Essays on Financial Crisis

Worries about a decline in the birth rate are nothing new, at least in many developed nations. As early as 1909, Hoffman made it perfectly clear that a love for babies was not the reason that some in the U.S. fretted over the declining number of births. Rather, it was concern over the decreasing rate of births among “native white married women” while the “rate of reproduction [was] materially higher among the foreign element” (p. 676). Similar concerns are in evidence today in places such as Israel, where the comparatively high rate of births among the Arab population has ...

Introduction.3

Political analysis 3 Economic analysis .4 Social analysis 5 Technological analysis ..6

Legal analysis .6

Environmental analysis 6 Conclusion7 Recommendations7

References.7

Introduction Out of one hundred and ninety six countries in the world, Spain was chosen for this assignment in order to conduct PESTLE analysis. Political, economic, social, technological, legal and environmental factors are going to be analyzed systematically and the information is taken from one of the relevant and credible sources – CIA World Factbook, and others. General factors about Spain are going to be reviewed first before proceeding to the analysis of Zara in order to have a better understanding. Zara is ...

Introduction

The financial crisis of 2007/9 was the worst in the U.S. since the Great Depression of the 1930s. It was the cause of the failure of some of the biggest financial institutions including Washington Mutual which was closed in 2008, and its assets transferred to JP Morgan. In 2008, the crisis reached its peak with loans dropping dramatically to the lowest levels to be witnessed in a half a century. For example, new loans to large borrowers fell by 47 percent in the fourth quarter of 2008 as compared to the previous quarter and by 79 percent relative to ...

Impact of Policy Changes on Financial Stability of Commercial Banks in India

Paper Due date Abstract The study envisages financial stability of Indian Banks, especially schedule commercial banks, in the backdrop of macro-prudential policy changes. Banks are put under microscopic vision in terms of performing as commercial units while strictly adhering to the policy norms. The effect of regulatory and supervisory policy changes can be evidently seen in stressed performance of banks in the recent years, in-spite of growth in their retail portfolios. The policy changes of increased provisioning for NPAs, improvement in asset account quality, revised guidelines for Net Stable Funding Ratio, restructuring of large accounts and many more have ...

The article "Despite Recession, High Demand for Skilled Labor" by Louis Uchitelle highlights the need for skilled labor despite the soaring unemployment rate. The unemployment rate has risen to 9.4 percent, the highest in 30 years (Uchitelle np). This increase is mainly due to a recession. Interestingly tough employers are looking for qualified workers even during the hard times according to the government's standard employment data. These jobs take years of experience to attain the required skills. For instance, it is tough to find an experienced person in welding. It takes a minimum of ten years to produce a ...

The ‘paradox of thrift,’ in essence, is the concept in which people inherently value being thrifty during economic recessions in order to not overspend, but this paradoxically leads to lower economic growth because people are spending less (Krugman, 2009). It is an important attribute to Keynesian economics, and it essentially calls into question the inherent virtue of saving as an overall good. When we have less money to spend, it is thought to be a good idea to avoid overspending and save money, since you need to save it for more important things. However, if enough people do that ...

The Transportation Industry is considered to be cyclical in nature because the revenues and profits of companies operating in this category are directly tied-in with economic booms and recessions. This implies that when the business cycle in a country hits a high, there is tremendous growth in this industry, which also triggers increased employment . This is primarily because whenever the economy of a country is doing well and Gross Domestic Product rates register an increasing trend, there is increased production of goods by the manufacturing industry as well. The underlying reason for this increase in production volumes is increased ...

The U.S Securities and Exchange Commission refers to the United States’ agency that is tasked to enforce the securities laws, policies and guidelines, including the country’s stock and options exchange activities. It is the objective of this agency to “ protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation” (U.S, 2017). One of the main roles of the SEC is to ensure that investors who turn into the securities exchange market are protected and activities that are geared towards capital and investment formation are sustained for economic growth.

The Creation of the PCAOB

The Public Company Accounting Oversight Board (PCAOB) was ...

