(solved) Assignment on Business
Added on 2020-04-15
22 Pages4901 Words35 Views
|
|
|
Running head: BUSINESSBusinessName of the StudentName of the UniversityAuthor Note
1BUSINESSExecutive Summary This report consists of the evaluation of the financial market. As a junior consultant, thereis a need to know the requirement of finance for trade and investment in an Internationalinvestment organization. The manager of the firm having its head office in London is very eagerto sign in the contracts with the new prospective clients since there are many opportunitiesavailable from the emerging markets .The clients have visited the head office in London and theyare very keen on the fact that they wants to have knowledge about finance and investmentAccording to the structural approach, the economic system of a scaling-down consists ofthree key mechanisms firstly, the monetary markets secondly the economic institutions andfinally the monetary regulators, both of the gears acting a limitation position in theeconomy.Accordingly the monetary markets facilitate the flood of burial in direction to financemoney by corporations, governments and individuals. The report explains the allocation of capital within the domestic economy and theemerging economy, United Kingdom and China respectively. The analysis of this project hasbeen done taking into consideration the stock market, debt market and the management of assetsexplaining the fiscal policy of the Countries. In the last part of the report, the emerging markettrends have been explained and the challenges faced by the emerging economy due to the rapidchanges in trade and industrialization are conveyed.
2BUSINESSTable of ContentsTable of Contents.............................................................................................................................2Introduction......................................................................................................................................3Background of financial markets.....................................................................................................4Capital allocation within domestic economy (United Kingdom)....................................................6Capital allocation within international markets (United Kingdom)................................................9Evaluation of the emerging economy (China)...............................................................................11Development of the Chinese resources..........................................................................................12Challenges faced by China due to industrialization and trade policies.........................................15Conclusion.....................................................................................................................................17References......................................................................................................................................18
3BUSINESSIntroductionThe report explains the structure of the financial market and how the economy doesoperate. The monetary system acts as a source in the budget by stimulating fiscal growth therebyinfluencing financial feat of the actors, moving cost-effective welfare. This is achieved by fiscalinfrastructure, in which entities with money allocate folks burial to folks who engage inpotentially further productive customs to invest individual’s funds. A monetary system makes iton the cards an added useful route to handing over the funds (Madura 2014).Finance is crucial for growth and improvement of the economy. The whole of theeconomy depends on the exports and imports which is a part of trade, finance and investment.After the creation of World Trade Organization, the trade is open and the agreements are signedby many parties so that trade is free and there is no restrictive practices performed by any of theCountries. These polices if WTO have helped lot in the advancement and improvement of theeconomy. Many companies are opened to help the people of different Countries to come intoagreement for doing and commerce (Valdez and Molyneux 2015). Almost all the items aretraded nowadays after the invention of WTO in 1995.This helps one to get the products of otherCountries; this increased the trade of the products of various Countries.
4BUSINESSBackground of financial marketsFinance is the life blood of economy. Financial Management, as a discipline, isinterlinked with other activities that occur within a business organization such as production,marketing, purchasing, personnel functions, and etc. Depending on the organization and theindustry in which it operates, this function may do simple or complex. The finance functionconsists of the people, technology, processes, and policies that dictate tasks and decisions relatedinto financial resources of a company (Grinblatt and Titman 2016).The financial market consists of financial assets, and the securities, debt and equitymarket. The financial system helps in the facilitation and allocation of funds which helps in theprogress of the economy.The financial sector consists of two types: 1.Concrete components and.2.Financial Intermediaries and Institution Concrete components include all aspects of infrastructure including technology, softwareapplications, and processes, as well as the people who manage them (Sornette 2017). Softcomponents include the standards, strategies, models, and vision that drive the finance oraccounting aspect of the business. Each component stands on its own into an extent; however,ultimately all components must do woven together in a way that serves the overall organizationobjectives. It is not enough that all component parts exist; rather they must exist in harmony withone another, yielding synergies that serve the company's needs today and provide for the future.The financial Institutions are:
5BUSINESSFinancial instruments are crucial constituents of the financial market and this helps toclaim for future income. Financial market instruments are as follows:Money market instruments- These are those instrument which are easily converted intocash at a minimum cost. The money market consists of the call money, term money, treasurybills, commercial paper and certificate of deposits. Capital market instruments- These are in the form of equity shares, preference sharesand non convertible preference shares. Instruments of equity market in equity segments involvezero coupon bonds, debentures and deep discount bonds (Levinson 2014).Cash instruments- Cash instruments are those which are transferable having its valuederived from the market. Deposit accounts, loan and receivables are also financial assets andcash instruments. System (stock market how does it work)Derivative instruments- The value of derivative market instruments are those which arederived from underlying entities such as index, assets and the interest rate.Hybrid instruments- Hybrid instruments are those instruments having both the featuresof debentures and equity such as the warrants and the convertible debentures (Moloney 2014).
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents