Discuss the implications short-term capital flows into emerging countries have on the financial stability and the economic development of those countries.
Discuss the implications short-term capital flows into emerging countries have on the financial stability and the economic development of those countries. The impact and desirability of international capital flows on emerging markets' financial and economic development is a subject of extensive debate. The macroeconomic policies and the globalization of financial markets in developing countries have changed the dynamics of these flows. Prior to the 1990s, portfolio capital flows went relatively unnoticed because most foreign capital inflow to emerging markets took the form of direct investment. (Campion M K, 2001) However, with higher levels of portfolio capital mobility, the recipient countries' economies were affected. The overall impact of this new situation for recipient economies is however, rather ambiguous. On the one hand, capital flows provide countries with financial resources that help them bridge the gaps between domestic saving and investment, and between foreign exchange available and foreign exchange required; and they may also lead to more disciplined and coherent economic policies. On the other hand, the high volatility of short-term capital flows implies complications for macroeconomic management and permits greater vulnerability to changes in international investors' perception of country incentives and risks. Almost all of the countries affected by
Investigation and analyzing the financial condition of Dell Computers Corporation
Centre for Overseas Academic and Culture Exchanges (COACE) Tsinghua University Academic Bridge Program 2009-2010 Accounting First Assignment Investigation and analyzing the financial condition of Dell Computers Corporation Submitted by David (Miracle) Words: 969 Dell Inc. is a multinational information technology corporation that develops, sells and supports computers and related products and services, as a merchant. Based in Round Rock, Texas, United States, Dell employed more than 76,500 people worldwide as of 2009. Dell is one of the largest technological corporations in the world. (http://en.wikipedia.org/wiki/Dell) How about the financial condition of Dell Company? Is there any financial problem in Dell Company? This essay will Investigate and analyze the financial condition of Dell Computers Corporation. (PS: The unit of all the numbers in the essay is in millions.) Graph One (http://www.dell.com/content/) We can see from the Graph One, this is the survey of Dell Computer Company from Jan. 2003 to Jan. 2010. More specifically, the data in the income statement is fluctuation. But overall, the date is ascending from 2003 to 2010. To be more exact, according to the Graph Two, this is a line graph about the revenue of Dell Computer Company from 2003 to 2010. The number of revenue is going up from 2003 to 2010. More specifically, at first in 2003, the number of
Capital Budgeting.
Essay 3 - Capital Budgeting Capital budgeting has received an increasing attention over the last ten years. Most studies have focused either on the relationships between investment decisions and financial theory, or on behavioural aspects of Capital Budgeting. The separation between analytical and organizational-behavioural aspects of budgeting, which has been criticized by many authors, appears particularly critical today: in fact, the implementation of new techniques in the analysis of investments - such as discounted cash flow modified methods, strategic options, scoring methods, analytic hierarchy process, fuzzy-logic approaches - requires an extremely accurate analysis that cannot be led only by the branch of the organization supporting the investment proposal, or by financial staffs, either. In this paper I will explore two methods (decision tree analysis and option methods) and examine how they can be used in capital budgeting. An effective and proactive strategic management of technology involves various decisions: from the formulation of a global technology plan to the selection and the adoption of a specific new asset. The basic question regarding the latter concerns which new technology has to be adopted and when. Time, in particular, is a crucial point, and deciding on the appropriate time is a critical issue which raises substantial questions coming from: the
British Telecom - company review
Table of Contents Table of Contents .................................................................................... 1 Introduction .......................................................................................... 2 Analysis of Company Performance ...............................................................4 Source of Long Term Finance and Shareholders Wealth ...................................... 9 Conclusion ..........................................................................................11 Bibliography ....................................................................................... 13 Introduction British Telecom is one of Europe's leading providers of telecommunication service. Its principal activities include local, national and international telecommunication services; the company provides local and long-distance telephone call products and services, international calls to and from the UK. In addition this company also provide higher-value broadband, and internet products and services and IT solutions. In the UK BT serves over 20 million business and residential customers with more than 29 million exchange lines, as well as providing network services to other network (BT Group PLC annual report). The company which has a motto 'delivering today, investing for tomorrow' is a public limited company registered in England and Wales,