Volatile Prices of Primary Goods Preventing Economic Development in LDCs

Background The primary goods refer to the products that are obtained directly from agricultural activities and are not subjected to the process of manufacturing. The most important primary products in an economy include those that are obtained from the sector, such as the fishing, agricultural, forestry, and mining industries. In terms of the least developed nations, which are mainly located in Africa, Asia, and the Latin America, the trade characteristics of their economies include the dependence on the developed, industrialized nations, and, significantly, the reliance on primary products. Accordingly, in international trade, the least developed nations’ exports are primary ...

Introduction

The European Union is the result of the flow of economic integration in the world. It was created in 1958 and became a powerful economic group. Within the framework of the Union, the benefits of mutual trade are established, the general economic policy is carried out, and restrictions on the movement of goods, capital, and labor are constantly removed (Krugman, Obstfeld, and Melitz, 2014). The creation of the EU was due primarily to the fact that in Western Europe after the Second World War, the contradiction between the international character of modern production and the narrow national and state ...

A Review of the Literature

If asked to name the “national dish of Britain,” the average person is likely to say, “there is nothing more British than fish and chips,” but he or she might be wrong as it all depends on the criteria used to determine the national dish (Castelow, 2013). If popularity is the yardstick, then fish and chips would miss the mark, since each year in the UK it is outsold by hamburgers, fried chicken, pizza, and Indian and Chinese food (Alexander, 2009). And while this is true, fish and chips still play a vital role in the economic success of ...

Summary

The principal intention of the article is to find out the effect of state corporate income tax rate cuts on job creation. The author's conducted an experiment trying to establish whether decreasing the amounts of corporate tax helped to spur economic growth which in turn resulted in the creation of employment. The authors of the article analyzed jobs created in economies where the corporate tax was reduced and economies where the taxes remained the same. The main conclusion was that reducing the amount of corporate tax paid enabled firms to hire more workers, which in turn resulted in more ...

Austerity Policy Measures in the UK

Introduction The process of putting into place strategic measures with an aim of reducing of deficit and increasing economic growth in the United Kingdom has taken a paradigm shift from various aspects. The government of UK has put deficit reduction measures, which entail a series of strategically sustained reductions in public expenditure, undertaken towards a reduction of the government budget deficit and the UK’s welfare state. The design of this research paper is structured towards assessing the rationale on which the UK’s austerity policy is based with regards to deficit reduction and stimulation of economic growth (Burns, ...

The last year was marked by the unexpected results of referendum held in the UK, where citizens had to decide whether the country should leave or stay in the European Union. Obviously, many experts had been skeptical and the results, with 52 % voted for the exit, were, with no doubt, shocking both for the EU and the entire world. The financial markets reacted immediately: the pound experienced the largest decrease during the entire period of the free-floating and major stock indexes, like FTSE 100 and FTSE 250 also fall considerably (Mackenzie & Platt, 2016 June 25). However, the reasons the ...

Jay Kiley

Dr. Lorrie McGovern Literature Review Abstract Innovations are inevitable in the business nowadays as they lead to the increased efficiency. The more efficient the company is, the higher the profit it gains. This is equally fair for the product innovation and management improvement. Moreover, financial innovations are now even more desired. All these changes are beneficial for all parties, as development of the entrepreneurship leads to the social and political improvements. Therefore, within this paper, a literature review will be performed to reveal main discussions on the innovations in the financial management, especially in the commercial lending. Both advantages ...

1. Misconceptions Money generation remains central to economic activity. The process of how money is generated / created and destroyed is not, in fact, readily understood and is subject to numerous misconceptions. If anything, main conceptions about money creation and destroy assumes a linear conceptualization mode. Typically, money is widely – but mistakenly – believed to be created and destroyed by a direct relationship by which an owner places money deposits in a financial institution which, sooner or later, lends money to borrowers and hence creates more money. In modern era, particularly in a global financial system in which financial transactions ...

Introduction

An organization is regarded as an entity that is made up of people with a collective objective and is connected to the external environment. Hence, a business organization is a group of people collaborating to achieve a commercial objective (Handy, 2005). Toyota Motor Corporation is a Japan based auto manufacturing company with its headquarters in Toyota, Aichi. The company was ranked as the 13th largest in the world in terms of their revenue. It was the largest automotive manufacturer in 2010 ahead of the Volkswagen group and the general motors in terms of their production. The Toyota motor company ...

