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Financial and Economic environment of South Africa. - Term Paper Example
Author : seamus49
Finance & Accounting
Pages 14 (3514 words)
Financial and Economic environment of South Africa.
The International monetary Fund and the World Bank have argued it to venture into globalization to increase its business operations so as to reduce its dependence on financial aids…
They also have security and safety implications and have effects on the transfer payments. Most ideas, principles and legal concepts used in international transactions often find expression in the legislative acts and policies of nation states. Although many forces besides economic factors help shape world trade, it cannot be denied that the economic component of international relations is the most significant and that generally, a prosperous and stable international business environment. Aspects of returns and risks From the website www.cia.gov, it evident that there are a number of aspects that affect the countries return and risk on investment to a business, some of this include; Ratio analysis used to obtain the company’s financial performance in many key areas. The ratios include the liquidity ratios that point out the easiness of turning assets into cash and they include current ratio which measures the financial power, the quick ratio which concentrates mainly on liquid assets whose value is sure, and working capital which is more of cash flow measure than a ratio. The leverage ratio shows the degree to which the business is dependent on debt financing. ...