Finance Master - Essay Example

Only on StudentShare

Extract of sample
Finance Master

How is the significance of a country's economy assessed to draw such conclusions
To evaluate a country's economy, economists usually use the measure known as the current account. The current account is "the combined balances on trade in goods and services, income, and net unilateral current transfers" (Weinberg 2006). The worsening current account deficit must cause permanent depreciation of a national currency. To economists' surprise, in case of the US, the growing current account deficit produces periods of appreciation of the US currency. Such were the periods from 1995 to 2002 and 2005 (Roubini 2005).
Roubini claims that the current account deficits may be related to the appreciation or depreciation of a currency (2005). A national currency weakens when the inflow of capital in the country cannot fully finance a current account deficit, that is, the supply of financing from the capital account is low (Roubini 2005). As it is seen, capital inflows and outflows play an important role in this relation. Short-term and long-term interest rates, political risk factors, the GDP growth rate and other economic factors determine the capital flows and are the direct causes to the currency fluctuations. Roubini calls all these "the law of gravity" for a currency (2005).
Still, as it was mentioned above, sometimes the laws of gravity are defied (Roubini 2005). ...Show more


During the last two decades, the US trade deficit has grown very dramatically, giving concern that it may be detrimental to the national and global economies. The US trade deficit is determined merely by the balances between saving and investment in the country and in other outside countries…
Author : dmarks
Finance Master Essay essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Finance Master Essay"
with a personal 20% discount.
Grab the best paper

Related Essays

Leadership Master Essay
Fred Fiedler developed the first contingency model for leadership, known as The Fiedler contingency model. It is suggested the model is "the most comprehensive programme of research ever conducted on leadership" (Fiedler, 1967, as cited in Elkin and Inkson, 2000, p.
8 pages (2000 words) Essay
Article Critiques on Finance Master Essay
Though unemployment rates have in the main improves since 1994, some countries have lagged behind the OECD average, notably France, Germany and southern Europe. There are also concerns that not enough is being done to bring women in to the work force; nor are efforts being made to retain older people in service.
5 pages (1250 words) Essay
Business Plan Master Essay
It gives instant feedback on a department's performance in terms of staffing hours. Full co-operation is a key to the success of this system. Financial budget is a set of revenue and sales projection at various production or sales volumes. Cost allowances for each expense vary as sales or production vary.
4 pages (1000 words) Essay
Strategic Management Master Essay
Tesco has expanded its operations from traditional UK based supermarket in to new products and services that include consumer electronics, personal finance, telecoms, internet shopping and health insurance. It has more than 300 stores in twelve worldwide markets and it now has developed in to a renowned international retailer standard.
8 pages (2000 words) Essay
Corporate Finance Master Essay
However, it is not the only factor. The most important aspect, perhaps, is the close complexity of relations and interdependence between payout policy and major part of the financial and investment decisions the companies make: Management and the board of directors must decide the level of dividends, what repurchases to make (and the mirror image decision of equity issuance), the amount of financial slack the firm carries (which may be a nontrivial amount; for example, at the end of 1999, Microsoft held over $17b in financial slack), investment in real assets, mergers and acquisitions, and debt issuance.
5 pages (1250 words) Essay
International Corporate Finance Master Essay
From the list above, it would be advisable to undertake a forward contract hedge since it offers the least cost for the company. The plan calls for a forward exchange rate of $1.48 / agreement with the UK supplier for a 90- day due date. This financial agreement is a swap that involves the exchange of principal and interest in one currency for the same in another currency after a specific period of time.
12 pages (3000 words) Essay
Nursing Practice Master Essay
The third is that cnceptual cmpartmentalizatin in science ften leads t a dissciatin with the previus wrk in the field. These things are cnsidered f scientific relevance t the develpment f high quality nursing service. The impetus fr this paper was the idea that the cncept f evidence-based nursing represents smething f a paradx.
8 pages (2000 words) Essay
International Finance Master Essay
This is an early-warning sign of a speculative attack on the currency designed to force a revaluation, or a strengthening of the local currency's exchange rate with the dollar. The paper outlines what the nation can do to ward off speculation, minimize the potential for inflation - identified as an economy's worst enemy - and at the same time improve its standing in the world economy.
10 pages (2500 words) Essay
Market Research Master Essay
And, in the age of the information revolution, the quality of strategic decision-making is greatly influenced by the quality of information available for analysis and appropriate decision-making. The need for quality information, needless to say, suggests the significance of marketing research in strategic marketing decision-making and in ensuring business success, particularly so in the present business environments characterised by the pressures of global competition and fast paced changes in information and communication technologies as well as constantly evolving marketplaces and consumer choices.
10 pages (2500 words) Essay
Admission essay
g to be a graduate of Master of Finance would be the fact that unlike the mature finance market in the United States, the market in China, where I come from is still in its youth. A huge part of me wants to serve my fellowmen in China by being able to be of service to them in
2 pages (500 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email