The two thousand and eight financial crises resulted in significant economic turndowns. Before it began in two thousand and seven, prices of housing rose, new investment options emerged, and risk diversification increased. Following the crisis, house prices fell by huge percentages. It exposed economic weaknesses of the United States. Additionally, it led to an increase in the unemployment rate by ten percent (Mishkin, 2011). Approximately, nineteen trillion dollars of household wealth were lost. Lehman Brothers collapsed in two thousand and eight affecting the global financial system. Taxpayers had to bail out various banks to stabilize the system. This paper ...

(Tutor’s Name) (Assignment)

Introduction US has been the center of the global economy for the past several decades, and hence decisions taken by the U.S government can have significant impact on the rest of the world. In the same manner, the monetary policies formed by the Federal Reserve (FED) – the central bank of the United States –influence the economic policies of other countries worldwide. Therefore, central banks worldwide are closely monitoring the moves of the FED so as to make timely adjustments to their economic and monetary policies. The U.S economy was severely hit by the global financial ...

Japanese Economy in the Recent Years

Introduction During the advent of economic downturns particularly in terms of financial crises or bubbles, the usual resort of the government is to rely primarily on its monetary tools alongside expansionary fiscal policies to stimulate the economy. Monetary policies are tools used to deal with inflation, budget deficits, unemployment, incomes, international economic relationships among others. Monetary policies have profound effects on our jobs, incomes, livelihood, and career choices. One of the considerations and is always on the watch in an economy is the behavior of prices of the goods and services. As the law of demand states that with ...

Market discipline has evolved from the real need to address the financial concerns that brought on the last few financial crises. The international economy is tied deeply to the financial sector, and international organizations such as the International Monetary Fund and the World Bank have been tasked with providing ease of liquidity throughout the world, while also helping to protect the flow of capital across borders to facilitate trade. These financial institutions are remarkably limited to what they can do because they hold little sovereignty over the independent nation-states that compose them; only the World Bank is effective when ...

QUESTIONS

The Vodafone’s key performance indicators (KPI) table reflects that recession has made some impact on their performance during 2009 when compared to their prior performance report of 2007 and 2008. The economic downturn has affected Vodafone’s performance in the areas of service, data revenue, and operating profit. Both service and data revenue keep declining even though the number of mobile customers has increased by 42.1m. The lower growth in the usage and decrease of new customers from 39.5m to 33.6m could have reduced the service and data revenue by 0.3% and 25.9%. However, Operating profit has increased ...

Introduction

Conflict is an unavoidable aspect of life. If there were no discord, thing would be predictable. However, conflict is very widespread in different areas and organizations are no exceptions to it. Organizations are competitive entities which deal with humans as employees. While minor issues persist in any setting, realization dawns only when things get out of hand. There arises the need to manage such conflict effectively. An organization provides various opportunities for conflict. Since it cannot be wished away, there is a need to encounter it. The best method of doing so would be to find the underlying causes ...

China's leading role on the world market is undeniable. Over the years, Chinese reforms transformed this country from a backward agrarian one into a leading industrial power, by industry of which the stability of many countries depends on. Another proof was the fact that since 2010, China has become the second largest economy in the world after the US, ahead of Japan, which had occupied this position for 42 years (Greenaway & Milner, 2010, p. 20). Today, China is the largest consumer, producer and exporter in the world. China encourages the discovery of new commercial and industrial enterprises, the implementation ...

Educational Institute

Research Objective The objective is to determine and examine the role of the stock market in economic development. This research would analyze data gathered and demonstrate the significance of stock markets in the development of economies. Insights would be gathered on what factors can support the notion that the stock market is an indicator of economic health and a guidepost for a better understanding of economies.

Literature Review

Kelly, 2010 The article is a direct expository address to the relation between the stock market and the economy. It focuses on the conceptual aspects rather than on the data and analysis and ...

Introduction

If any organisation were to succeed in achieving its objectives and targets, it is at the mercy of the strategies that it develops for itself. A lack of strategy will tell on the manner the organisation works. Hence, the team employed to this effect should be efficient and have the required knowledge for the same. Plans should match what the company envisions for itself in the light of its finances and operations. Such plans work in the long run. The more changes occur in them, the more difficult it is for them to move ahead. Realistic yardsticks can be ...

