Got a tricky question? Receive an answer from students like you! Try us!

Financial Deregulation and Capital Control - Essay Example

Only on StudentShare

Summary

This paper “Financial Deregulation and Capital Control” will attempt to discuss important aspects of international financial markets which have led to bring such development. The overall discussion will be presented in four major sections followed by a concluding remark. …

Extract of sample
Financial Deregulation and Capital Control

The importance of the financial deregulation has started to rise with increasing opportunities in the global market place. Financial deregulation can be referred as abolishment of restrictive laws that often cause barriers for the financial institutions. Financial deregulations are important and similar as the free trade policies. Both, the financial deregulation and free trade policy strive to bring development in the market by increasing competition Hope and Maeleng have defined the free trade policies as “competitor-enhancing device” as it is meant to discard the unnecessary restriction and barriers by offer better opportunities to the international as well as the domestic business organizations (Hope and Maeleng, p.61). In the same manner, the financial deregulation strives to offer freedom to the financial institutions for the better performance of industry that will further bring a positive impact on the entire economy.
On the other hand, the capital control is the process of the taking necessary steps for regulating the limits of the capital inflow as well as outflow. In order to implement capital control within an economy, the regulatory bodies uses the certain economic tools like taxes, interest, FDIs, volume restrictions, tariffs and other market based forces. The capital control have an direct impact on the financial assets classes like bonds, equities, mutual funds, foreign exchange rates etc. ...
Download paper

Related Essays

Financial Analysis of Capital Structure
The decision regarding finding the optimum mix of equity and debt capital depends on capital spending, expected returns, optimum levels of debt, liquidity, cash levels, interest rates and risks, and dividend policy (Mallicoat, 2011). The following is a snapshot of the possible Capital Structures that Competition Bikes Inc. could acquire while expanding to Canada. The following were the alternatives available while choosing the right Capital Structure mix: 1. Capital Structure consisting only of bonds 2. A capital structure consisting of only stocks, with 50% preferred and 50% Common Stock 3.…
5 pages (1255 words)
Globalization and Internation Financial Crisis
This consolidation of global relationships is at the level of individuals, companies, institutions and countries (Campenhout and Cassimon, 2012). The main causes of the process of globalization are the technical progress in the communications and transportation sections, as well as, the political decisions on liberalization of world trade. The study of International Finance is of particular significance in today’s globalized financial marketplace. International finance is a branch of international economics and focuses on the monetary side of the international economy. The…
7 pages (1757 words)
Financial Analysis and Control Systems
Importance of Working Capital Management in Budgeting There are various ways of developing working capital and working capital management. These starts with the simple duty of assessing the expenditures, revenue sources and the pending debts on daily, weekly, monthly or yearly basis. It is followed by planning before hand on how to strike a balance between these variables. To provide more cash for working capital management there is need to lower the costs of production whilst putting at level the sales revenue so as to increase the profit margin. Problems related with short term working…
3 pages (753 words)
Business venture to enter the UK supermarket market
As mentioned above, the payback period for the loan exceeds the maximum tenor available. …
7 pages (1757 words)
EUROPEAN FINANCIAL CRISIS AND FINANCIAL MARKETS
Acharya (2013) observes that a combination of factors led to the emergence of the European Union Financial Crises of 2010-2013. These factors include availability of easy credit conditions which occurred during the periods 2002-2008, and they led to high risk borrowing and lending practices. Patomaki (2013) believes that other factors include globalization of finance, imbalances in international trade, poor governmental fiscal policies, the economic recession of 2008-2012, and ineffective methods used by these nations to bail out troubled financial institutions. Acharya (2013) observes that…
6 pages (1506 words)
Financial Management & control
The company has not been able to earn more from the money of its shareholders. In 2011, it has earned approximately 30% lesser than 2010 from the money invested by its shareholders which resulted in a decline in return on equity. The debtors’ collection rose by 47 days over the previous year which means that in 2011, the company now required 130 days to get the money from its debtors which it did in 83 days in 2010. This not only blocks the money for the company but also makes the company lose on the interest of the money blocked with the debtors. The chance of the debtors going bad also…
11 pages (2761 words)
Financial Control
It is mainly a measurement framework that adjoins measures that are not financial to conventional financial methods to offer a balanced feature of organizational performance. However, there has been a disbelief of this system in implementing it in small-medium manufacturing enterprise (SME). The disbelief concludes that Balanced Scorecard requires an organization with an advanced strategic planning process to realize its whole benefits. In demystifying that idea, this paper digs into the feasibility of applying the Balanced Scorecard process in the small-medium manufacturing enterprises…
7 pages (1757 words)