StudentShare solutions
Triangle menu

Finance project 2 - Essay Example

Nobody downloaded yet

Extract of sample
Finance project 2

This means that the products produced within Hungary are sold to other countries in fewer quantities and monetary amounts than the products purchased from those nations. Since all the transactions are carried out in US Dollar, this trade deficit would increase pressure over country’s foreign reserves thus demand from importers (for dollar) will surge and would possibly result in lowering the monetary value of Hungary currency. Perhaps, the most important factor that could result in increasing trade deficit is reversal of international oil and commodity prices because today international economies are coming out of recession and are demanding more oil, food and other commodities to fulfill their domestic needs and oil requirements. Oil prices have already recovered to a level of 75-80$ per barrel and are expected to increase further in near future in the wake of better economic outlook and forecasts. This would put great pressure over Hungarian government because it would increase the trade deficit and further deteriorate HUF-Dollar parity.
The dollar-HUF disparity (at present the exchange rate is 170 HUF per dollar) is perhaps a major reason of inflation (higher prices) which currently stands at 3% and could increase in near future amid higher international prices of various products. The rule is simple and clear: the higher the exchange rate, the more expensive the imports and prices will observe an upward trend in domestics for these imported products thereby causing inflation. Moreover, the rise in prices will also lower down the purchasing power of people in Hungary; therefore, would result in greater unrest and lower economic growth. People are bound to cut down their expenses to improve their savings. On the flip side, the weakening of US Dollar against international currencies such as Euro, Pound, Japanese Yen etc because of USA’s surging trade deficit and various internal factors might not aggravate the exchange rate in Hungary and could therefore ...Show more

Summary

There are different factors that might lead to devaluation of currency across Hungary such as soaring trade deficits, higher prices or inflation, decrease in foreign remittances, decrease in Foreign Direct Investment (FDI) and subsequent decline in inflow of dollar which is used…
Author : yjohnson
Finance project 2 essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance project 2"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Internationa project finance law
“Malaysia, a middle-income country, has transformed itself since the 1970s, from a producer of raw materials into an emerging multi-sector economy. Under Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020, and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services”1 In the year 2007, Malaysia’s economy was the 3rd main financial system in South East Asia, and the 28th biggest economy in the world, by purchasing power parity among gross domestic products for the year 2008.
20 pages (5000 words) Essay
Finance Project
The project aims to find the feasibility of the project after a critical financial analysis. The risk inherent to implementation of the project is also being considered and the impact of the risk on the facility to be generated is also considered. The final decision underlying the acceptability of the project is considered after taking all the factors in consideration.
5 pages (1250 words) Essay
Business finance-2
In the current investment world, people have different investment aims. One of the most renowned motives is earning income or returns on the investments value. However, economic research shows that using returns alone in selecting best investments option is not adequate.
20 pages (5000 words) Essay
Finance project
Its hotels and lodging services include both company operated as well as “franchised properties” and their revenue earnings for the fiscal year 2012 have registered a whopping “$12 billion” (par.1). The company’s headquarters is located in Bethesda, Maryland, USA and it is “founded by” J Willard and Alice Marriott and led by “Marriott family leadership” for over eighty years (par.1).
3 pages (750 words) Essay
Project Appraisal & Finance
We begin the first part with a summary of the case and a brief discussion of important concepts related to financial investments, the purpose and methods of investments, how investment decisions are made, and the financial tools available for such decisions to be made.
18 pages (4500 words) Essay
Corporate Finance 2
Another school of thought believes that dividends are adverse for the average shareholder as they attract taxes and cause fiscal disadvantages. Last but not the least the third group lauds large dividends as positive signal to shareholders that all is well.
23 pages (5750 words) Essay
Finance Project
Less prevalent was compensation tied to firm's performance, such as stock and/or stock options. Historically, performance-based compensation was designed for corporate executives and officers of the firm. This form of compensation helped align the interests of management and shareholders.
13 pages (3250 words) Essay
Corporate finance 2
that dividends have nothing to do with firm value because there is no tax disadvantage to an investor to receiving dividends, and that firms can raise funds in capital markets for new investments without having to go through high issuance costs. Another school of thought
23 pages (5750 words) Essay
MGM625-0903A-01 Applied Finance for Decision-Making - Phase 1 Individual Project 2
This report aims at analyzing the balance sheet with special focus on the working capital, current ratio, short–term and long-term debts, in order to identify potential issues and concerns. The working capital of the firm is
2 pages (500 words) Essay
Personal finance project
With increased globalization, the world has become more complex in the financial world. Banks offer a huge range of investment options and so do the different markets. Currently,
13 pages (3250 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment