments in China

In the contemporary world, foreign direct investments (FDI) play a critical role in increasing the productivity levels of a host nation by enabling it to meet its domestic demand as well as the global demand for the goods and services that it is producing. Thus, FDI can be used as...

Hedging: Short and Long Hedge

Meaning of the term hedging Hedging is mitigation against risk exposure by taking a position in one market to offset risk exposure expected in another market. Hedging protects the hedger from future fluctuations in prices or exchange rate consequently an investor is guaranteed expected future profits. The hedger can be...

Effect of Dividend Payments on Shareholder Fund

Asquith and Mullins carried out a study to survey the impact of initiating a dividend payment on shareholder wealth. Their main objective was to understand further the impact of dividends on shareholder wealth. The survey made use of a sample of 168 firms. The dividend has been either the first...

Factors Affecting the Efficiency of Financial Institutions in UAE

Introduction The banking sector throughout the world has experienced a lot of crises. This is attributed to poor banking practices, inadequate revenue diversification and capital, credit risks and currency mismatches among others (Tektas & Ozkan-Gunay, 2006). These shortcomings prompted the introduction of liberalization and reforms in the banking sector in...

Financial Statements: The Key Elements

Introduction Financial statements are meant to provide the financial information of an entity as clearly and precisely as possible. They are records that clearly outline the financial activities of a business firm. Financial statements usually include a statement of comprehensive income, statement of financial position, statement of changes in equity,...

Payback Period and Net Present Value

Payback period Payback period is the duration of time a project takes to recoup initial investment. The decision criterion is to accept a project with a shorter payback period. Table 1.0 Ranks of projects using payback period. Rank Project Period 1 Project B 2 years 4 months 2 Project A...

Islamic Loan Versus Commercial Loan

Introduction The core business objective of ordinary commercial banks is to make a profit. Banks lend money at interest rates, and at the same time, they encourage customers to deposit funds at an agreed rate. The deposits are ways through which banks access legitimate funds to lend at higher interest...

The European Economic Crisis and the U.S Crisis

Introduction The European crisis is the financial crisis that affected, and is still affecting, countries within the Eurozone. The predicament is majorly attributed to the countries’ inability to repay their debts free of assistance that comes from third parties. Various intervention measures including European financial stability facility, European fiscal compact,...

Stock Exchange Securities Risks Characteristics

Introduction Stock Exchange is an aspect of the market that provides a medium through which stocks, bonds and securities are exchanged (Gurusamy, 2009). The main players in the stock exchange are stock brokers and traders. Stock exchange also facilitates the issuance and redemption of financial instruments and securities. In addition,...

Porter’s 5 Competitive Positions of Bhp and Woolworth

Introduction The five forces proposed by Porter are very essential in the understanding of a firm’s competitive position within an industry. The tools are simple but powerful in analyzing the business competitive situation (Cheverton 2004, p.113). Porter’s five force tools are not only used in determining the current competitive position...

Implications of New Regulations to Banks Basel Accords

Definition of the Basel accords The Basel accord is a set of regulatory agreements that were set by the Basel committee with the intention of regulating the banks. This happened after it was noticed that banks and other financial institutions were facing unforeseeable risks hence strategies to absorb the impact...

Political Processes and Cultural Factors in U.S.

Introduction Financial reporting is a process of communicating financial information for public or private institution, government and non-profit organizations (Alexander & Britton 2004). Interest groups require financial information when making investment decisions. From the financial information, interest groups compare financial performance of different companies. Therefore, it is importance that standard...

International Banking Regulation: Basel II Accord

Basel II The banking industry involves a risky business. To survive in the industry, the banks have to develop effective ways of taking and managing risks. The contemporary changes in banking and other financial markets have led to the complexity of the risks involved in banking. For instance, when a...

General Motors Company’s Stock Valuation

Stock valuation has been a vital factor when determining investment decisions in the economy. Most of the companies have their stock traded publicly, and General Motor Company is no exception. GM Company was founded in Michigan in the early 20th century. General Motors Company (GM) is concerned with designing, manufacturing,...

Daimler AG Company’s Stock Valuation & Investment

Daimler AG Description of the Company Daimler AG is a German transnational company that deals with the manufacturing of motor vehicles. The headquarters of the company are in Stuttgart, Germany. The firm ranks as the third-largest automobile manufacturer in the world. Apart from manufacturing motor vehicles, the firm also offers...

Discounted Cash Flow for Real Estate Investment

Introduction Real estate is defined as the type of an assets class that is tangible in nature. This class covers a variety of assets such as buildings that include residential property, office buildings, retail as well as industrial buildings. The real estates also covers land that can be used for...

US & UK Regulatory Response to the Current Financial Crisis

The United States along with United Kingdom’s ruling authorities had to formulate various regulations to bring the arising global financial crisis under control. The Federal Reserve of the United States just like the other central banks within the globe had to implement regulations aimed at expanding the money supplies to...

The Analysis of Financial Ratio

Introduction It is worth noting that the company’s financial statements released at the end of each financial year are very important to build strong and sound relationships with the various stakeholders who are involved in the organization’s businesses. Financial ratios are tools used by different stakeholders within the company to...

Financial Reporting: Current Value and Historical Cost Accounting Methods

Introduction Financial reporting is one of the most important accounting practices that profit and non-profit making organizations should integrate into their operation. Public organizations are under a legal obligation to disclose their performance to the public. One of the ways through which they attain this is by publishing their financial...

Brandes Mutual Funds: Investment Policy Statement

Introduction The State of Investment Policy intends to explore constraints, purpose as well as policies of Brandes mutual funds.Brandes mutual fund is based in Canada. Its major objective remains to make adequate returns for its clients. It is also focused towards attaining global excellence. In addition, the Statement Investment Policy...

Islamic Financial Instruments & Conventional Banking Systems

Introduction Islamic banking has grown steadily in the recent past. Past studies have noted that they have moved into other regions like Europe and the wider Asian region. For instance, Juan Solé observes that the Islamic banking system has expanded not only in countries with most Muslims, but also in...

Corporate Finance: Capital Asset Pricing Model (CAPM)

Introduction Capital Asset Pricing Model (CAPM) in finance is normally used to establish a hypothetically suitable return of a security, if that security can be included to a well-diversified portfolio, provided that security is of non-diversifiable risk. CAPM takes into consideration security’s sensitivity to systematic risk or market risk, frequently...

Investment Management: Rational and Irrational Markets

Investment Philosophy and Market View Investment philosophy Investment philosophy can be defined as those strategies or principles that guide an investor in his investment decisions such as value, technical, growth and the fundamentals (Shleifer 2000). In this case, the portfolio is strictly focused on small carefully selected assets, after carrying...

Index Funds vs. Actively Managed Funds

Introduction This paper contains a comparison of the actively managed funds and the index funds. To begin with, the actively managed fund is the liquidity pool which has a portfolio that is used as a platform of a trade by investors to meet their long-term objectives in an investment. On...

Causes of 2007 Financial Crisis

The worldwide financial meltdown is among the various types of financial crises, which are known to have serious long-term implications on the global economy. Various financial economists have tried to raise theories regarding the issue as well as trying to offer possible solutions on how to prevent such situations. The...

United Kingdom Tax System Overview

Introduction Taxation can be described as the way by which governments finance their spending by imposing charges on individuals and companies. Most nations use taxation to encourage and discourage economic decisions (Smith, 2006). For instance, taxation on personal income in terms of the amount paid as interest on mortgage leads...

Eurozone Money Market Future 2012

Introduction The fear of the Euro plunging into dilution had gripped the financial world completely. The developed economies in Europe Union (EU) failed to raise money for their bonds due to a decline in the confidence of the international financial market on euro zone. EU’s debt crisis worsened further since...

India and China Economic Rise Implications on Currency Markets and World Economies

Strong economies are emerging all over the world, but both China and India are still ahead because they are taking international markets by storm. Their rapid growth has pushed them into global markets and possibilities of development in their own regions. Nevertheless, these possibilities are rapidly turning into real development...

Financial Analysis of Wells Fargo Bank, U.S. Bank and JP Morgan Chase Bank

Introduction The aim of every organization is to maximize profit while minimizing costs. The operations of an organization in a given business environment aims at ensuring that the organization achieves its objectives. Financial performance of an organization is important for investors. However, it is not the only measure of the...

Government Policy Effect on the Insurance Market in Saudi

Introduction Government policy has contributed to the growth of the insurance policy in Saudi Arabia. This has mostly been through the creation of favorable conditions for the development of insurance firms and their ability to thrive. The paper has successfully looked at laws that were established in order to increase...

The Foreign Direct Investment: Company’s Engagement Reasons

Introduction Foreign Direct Investment (FDI) is defined as a process where residents from another country acquire ownership of assets of a firm in a foreign country with the purpose of controlling production, distribution among other purposes (Moosa 2002 p.1). The IMF defines FDI as ‘ an investment that is made...

Bank Loans on Businesses Analysis

Introduction American companies seeking to get loans from banks to expand their businesses are unable to access them due to the reluctance of banks to lend. This is because the banks have not yet fully recovered from the losses they incurred from the sub-prime mortgage crisis. The industrial and commercial...

The Federal Reserve Actions Towards Inflation

Inflation is one of the many economic heats that confront the world. Economic experts have always congregated to look for solutions by developing strategies to deal with inflation. Its adverse effects have made the issue to be the most understood aspect of the global economy by the learned and those...

2011 European Crisis, European Union Economic Ploblems

Introduction The European financial crisis arose out of fiscal measures adopted in several European countries. The international community got concerned in late 2009 and at the beginning of 2010. The European countries had accumulated high amounts of sovereign debt. In Ireland, the debt had increased due to bank bailouts. There...

Global Trends in Foreign Direct Investments

Improved international relations, technological development, growth in international trade, and development of reliable communication channels have led to rise in globalization. Globalization is the process through which regional economies integrate into a global network of trade; with globalization, multinationals and private companies are able to take advantage of enlarged global...

Financial Risk Assessment

Introduction More and more economies have developed the tendency to rely on private capital flows to sustain themselves and therefore have also become more prone to risks that come with the volatility associated with such capital flows (Baumol 2007). Researches have been carried out to help establish a comprehensive framework...

Oil Prices Affecting Stock Market in Gulf Countries

Introduction There is a large volume of studies on the correlation between oil prices and macroeconomics variables. Most of these studies have discussed the important effects of oil prices fluctuations on economic activities in the emerging and developed countries. One important factor of using oil price changes as a cause...

Do Analysts and Auditors Use Information in Accruals?

The last several decades could be characterized by the dramatic changes in the structure of society and market. These alterations are conditioned by the blistering development of technologies and approaches used to attain success and become beneficial. Furthermore, the changes in the structure of market conditioned the growth of its...

Risks and Returns Analysis Issues in Business

The risk and return associated with any type of investment bear several similarities. The more the “appetite” for high returns, the higher the level of risk a business entity has to accept. In other words, risks and returns are directly proportional to each other when it comes to investment (Greenwood...

Strategies That Fit Emerging Markets

Introduction Written by Khanna, Palepu, and Sinha (2005), the article ‘Strategies that Fit Emerging Markets’ is an informative piece that acknowledges the biggest challenge, namely globalization, which major businesses face today. Top-level management of large multinational corporations reveals how globalization has made it almost impossible to apply traditional strategies that...

The Use of Debt in Tax-Exempt Economy of Kuwait

Abstract This research will investigate factors that determine the capital financing structure of firms within a tax-exempt economy, Kuwait. It will question why companies in a tax-exempt economy, regardless of the lack of debt incentives, continue to prefer debt financing to internal sources of capital. The research attempts to fill...

Pension Plans and the Economic Troubles

Before the oil crisis in 1974, private and public pension plans were considered in terms of total social security benefit package. The economic troubles arising from the crisis triggered renewed thinking resulting into integration of the two systems. Overall private pensions plans was not a widely practiced tradition and the...

Financial Projections for a Coffee Shop

Dens Coffee shop is set to become a central part of the lives of coffee addicts in Tower Hamlets, London. It will offer the perfect environment for people to meet or just waste the day away as they sip a cup of coffee. The coffee shop will have 1200 square...

Commercial Bank of Dubai Announces Its Quarterly Figures

Introduction Commercial Bank of Dubai disclosed its financial results with reports of positive prospects. The bank had registered a one percent increment in its net profit as compared to the previous year with AED 0.40 earnings per share. Its return on average equity and return on average assets were reported...

Advantages and Disadvantages of Speculation

Advantages of Speculation Speculators play an important role in financial markets, because they give the markets the extra buoyancy needed to carry out trades. They are also important in the financial markets because “they provide information about the fundamental values of investments” (Duffie). Speculators will only buy when the conditions...

Application for Secured Loan for a Japanese Restaurant

I humbly forward my request for a loan of $50,000, which I will use to purchase ABC, a Japanese restaurant. I will secure the loan using my equity of $200,000. I will be comfortable to pay the loan in 5 years’ time covering both interest and principle. Currently I am...

Causes of the Subprime Mortgage Crisis in the USA

The paper is a critical examination of what led to the 2007 subprime mortgage crisis in the United States of America. It is worth noting that the subprime mortgage crisis is a financial as well as real estate crisis that occurred between 2007 and 2010. Subprime refers to the credit...

2007 Financial Crisis Overview and Analysis

Financial systems are the very foundation and heart of a free market economy. Therefore, it is not surprising that the financial crisis witnessed in 2007 to 2008 sent panic waves globally as investors and governments realized the possibility of the total collapse of the world’s economic system. With the proliferation...

How Banks Contributed to Credit Crunch

Introduction Credit crunch refers to an economic condition where the amount of credit available reduces drastically either due to tightened rules by the banks or reduced amount of money available. The crunch may also be caused by Massive external borrowing, merging credit with equity culture, fluctuation in business banking model...

Euro Currency Problems Analysis

It is possible to state that Europe’s debt crisis has become one of the most burning issues of the continent. The countries of the Eurozone are trying to decide whether they need the common currency. The crisis influences the lives of many people living in those countries. Admittedly, it is...