CHAPTER II

This chapter will seek to conduct an absolute inquiry into what makes up security interest laws in the United States. In order to lay the foundation for comparisons in subsequent chapters, the three main elements of the study of the Saudi system will be reviewed here in the context of U.S laws with an emphasis on California state law. The features of the California legal system will include the assessment of foreclosure rules and patterns in California. This will include a detailed fact-based evaluation of CCP580 (b), CCP580 (d) and CCP726 (a). The different components will enable the study ...

Background

Being a small sized nation and also one lacking too much of natural resources, it was mandatory for Singapore to adopt a policy of open trade. The overall trade in Singapore currently amounts to thrice its GDP. Moreover, Singapore possesses absolutely no exchange controls either on the inflows or the outflows of foreign currency funds through its residents and non-residents. Despite the presence of stricter controls over the flows of domestic currency, there is no control that the nation has on its inflow and outflow. The country is known to be following an extremely liberal foreign direct investment (FDI) ...

Introduction

Cash management is a complex task though it seems to be an easy job. It is a highly complex as well as detail oriented task. It is very necessary to effectively manage the cash that the company have. If the company fails to manage the cash effectively, then there will be problem in meeting the financial obligations. Failing to manage the cash effectively will affect the company’s operating, financing and investing activities. In sum, the whole cash flow system will be affected. To facilitate the cash management, the company prepares the cash budget and implements the proper cash ...

The story of Microsoft started as a small company founded by two high school friends in 1972 and a relatively shorter period, these friends could manage to revolutionary innovations in the history of computer producers. Before them, the computers were using very confusing software for users. Microsoft Company has produced the computer operating system of Windows. The primary strategy Microsoft has followed is to create user-friendly applications and operating system. The software developed by Microsoft has made the use of computer very easy, and that helped the company increase its market share in the global market. Nowadays, Microsoft has ...

Introduction

Attending the course of Introduction to International Market, I believe that it helped me to improve my understanding and thoughts about the international business and its nature. My knowledge has significantly been increased about globalization with the help of this course. In reviewing my course, learning, readings and tutorial questions, I have found that Globalization around the world remained the major issue throughout the course to understand its role and impact on the international business. Although, the course discussed globalization in different perspectives such as its impacts, consequences, debates, etc, however, the issue of key drivers of globalization and ...

Process one- Mission and Vision

The organization has a mission of inspiring and nurturing the spirit of people. Its vision involves the establishment of the company as a premier source of the world's finest coffee. Therefore, the company would like to motivate the spirit of its employees through maintenance of its culture, and rapport as it grows (Gregory).

Process two- situation analysis

Strengths The greatest strength of Starbucks is the delivery of a robust and consistent sales growth even at times of challenging backdrop in consumer spending. Secondly, Starbucks has excellent use of finances that has maintained free cash flow. This has supports the development of its products ...

In the article Too Poor to Make the News that appeared in The New York Times on the 13 of June, the author Barbara Ehrenreich predicts the emergence of a new class called ‘the Nouveau Poor’. Ehrenreich believes that this inequality that can be seen for a couple of decades will be leveled by ‘recession porn’. With this term she refers to a new genre of media that makes peoples’ lives harder and forces to refuse from habitual and beloved things. (Ehrenreich) Barbara Ehrenreich in her article Too Poor to Make the News answers on the question that disturbs ...

Meaning of Chapter 7 liquidation and Chapter 11 reorganization

Chapter 7 liquidation entails a bankruptcy proceeding whereby a company or any other business organization closes all its operations and completely get out of business. Essentially, liquidation involves converting sellable company’s assets into cash. Therefore, Chapter 7 liquidation is a procedural undertaking which involves appointing a trustee to liquidate or sell the assets of the company that has been declared bankrupt, and use the proceeds from that liquidation to clear the debts owed by the company. The Chapter 11 of federal bankruptcy law is a legal proceeding in which companies are required to reorganize themselves. Reorganization of companies ...

