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Module 4: Case,SLP, & Threaded Discussion - Essay Example

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Module 4: Case,SLP, & Threaded Discussion

This discussion aims at the business world and the concept of risk or uncertainty, or both, that affects the decisions made at a daily basis and affect the economy at a global level, as well as the lives of many.
Frank Hyneman Knight (1885-1972) was one of the most diverse and influential economists of the twentieth century. He laid the foundations for significant theories such as the modern theories of financial markets and entrepreneurship. He was also a teacher, and with this role, he helped establish the Chicago school of economics. (Emmett)
Knight’s Doctoral thesis, titles Risk, Uncertainty, and Profit, was published in 1917. In it, Knight looked into the relation between the ongoing changes in the economy and the knowledge that people possess about it. He discussed two very important forms of ‘changes’ that he called risk and uncertainty, as the title of the thesis suggests. He said that ‘risk’ came from known conditions and incidents that have happened repeatedly over time and people have found ways to deal with these changes through co-operation and collaboration. Uncertainty, on the other hand, cannot be insured and is a change we cannot fully anticipate or determine the probability of. (Emmett, n.d)
Today, we see that our world has become a global village. Business, just like every other aspect, is going global as well. Since global conditions and international business is so independent on one another, risk and uncertainty have become big concerns. The measurement and management of “risk” has become one of the major concerns of all financial institutions and their regulators, especially since the collapse of Long Term Capital Management (LTCM) in 1998. (Janeway, n.d)
So we can see that in a globalized business world of today, a single event can create a chain reaction and affect many economies. Let us take the example of the Terrorist attacks of the September ...Show more
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A visitor is anyone who rings the doorbell. It can be anyone from guests to the mail man or anyone who decides to pay a visit. However, this does not include the residents themselves. I…
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