Risk Management Case Study
Risk Management Case Study THE PROBLEM AND THE PLAN Incidentals of Authorization and Submittal This study of risk management recommendations of Turk Eximbank is submitted to Mr. H. Ahmet KILIÇOGLU, General Manager of Turk Eximbank, on April 30, 2001.As authorized on February 20, 2001, the investigation was conducted under the direction of Baris Samana and GÜrkan Kocgar. Objective of Risk Management Recommendations The objective of the study was to define why risk management was needed in Turk Eximbank and how to adjust the risk management system at the bank. The plan for achieving this objective involved first determining the techniques used for risk measurements. This information will then be used for Turk Eximbank's risk evaluation process. Use of Techniques for Risk Measurement The methodology used in this investigation was an obsevational study of defining the risk measurement techniques and then applying them to Turk Eximbak's risk evaluation process, if necessary. Investigations have been made at the Bilkent University Library and Internet, also we have interwieved with the risk analysts of Turk Eximbank. INTRODUCTION In recent years, a number of programs aimed at enhancing the effectiveness of supervisory process for banks. Although effective risk management has always been central to safe and sound banking activities, it has become even more important as
This paper will compare and contrast GASB and FASB accounting by explain the objectives of the two boards, explain how the two boards are similar, explain how the two boards are different, and explain how modified accrual basis of accounting differs from
GASB & FASB Analysis Paper Bridget Burns ACC/460 - Government and Non-Profit Accounting Joe Walthour Jr June 29, 2009 Two organizational authorities create standards for non-business accounting. These authoritative accounting and financial reporting standard-setting bodies are the Governmental Accounting Standards Board (GASB) and the Financial Accounting Standards Board (FASB). The GASB is the standard-setting body for government entities. The FASB is the standard-setting body for all nongovernmental entities, including not-for-profit organizations. This paper will compare and contrast GASB and FASB accounting by explain the objectives of the two boards, explain how the two boards are similar, explain how the two boards are different, and explain how modified accrual basis of accounting differs from full accrual basis of accounting. Objectives The overall objective of financial reporting is to meet the information needs of statement users. The GASB and the FASB have developed objectives of financial reporting that stress the importance of providing information that enables users to assess interperiod equity and compliance with budgetary (or spending) mandates (Granof, M. H. 2007. p 28). GASB objectives of accountability are interperiod equity, budgetary and fiscal compliance, and service efforts and accomplishments by assessing economy, efficiency, and
Mini Case.
MINI CASE DONNA JAMISON, A 1997 GRADUATE OF THE UNIVERSITY OF TENNESSEE WITH FOUR YEARS OF BANKING EXPERIENCE, WAS RECENTLY BROUGHT IN AS ASSISTANT TO THE CHAIRMAN OF THE BOARD OF COMPUTRON INDUSTRIES, A MANUFACTURER OF ELECTRONIC CALCULATORS. THE COMPANY DOUBLED ITS PLANT CAPACITY, OPENED NEW SALES OFFICES OUTSIDE ITS HOME TERRITORY, AND LAUNCHED AN EXPENSIVE ADVERTISING CAMPAIGN. COMPUTRON'S RESULTS WERE NOT SATISFACTORY, TO PUT IT MILDLY. ITS BOARD OF DIRECTORS, WHICH CONSISTED OF ITS PRESIDENT AND VICE-PRESIDENT PLUS ITS MAJOR STOCKHOLDERS (WHO WERE ALL LOCAL BUSINESS PEOPLE), WAS MOST UPSET WHEN DIRECTORS LEARNED HOW THE EXPANSION WAS GOING. SUPPLIERS WERE BEING PAID LATE AND WERE UNHAPPY, AND THE BANK WAS COMPLAINING ABOUT THE DETERIORATING SITUATION AND THREATENING TO CUT OFF CREDIT. AS A RESULT, AL WATKINS, COMPUTRON'S PRESIDENT, WAS INFORMED THAT CHANGES WOULD HAVE TO BE MADE, AND QUICKLY, OR HE WOULD BE FIRED. ALSO, AT THE BOARD'S INSISTENCE DONNA JAMISON WAS BROUGHT IN AND GIVEN THE JOB OF ASSISTANT TO FRED CAMPO, A RETIRED BANKER WHO WAS COMPUTRON'S CHAIRMAN AND LARGEST STOCKHOLDER. CAMPO AGREED TO GIVE UP A FEW OF HIS GOLFING DAYS AND TO HELP NURSE THE COMPANY BACK TO HEALTH, WITH JAMISON'S HELP. JAMISON BEGAN BY GATHERING FINANCIAL STATEMENTS AND OTHER DATA. ASSUME THAT YOU ARE JAMISON'S ASSISTANT, AND YOU MUST HELP HER ANSWER THE FOLLOWING QUESTIONS
Discuss the main theories of international finance and assess how each of them would pass Professor Buckley's test of standing up in the real world.
