This website uses cookies to ensure you have the best experience. Learn more

International Finance Essay

876 words - 4 pages

International Finance
May 10, 2015
U.S International Debt
Please look at the International part of the U.S. Government debt and discuss, 1) why the country has had to rely on International lenders, 2) why the situation with the International lenders may have caused the U.S. Federal Reserve System to initiate Quantitative Easing, and 3) give your opinion of the possible future state of the U.S. economy as it relies on International lenders. This future state should cover government issues, corporate issues, and individual issues.
The history of international lending to developing countries shows surges of lending and recurrent financial crisis. Consequently, international lenders have ...view middle of the document...

Basically the government invest in public sector by building schools, better roads, and hospitals. This type of investment give a return on the investment which helps to increase economic growth and productive capacity (Pettinger). Like investing in public sector, flexibility is another important reason of why the United States count on borrowing abroad. When borrowing abroad the government do not have to cut back on spending in order to meet a temporary deficit. In this case borrowing could be like an overdraft facility and that means that the government can keep wages and spending commitments without having to cut spending (Pettinger). Like investing in public sector and borrowing to get more flexibility, political reasons is other important reason of why the United States borrow abroad. According to Pettinger, the main tendency to borrow comes from political pressures. Citizens and voters often support the idea of decreasing government debt through borrowing from international lender, but when it comes ideas like higher pension age and lower benefits, they usually break down and it is likely to hit people with interest in keeping low taxes and spending. Generally, government deduces that relying on international lenders is less politically damaging than increasing taxes (Pettinger). Finally, I can say that borrowing is a healthy option as long as the government can meets its debts.
During the crisis and recovery of the United States economy, many central banks were forced to follow unconventional monetary policies, including the quantitative easing. International lenders may have caused the United States Federal Reserve System to initiate Quantitative Easing because they still need to make profit and in tough time the gap between the official interest rate set by the central bank and the rates faced by...

Other assignments on International Finance

International Finance Management Answer 1 Essay

667 words - 3 pages FINC3011 Tutorial 1 B&H Chapter 2 Questions 1, 2, 3, 4, 5, 6 & 9 1. What is an exchange rate? Answer: An exchange rate is the relative price of two currencies, like the U.S. dollar price of the euro, the Thai baht price of the Malaysian ringgit, or the Mexican peso price of the Canadian dollar. 2. What is the structure of the foreign exchange market? Is it like the New York Stock Exchange? Answer: The interbank foreign exchange market is a

International Trade And Finance Speech Eco 372

1402 words - 6 pages Efficiency and Collaboration Proposal BIS/220 October 19, 2011 Efficiency and Collaboration Proposal Party Plates has grown significantly within the last two years and the current Excel system, excel, cannot keep up with all data. In order to improve the efficiency of the current information systems used in Party Plates, the antiquated system needs to be upgraded to a much more efficient system such as Microsoft Access. The


797 words - 4 pages A B. Finance Specialization Requirements (12 semester hours): Term Two (spring) | | | IMB 531 Portfolio Analysis and Management I: Equity | (2) | | IMB 532 Portfolio Analysis and Management II: Fixed Income | (2) | | IMB 533 Portfolio Analysis and Management III: Derivatives and Financial Risk Management | (2) | | IMB 536 Global Macroeconomic Trends and Financial Institutions or CSB Elective | (1) | | IMB 534 International

Justification Report

506 words - 3 pages To Mr.Wang According to my research to current economic journals in market, I recommend ‘American Economic Review’ as the magazine our company should order for employers to read. We are a public company; our employers should not only focus on their own work, but also have some knowledge of economic or finance to assist CEO to make right decisions for company, and enhance their comprehensive working ability. I have chosen three journals to


690 words - 3 pages companies; International finance—involves investors, companies, business operations, and capital markets that may be located in different companies(Cornett, Adair, & Nofsinger, 2014,). 2. What are the three basic forms of business ownership? What are the advantages and disadvantages to each" (Cornett, Adair, & Nofsinger, 2014, p. 21)? Partnership is an organizational form that has multiple individual owners. Each partner can own a

Case Study

347 words - 2 pages account transactions. While the World Bank’s role was to finance post war reconstruction in devastated economies and thereby to promote long term economic stability. There are powers that should be granted to these international institutions. First is the voting power at both IMF & the World Bank. Another is dollar as a centerpiece of the new international exchange rate mechanism. And lastly, these are the one who will give basis on what domestic

International Political Economy

285 words - 2 pages significant work examining the results of trade deals), development, the relationship between democracy and markets, international finance, global markets, multi-state cooperation in solving trans-border economic problems, and the structural balance of power between and among states and institutions. Unlike conventional international relations, power is understood to be both economic and political, which are interrelated in a complex manner. IPE emerged as a heterodox approach to international studies during the 1970s as the 1973 world oil crisis and the breakdown of the Bretton Woods system alerted academics, particularly in the U.S., of the...

Public Finana

2612 words - 11 pages Public finance is sometimes synonymous with government finance. It deals with budgeting the revenues and expenditures of a public sector entity, usually government. Public finance also can be defined as the raising of money by governments through taxes or borrowing and the spending of it. In Japan, the national budget and other basic matters on public finance are governed by the Public Finance Law, 1947 (Law No. 34, Apr. 31, 1947), which has


1394 words - 6 pages FRBM ECS EDMU EEA EEC EEFC FRN FSS FWG x Manual on Financial and Banking Statistics Abbreviations GDP GDR GFD GFS GIC GLS GNIE Gross Domestic Product Global Depository Receipt Gross Fiscal Deficit IFC IFC(W) IFCI International Finance Corporation International Finance Corporation (Washington) Industrial Finance Corporation of India Investment Fluctuation Reserve Account International Financial Statistics Iterative

Mr Praveen

862 words - 4 pages international business will be an integral part of my job as an entrepreneur, it is essential that I fill in these gaps. The NAME School's MBA program is the perfect bridge from where I am to where I want to be. I am attracted by the inventiveness and uniqueness of its entrepreneurial and finance programs, and believe that I will increase my practical knowledge of entrepreneurship by interacting with my classmates. I value the fact that at NAME


536 words - 3 pages , and the importance of trust. Environmental Perspective - Speakers are selected to provide a historical perspective of NASA’s evolution and to illuminate key business environments such as Congress and the international and commercial space sectors. Finance - With the implementation of full cost accounting, NASA is changing its internal financial practices to become more like industry. In a four-hour session, attendees are given a summary course on

Similar Documents

International Finance Essay

1171 words - 5 pages Dozier Hedging Alternatives Forward Market Hedge: Dozier would purchase U.S. dollars under a forward contract. The contract would obligate Dozier to pay £1,057,500 in exchange for £1,057,500 x 1.4198 $/£ = $1,501,438.50 assuming the transaction was at the quoted 3-month forward rate in Exhibit 4. Relative to the value of the contract at the current exchange rate, £1,057,500 x 1.4370 $/£ = $1,519,627.50 Dozier would

International Finance Essay

625 words - 3 pages decrease exchange rate volatility. Thus, they intervene because changes in the exchange rates that occur can affect the health of their markets and financial systems as well as inflation and economic growth, and they of course don't want that. 4. What is fundamental analysis in macroeconomics, not finance? Fundamental analysis (in macroeconomics) looks to measure the value of an investment by examining related economic factors. These factors include rate of inflation, interest rates, GDP rate, and unemployment level. Fundamental analysts assess the overall conditions of an economy to understand any and all factors that may affect the value of an investment. 

International Finance Essay

5524 words - 23 pages ) or a Transnational Company (TNC) or International Business (INB). Multinational Companies (MNCs) are defined as firms that engage in some form of international business. Their managers conduct international financial management, which involves international investing & financing decisions that are intended to maximize the value of MNC.” An enterprise operating in several countries but managed from one (home) country is called a

International Trade And Finance Speach Essay

357 words - 2 pages Exports: Chrysler, Ford and GM are the top automotive manufacturers in America. When the top three automobile manufacturers began to see a decline in their sales, shortly afterwards it lead to a trade deficit and soon after that a drop in employment (Thompson, 2010). When America cannot sell goods to other countries this causes a surplus of domestic goods. In the case of automobiles if there is a surplus there production will slow and