The latest global financial crisis of 2007-2008 years was merely forecasted or expected. Furthermore, no one could predict that it will actually start from the collapse of the real estate and later financial markets of the United States. By that time, globalization processes have occupied not only trade and service industry, but also labor, financial and banking segments. In the modern world, globalization is inevitable, due to fast spread of the information, constant movements of the human resources, development of the international companies, emergence of new economic and trade unions, etc. Definitely, globalization opens new horizons and helps to ...

Business Strategy

Competing in a dynamic and fierce industry with well – established firms that dominate the market, Aldi, a German grocery company, developed its own value chain that allowed it to be grasp a portion of the market share and become a relevant player in UK (IBS Center for Management Research, 2015). According to Michael Porter (38), value chain is industry – specific and firms organize their internal value chain structure different than other players, so that they can gain distinctive competitive advantages. Porter’s (39 - 40) value chain model is based on the premises that every company has primary activities ( ...

Chapter 2

Literature review Russia has a very large number of hospitals, physicians, and health care workers as compared to any other country in the world. In spite of this, the medical care fraternity has failed to offer standard and acceptable health care services to its people. Russia has faced a health care system crisis for an extended period since the collapse of the Soviet Union. Significant transformation in the social, economic, and political environment has adversely affected the health care system (Britnell, 2015). The poor health care system in Russia has been precipitated by the lack of medical and technical ...

Strategic Analysis Alacer Gold Corp and Gold and Mining Industry

Introduction Gold is a precious metal with high ductility and malleability, and it finds application as jewelry and investment. It is considered to be one of the safest bet for investment, especially during economic instabilities. Consequently, rapid political instabilities in the Middle East and financial crisis led to rapid increase in the price of gold worldwide. Technological innovation is also a major factor that affects the gold and mining industry. Therefore, the strategic analysis narrows on the gold industry, with a specific focus on Alacer Gold Corporation. It looks at the trends in the industry and how Alacer Gold ...

As requested, I have examined the current market conditions and business settings in Spain that will hopefully provide you with the significant insights regarding the decision of initiating electric car manufacturing business in Spain. The Spanish automobile industry offers us lucrative prospects not only in manufacturing electric automobiles but also presents us with an opportunity to export our products to over 130 countries around the world.

Spain has a population of 46.4 million people and its GDP stands at $1199 bn. Spain’s GDP is 1.42% as percentage share of the World’s total (World Economic Forum, 2016). Like ...

How the President’s Stimulus Plan for High-Speed Rail (HSR) will not work

The president’s HSR plan will spend billions to offer a rail service to a small percentage of the travelers. Importantly, the federal cannot afford this extravagant program, and it will cost taxpayers a lot of money. Thus, the plan will not work as previously expected. The federal has a large budget deficit of about 1.4 trillion (Utt, 2011). Thus, a massive expenditure on the HRS will heighten the deficit more. American citizens have realize that the plan will cost more compared to the perceived benefits. Although there seems to be small opposition on the HRS, it is clear ...

mmmmm dd, yyyy (Dimson, 2015) (Explore adidas, n.d.) Both advertisements are just showing the product and nothing else but their elements are making different appeals to customers. Nike is showing a strange looking model where the sport is not clear. The effect is to look into the ad closer to find out for what sport is the shoe. This is a strong catch-on for any sports shoe customer. It challenges the imagination and is invoking a challenge to the viewer. The other appeal is it is invoking science when it has the word ‘gravity’ boldly emblazoned. The message connotes ...

The recent Brexit vote has brought about a number if tensions associated with membership in the European Union and a common European economic area. It has also put into serious question the European Project started in the post-World War II era. Please argue for or against Britain being a member of the European Union. Be sure to cover five broad areas of disagreement economics (Benefits/ Costs), political (Benefits/ Costs), Labor market (who wins? Who lose), social (costs/ benefits), and issue ofan identify? Britain a second-largest economy after Germany is a member of the European Union, has taken up a ...

Abstract and Description

Atlantic Cooling Services & Technologies is a US-based company providing full-stack cooling services for the businesses and individuals. With more than 30 years in business, the company is one of the vastly experienced players on the United States cooling market, providing a unique fusion of rich experience and the most state-of-the-art developments in cooling technology. The company positions itself as a ‘one-stop’ solutions provider for its customers, i.e. it provides all services required for constructing, maintaining and demolishing a cooling tower or a water tank. The expertise domains of the company includes customized design and construction of the cooling towers ...

Introduction

German sociologist Max Weber defined a charismatic leader as someone that espouses extraordinary characteristics and whose vision inspires several others (Avolio & Yammarino, 2002, p. 168). Charismatic leaders are capable of gathering masses in their support and leading major political, religious or social movement. But, such large following can be positive or negative for their opposition and some of them might even take criminal routes to achieve their objectives. In the present world, Barak Obama is a charismatic leader who is seen as a positive charismatic leader. Obama led a major political movement and brought the majority of the nation ...

1. In the article, “Why Private Donations Aren't Helping America's Poor”, Charles Kenny, tells why social protection cannot be completely trusted to charity, and why charity cannot replace government safety net in America. America holds 10th position globally, with respect to income equality. More than 50% of the country’s wealth is owned by just 3% of the American population. Though rich American make donations to charities, these donations tend to fall during the recession, when the need for support is at the highest. In addition, only 12% of the total charity amount is spent on human services. Though ...

Problem Statement

There are a number of reasons, defined by the ethical as well as the economic and the political scenes, for the non-diminishing interest in addressing the gap between the rich and the poor. "The rich get richer and the poor get poorer" is an aphorism, which outlines the major views on economic inequality and the criticism, seen in academic and business literature, towards the philosophy of free market and capitalism in general. One of the principal works, laying the foundation for the discussion, is the work by Thomas Piketty, Capital in the Twenty-First Century (2014), who places the idea ...

Rancho Solano

Rancho Solano Private School (RSPS) is a private school founded in 1954. Until 2013, the school continued to open educational establishments across the country. However, after 2013, the economic recession started to take its toll on the educational industry. In 2014, the school started announcing closure of several of their schools. These closures have continued over the past two years. At the same time, school enrollment is increasing across the country. In Arizona, K-12 enrollment is expected to grow by 23% by 2023 (Oke, 2015, p. 3). The RSPS campuses in Arizona closed in 2014. It is a necessity ...

Chapter 1: Introduction 3

Chapter 2: Financial Performance and Position of TESCO 6 Chapter 3 Financial Management Policy 14 Chapter 4 Investment Strategy 18 Chapter 5 Valuation of TESCO 22 Chapter 6 Conclusion 26 Abstract The present report provides critical analysis of financial positioning of Tesco Plc. For this, the financial data has been gathered for past five years as well as its competitors to critically assess financial positioning of Tesco in the retail industry. The reports highlight the recent issues of Bretix which has significantly impacted economic conditions of the United Kingdom leading to declining the consumer confidence because of triggering inflation. ...

(Student’s Full Name)

Introduction According to the Associated Press, there were more poor people residing in the state of Washington in 2013 compared to the previous year. This was the case despite the poverty levels remaining steady “across the nation” (Le par. 1). In addition, the United Way has recently revealed in a “comprehensive report” that “1 in 3” Washington households “struggle financially” (Hobbs pars. 1, 22). The experts have arrived at their own conclusions as to why that it is currently the case in the state. However, even though the cause of poverty in Washington State has ...

Abstract

The Great Depression during the 1930s was referred to as the most severe economic downturn that affected the United States and the global economy. The depression lasted for almost a decade, and some economists and monetary scholars blamed the failure of the banking institutions to come up with effective policies to maintain a sound standing. The banks were not sufficiently prepared to deal with erratic economic movements. Consequently, there were also those who argued that the Fed should be blamed for the economic recession because of their failure to adapt sound monetary policies. It was pointed out that the ...

International Expansion of Corporate Entities – A Case Study of Urban Outfitters

Urban Outfitters is an American clothing manufacturer that is known for some popular brands like Free People and Anthropologie. The clothing company has gained a lot of results in the United States and has grown to become a popular local brand. However, in the past few years, Urban Outfitters has embarked on an internationalization plan. This has led to the expansion of the company and its activities to different regions around the world. The purpose of this paper is to conduct a case study of Urban Outfitters and its internationalization strategy. In order to attain this end, the following ...

Marriot International Inc. is considered the most important hotel chain in the world with 3400 hotels and resorts including 750 thousand rooms. Table 1 shows the revenues by sales and net income of the company from 2009 to 2015. Each variable, sales revenues and net income are independent variables that depend on of the independent variable which is the year. Both sales revenues and net income have a relation where the net income is always lower than the sales revenues, according to finance administration theories. In Figure 1 it is possible to plot both variables related to the year. ...

The main goal of the state at all stages of its development is the stabilization of the economy. At the present time, the state actively uses the tools of intervention in the economy. The main 2 types of state intervention in the market economy include fiscal and monetary policies. Fiscal policy has been a key policy tool in addressing the aggregate demand consequences of the financial crisis in the United States. (Follette & Lutz, 2010)

Objectives of fiscal policy as any stabilization (countercyclical) policies aimed at smoothing cyclical fluctuations in the economy are to ensure:

Stable economic growth; Full employment (primarily a solution to the problem of cyclical unemployment); Stable price level (problem of inflation). (Strauch & Hagen, 2000) Fiscal policy ...

2007 Economic Crisis Review

Abstract

This article is an academic review of the economic crisis that struck in 2007 whereby the world economy experienced deep and long prolonged recession with the crisis being considered as the worst to be experienced since the Great Depression . This article largely lies its basis on the U.S experience during that period with the effects, which resulted from the crisis in the overseas markets outlined. Also, the article brings an understanding of some of the conceptual underpinnings of the issues lying at the heart of the economic crisis. The underlying causes of the economic crisis ...

Introduction

Background of the Study The world economy is currently facing numerous challenges, ones that imped growth and continuous economic development. In reality, there is no such thing as a straight line when it comes to economic development, accounting, and asset management. If history is to serve as a basis, economic development, both on a national and international scale, has been and so can be characterized by a cycle of boom and bust . Based on the metrics that both accountants and economics experts look into when analyzing a for-profit organization, a bank, or a macro economy, the risk of being ...

In his “ on the political economy of the financial crisis and bailout of 2008-2009”, Roger Congleton argued that the decision of the United States government to provide financial aid to the financial institutions stricken by the 2008-2009 global mortgage crisis was rather an ill-conceived move, in the both political and economic contexts. His ideas were further explored by the Alan Montague, who emphasized that the very idea government aid to the large financial institutions was hardly compatible with the ideas of welfare state (Montague, 11). During the global recession, twenty millions of the Americans were not capable of finding ...

Imperial Oil is a giant Oil and gas producing company based in Calgary, Canada. It is the second largest integrated petroleum company in Canada and has employed profitable strategies which stimulated its growth since its establishment in1880. Its operations include exploration and extraction of oil and gas, manufacture and distribution of petroleum products, production of chemicals for industrial and domestic use through innovative and sustainable technology. It has been paying dividends to its shareholders for 21 consecutive years. The success of IOL can be attributed to the efficient deployment of its resources, capitalizing on its strengths and using the ...

Moral hazard in equity contracts

In some instances, the seller of security is driven by incentives to conceal information from the purchaser and may engage in detrimental activities. This constitutes the problem of moral hazard in equity contracts. An example is the problem of Principal-Agent, which concerns the separation of possession and management of firms. The executives in corporations in this case only own a small share of the firm compared to the principals/share-holders. The managers then opt to pursue their interests at the expense of the firm's profitability bringing about a conflict of interest between the shareholders and corporate management (Banerji, and Basu ...

U.S. Trade Deficit The US has been running the significant trade deficit over the last four decades. As a result, the country is the biggest debtor in the world with almost $3 trillion net debt. Obviously, this situation raises concerns among many researchers and policymakers, as they suggest that the long-run trade and current account deficits might make devastating effect on the growth performance. Actually, the issue is quite controversial and debatable: for example, other researches claim, that trade deficit is merely the result of the effective re-allocation of resources in the global economy and there is no consequences, ...

1. The Financial Crisis: Avoidable but Inevitable Theoretically, the financial crisis could have been avoided as investigation findings revealed . Under the circumstances however, the crisis was an inevitable consequence of everything that was going. The Federal inquiry concluded that the 2008 financial crisis could have been avoided. The crisis was the result of “widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street”. It was the result of “greed, ineptitude or both” on the part of government and the private sector. Among the persons found responsible for the crisis included Federal Reserve Chairman Alan Greenspan and, ...