Variations in business cycles are able to be seen as short-term and long-term progression developments and they could shift. Cycles are calculated using the real gross domestic product of a country. Not like the more organized phases of economics, business cycles do not follow a foreseeable or mechanical form. However, they should be factored into considering an economy.
But the amount that a manager can hold stocks should be limited because the ownership would be split in this way as it is not good for Brazos itself to decrease its ownership. The real estate subsidiary is a good idea that Brazos could purchase it as an asset and they can still control the operation and employees. Since Brazos can not only buy tangible assets but also intangibles asset which is Goodwill $34.7 million. Brazos
But for investors who own the callable bonds, costs of repo and short selling don’t exist. Conclusion: The existence of costs for taxation and transaction can only partially explain why arbitrage opportunity exists for a long time. It might be that the number of arbitrageurs is relatively small and they have inadequate capital, their ability to drive market prices to fundamental values is
Another weakness is that this non-profit “invests excess cash in investment grade marketable solutions” (Valley of the Sun United Way, 2013). With this type of investments there are risks involved. The risks and changes could also affect the numbers on the financial
Factors like the strength of the economy, activities of international investors, and foreign trade all have something to do with the change in supply and demand. Given the size and mobility, the flow of capital is a determining factor of how the exchange rates will comply. Once the influences mentioned above affect the interest rates, the exchange rates among the market determined currencies are also influenced because currencies are extremely vulnerable to changes in interest rates and sovereign risk factors. The key drivers of an exchange rate stem from international capital and trade flows, the interest rate differentials net of expected inflation, trading activities in other currencies, monetary policy and central banks, and financial and political stabilities. If local prices in a country increase more than prices in another country for the same product; being is that foreign exchange forward markets are linked to interest markets; then the local currency may decline in value via its foreign counterpart, presuming there is no change with the structural relationship between the two.
ETHICS IN PUBLIC ADMINISTRATION ABSTRACT We have become a society of increasingly fragmented policies because of the differing views of right and wrong. Those differing views of right and wrong have been viewed through the lens of capitalism. Capitalism, by definition, is the economic system in which all or most of the means of production and distribution are privately owned, it has been generally characterized by a concentration of wealth, growth of great corporations, and increased governmental control. The ethical and moral reasoning skills that public policy makers possess will define how public policies are administered. If some public policy makers can make decisions that do not benefit the public as a whole but benefit their personal capitalist goals, their decision making is unethical.
Discuss the assertion that market system is not able to allocate resources efficiently In this modern era, the economic system of communism has lost significance and recognition. In the sense that communist states are now moving from communist system to more of the market system whereas, the market economy resolves the basic economic problems through market means. The allocation of resources is determined by the market forces known as demand and supply. That is producers and consumers decide; ‘what to produce,’ ‘how to produce,’ ‘for whom to produce.’ Also in this system, there is little or no government intervention. However this economic system has its own disadvantage which limits the allocation of resources in system.
It is inefficient to product or achieves marginal benefits when marginal benefits are equal to marginal cost. Economics are not all about money and Business; people often perceive it to be this way. In real life, what economics is about, decision making. Economists are known to think margin while this seems complex notion in the beginning,
Once spotted, corrections can be made. The real problem is with imperfect multicollinearity. Multicollinearity is not a condition that either exists or does not exist in economic functions, but rather a phenomenon inherent in most relationships due to the nature of economic magnitudes. It can arise because there is a tendency for economic variables to move together over time. Also, there is an increasing tendency to use lagged variables of some explanatory variables e.g.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.