The assessed coursework assignment comprises the following question: "The test of a good theory is how well it stands up in the real world" Professor Adrian Buckley, "Multinational Finance" Discuss the main theories of international finance and assess how each of them would pass Professor Buckley's test of standing up in the real world. Foreign Exchange Rate Theory At this moment, there are many theories about the foreign exchange rate. Every theories also have different definition and assumption. However, there are only five main theories, which are recognised and popular in the present situation. These three theories are Theory of Purchasing Power Parity (PPP), Theory of Interest Rate Parity, The Fisher Effect, The International Fisher Effect, and Expectations Theory. Theory of Purchasing Power Parity (PPP) According to this theory, it said, if the spot exchange rate of two countries start from the equilibrium point, the different in the inflation rate of these countries will tend to influence the value of these currencies in the long term. According to David Ricardo, the classical economist, in order to expect or determine the foreign exchange rate between each currencies, the ratio of the value of two currencies will equal to the ratio of the consumer price index of these countries. On the other hand, we can imply that, the foreign exchange rate of two countries is
Inflation and Deflation.
Introduction Inflation and Deflation, in economics, terms used to describe, respectively, a decline or an increase in the value of money, in relation to the goods and services it will buy. Inflation is the pervasive and sustained rise in the aggregate level of prices measured by an index of the cost of various goods and services. Repetitive price increases erode the purchasing power of money and other financial assets with fixed values, creating serious economic distortions and uncertainty. Inflation results when actual economic pressures and anticipation of future developments cause the demand for goods and services to exceed the supply available at existing prices or when available output is restricted by faltering productivity and market constraints. Sustained price increases were historically directly linked to wars, poor harvests, political upheavals, or other unique events. Examples of inflation and deflation have occurred throughout history, but detailed records are not available to measure trends before the Middle Ages. Economic historians have identified the 16th to early 17th centuries in Europe as a period of long-term inflation, although the average annual rate of 1 to 2 per cent was modest by modern standards. Major changes occurred during the American War of Independence, when prices in the United States rose an average of 8.5 per cent per month, and during
Cash Flow Analysis Worksheets
Cash Flow Analysis Worksheets This article describes the cash budget and analysis worksheets available for downloading at the Department of Agricultural and Resource Economics web site http://ag.arizona.edu/arec/ext/budgets/counties.html under the financial template section. The worksheets are part of the cashcost file in either the Excel or Quattro Pro format. These spreadsheet templates can be used to generate budget information customized to your operation on an operating or cash cost basis only (fixed costs are not included). A cash flow analysis is an important step in taking control of any agricultural business. The allocation of income to cover expected costs throughout the year will help ensure that all credit obligations will be met. It is equally important not only to track current cash flows, but also to project at the start of the production year all expected income and expenditures. Once expected income and expenditures are recorded, comparisons can be made between projected and actual cash flows to help point out any discrepancies. Two of the main worksheets found in the cashcost file are the cash budget worksheet and the analysis worksheet. Both of the worksheets and how to use them are described in the following paragraphs. The cash budget worksheet allows the user to summarize all cash inflows (receipts) and outflows (expenditures) for up to four