INTRODUCTION The end of twentieth century saw the internet revolution with large number of IT and internet based firms coming into picture. Internet based start-ups made billions of money riding high on the dotcom boom. All the companies wanted to start its stores and operations online so as to cater to the growing number of online users. AOL was one such company that grew at a fast rate selling internet based services and products. AOL’s acquisition of Time Warner in 2000-2001 is considered as one of the biggest M&A deals in the corporate history.
This is what happened when the in 1997 when we first see a spike in economic activity. This spike in economic activity occurred due to the equity value rapidly rising due to growth in the internet sector and related fields. A combination of increases in; market confidence and stock prices would turn future profits, stock speculation and venture capital funds
The use of derivative instruments in corporate risk management has grown rapidly in recent years, caused partly by financial deregulation and partly by the success of the financial industry in designing a great variety of OTC and exchange-traded contracts. Derivatives enable their users to separate, value and transfer market risks. The use of derivatives, enhances the possibilities for active corporate risk management, which is likely to have an impact on profitability of the firm. What is Hedging? Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities.
Being the oldest surviving and most controversial theory in economics, the quantity theory of money has flourished over time in examining long run neutrality of monetary changes (Fisher, 1896: Cited by Dimand). Technically, the quantity theory of money denotes the direct correlation between money supply and price levels (Hume, 1752: Cited by Dimand). Money supply is the annual ratio of the stock of money in circulation or in liquid form to value of transactions performed . Also, price levels encompass the overall measure of prices in a country . Therefore, the quantity theory of money projects in simple terms that, if people hold too much money in liquid form for purchases, the price level of goods would rise up.
“The multinational corporation and international production reflect a world in which capital and technology have become increasingly mobile” - Robert Gilpin. Multinational corporation (MNC) or called as transnational corporation is an organization focusing on business concern with operations about productions or services in more than one country. It plays an important role in the contemporary global economy, and has developed in power and visibility in recent years over developing countries in particular, and developed countries in general (Eldridge, 2011). Therefore, it is incontrovertible that the advantages from multinational production are huge for MNCs. However, the rise of multinational production brings about both opportunities and threats
During Colonial era, power countries, (UK, USA, France, Germany, other EU countries), have drained their colonies (Africa, Asia, South America) of their resources to fuel up their development. This has led the great advancement of those countries in terms of technology, educational, health, and industrial, making them even more powerful and advanced. Towards late 1960’s most of the colonies have gained their independence. Meanwhile, the great power countries of the world need to carry on building their capital, through favorable trade agreements for cheap raw materials (boundless.com). The rise of globalization was the answer to the ongoing demand of resources (Puig and Ohiocheoya).
Outsourcing and Offshoring Outsourcing is the act of contracting a form of work from one business to another third party. The concept and practice of outsourcing has been around for a very long time. Outsourcing can include both domestic and foreign contracts, and has become more common due to the rise of the global economy. However, due to the purpose of outsourcing being the potential of saving on costs, and specifically saving production costs, the modern day trends have come to follow global outsourcing, specifically for low-labor-costs nations (Vonderembse & White, 2013). Outsourcing can also involve offshoring.
Bachelor Thesis The Sharing Economy´s Public Value - An Investigation of the Domains where Value Creation and Destruction takes shape Wanja Amling Liberal Arts and Sciences Tilburg University Thesis Advisor: Prof. Niels Noorderhaven Submitted July 10th 2015 Abstract Recent economic and societal trends, in connection with technological advances have given rise to the exponential growth of the sharing economy, a twenty-first century socio-economic model based on the sharing of goods and services via peer-to-peer market places. The sharing movement receives a considerable amount of attention, especially from the media, and is starting to play an increasingly important role in economic and social realities. This role, however,
Nowadays the trading of currency is increased and people invest their money in specific currency as per the future scope of profitability. Currency Exchanges monitor events all round the world and the currency rates are managed globally based on the economical valuation of any country’s currency. Main focus of this assignment is to identify
Because of growing tourism activities many places in the world are increasingly tied to the industry and related cultural, social, economic and political networks. The current global economic credit crisis, in addition, has underlined the impact of shifting economic fortunes on the global tourism