Essay from the year 2003 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,5 (A), Oxford Brookes University (Business School), course: Synoptic Essays in International Banking & Finance, 36 entries in the bibliography, language: English, abstract: After the collapse of the Bretton-Woods-System in 1973 and the transition to a system of floating rates between the major global currencies, central banks still use interventions for exchange rate maintenance. This paper aims to examine the function of Central Bank operations in foreign exchange markets on the basis of two empirical data sets, explaining both, appreciation and depreciation. It tries to analyse the impacts on capital flows recorded in the balance of payments and the efficiency of interventions. Further it will analyse the impacts on domestic monetary supplies and if necessary how to sterilise these effects. At certain stages endnotes will refer to the appendix for more detailed explanations or data. To illustrate, how central bank interventions work, we will take the European Central Bank (ECB) as an example and concentrate on two currencies, the euro (€) and the US dollar ($). [...] If the ECB aims at an appreciation of the own currency, the bank will engage in a foreign exchange operation and buy euros against its US dollar reserves. The demand for euros increases (demand curve shifts to the right) and simultaneously supply is reduced, because the ECB takes Euro out of the market (supply curve shifts to the left). Through the forces of supply and demand the value of the euro will strengthen in international markets (the exchange rate moves from r1 to r2). Depreciation (see diagram 2) If the ECB aims at a depreciation of the own currency, the bank will sell euros against dollars. In this case, demand for euros declines (demand curve shifts to left) and the supply increases (shift to the right) because the ECB pays the purchased dollars in euro. Again, the forces of supply and demand determine the new exchange rate at r2. The value of the euro will weaken in international markets (and inversely the US dollar value will rise). [...]
Essay from the year 2003 in the subject Business economics - Accounting and Taxes, grade: 1,5 (A), Oxford Brookes University (Business School), course: International Financial Accounting, 37 entries in the bibliography, language: English, abstract: This essay will compare and contrast the accounting systems of Germany and the United States of Amerika. First the single systems, their core concepts and purposes will be introduced. Second, the two core concepts of conservatism and true and vair value will be presented. Both systems will be examined in order to show how they incorporate these concepts and how this might affect the calculation of profits. Where data is available, selected examples from published company accounts will be shown. Finally some short comments on how the systems come closer to each other since several german companies aim for crosslistings in both countries. A conclusion will summarize the main facts. Different accounting systems might come to different results in their calculations of profits. This can be shown by drawing an example from the Siemens AG’s annual report 2000. In their report based on German GAAP (General Accepted Accounting Principles) the net income in 2000 was 7,901 million €. The same calculation based on U.S. GAAP amounts in the F-20 report for the Securities and Exchange Commission (SEC) to 8,860 million € (see figure 1). Now the Question is how come this difference of nearly 14%? Is one system more exact? [...] As we have seen in assignment 1, accounting is not a science. It has been developed to serve a purpose. Accounting systems are influenced by several social and economic factors (Radebaugh and Gray, 1997). [...] It seems that German GAAP and US GAAP have different objectives. Therefore we will analyze the two systems in their national contexts now.
Essay from the year 2005 in the subject Business economics - Business Management, Corporate Governance, grade: 1.0, The University of Chicago (GSB Chicago The University of Chicago Graduate School of Business), 2 entries in the bibliography, language: English, abstract: “I’ll make him an offer he cannot refuse” Vito Corleone (Marlon Brando) in The Godfather I Telling the compelling story of an Italian crime family, the Corleone Family, named after the town of its Sicilian origination, the Trilogy of The Godfather has become one of the greatest sagas in movie history. Written by Mario Puzo and directed by Francis Ford Coppola, the 10 hour epic narrates the story of eight-year old Vito Andolini (Brando), escaping from the town of Corleone out of a deadly threat of a local mafia killing. Being sent to New York at the break of the 20th century he makes his way to the top of the five New York mafia families. Now feared and respected, Don Vito is known by all as the Godfather. In the course of the trilogy the aging Don rules his empire with the aid of his four sons: quick-tempered Sonny (Caan), weak Fredo (Cazale), Ivy League-educated Michael (Pacino) and adopted Tom Hagen (Duvall), nearly each of which comes to a death tragically connected to the heritage of his father. As the next generation Don of the family, “Commendatore” Michael grabs for the power and expands the business beyond the US national borders becoming the ruthless and fiercely powerful head of a conglomerate of drug and gambling businesses, backed by top-level corruption, killings and betrayal. Distinct to common gangster movies, the often colliding interests of old friends, business partners and enemies makes this movie a fine tuned masterpiece on the complexity of friendship, trust, honor and politics. For the purpose of this paper, prior knowledge of the movie eases the understanding of the sometimes long reaching and fine notions in the characters actions. Nonetheless the presented background information on the course of actions will be sufficient to enable the reader to fully understand the implications of each analyzed move. Subject of this analysis will be the Don’s reach for the control for an international business conglomerateImmobiliare.Several parties are striving for this position in the third part of the epic, often using third parties for their moves, following different but not always mutually exclusive objectives. [...]
Essay from the year 2002 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,9 (B+), Oxford Brookes University (Business School), course: International Finance & Investment, 24 entries in the bibliography, language: English, abstract: Ever since in the history of stock markets, financial theorists try to understand how investors take decisions under uncertainty in order to value stocks precisely and predict their future returns. Their wish to develop a consistent model gave raise for various theoretical approaches and empirical examinations. This work tries to give a short overview on the traditional theory of asset pricing and discusses the need for a paradigm change due to the recent development in the US and UK stock markets.
Essay from the year 2003 in the subject Business economics - Accounting and Taxes, grade: 1,8 (A-), Oxford Brookes University (Business School), course: International Financial Accounting, 27 entries in the bibliography, language: English, abstract: “Accounting is not a science: It has been developed to serve a purpose”. A statement that might be controversially discussed nowadays since the collapse of the socialism, growing globalisation and the convergence of international financial markets have forced national accounting systems to change during the last decades. This paper will examine the validity of this statement in particular on the example of the recent development in Poland. First it will briefly introduce the social and economic environment in Poland under socialism, its transition to a market economy and the current situation and future prospects. Second, the economic and social development of Poland will be related to changes in the polish system of accounting and financial reporting. A short view on the development of the accounting profession will be given. Finally, a conclusion will compare the given statement with the polish situation and give proof for its validity. After World War II Poland introduced a planned economy urged by the Russian paradigm. Private property was restricted to agriculture, manufacturing and few business services. In the late 70th Poland went into serious economic struggles emerging from a high level of public debt from reinforcing the industrial sector. Poland had to face sustainable inflation problems which finally lead to the breakdown of the communistic regime (Roberts et al, 1998b). It was replaced by a coalition government under leadership of the trade union movement „Solidarnosc“ in 1989. [...]
Essay from the year 2003 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,9 (B+), Oxford Brookes University (Business School), course: Practise of International Banking, 21 entries in the bibliography, language: English, abstract: Derivatives trading is now the world's biggest business, with an estimated daily turnover of over US$2.5 trillion and an annual growth rate of around 14 per cent (Swan, 1999). Derivatives markets have ancient origins, and a long and complex history of trading and regulation. This work examines the history of derivatives and their impacts on the structure of international banks in order to show the implications of modern international banking in comparison to domestic banking. Mishkin (2003) describes banks as financial institutions that accept deposits and grant loans. In this definition banks are the financial intermediaries that the average person contacts most frequently for its financial dispositions, savings, investments and payments. The structure of a bank therefore seems to be adjusted to the purpose of its business activity. Mishkins traditional definition of a bank includes to those financial institutions we refer to as mutual savings banks, savings and loan associations, commercial banks and credit unions. Their traditional core business is to provide the settlement of national payments and to transform funds from savers over time as well as to process market information (Canals, 1997). They focus on domestic or regional, eventually even local markets and realize their profits from interest margins and balance sheet activities. Therefore they employ an asset- and liability management in order to avoid liquidity and credit risks.
Essay from the year 2003 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,4 (A), Oxford Brookes University (Business School), course: International Investment & Finance, 16 entries in the bibliography, language: English, abstract: Since the euro has been introduced as the common currency of the European Monetary Union (EMU) exchange rate policy-making has not been noticeably mentioned on the agenda of the European Central Bank (ECB). This work examines and explains the development of the euro since its introduction in 1999. A discussion of possible exchange rate regimes, their impacts on domestic and international trade and living standards, as well as a brief introduction on market intervention will put forward a recommendation to the ECB for its future exchange rate policy. Since most of the past currency crises emerged from monetary systems of fixed exchange rates, empirical data suggests a non fixed external regime to the EMU, even more since this allows a range of steering and counteracting opportunities. Following the Keynesian monetary theory, the forces of supply and demand are not always sufficient to guarantee a stable and sound economic environment for successful trade and growth. Therefore a free floating system of exchange rates might not be the right way for the ECB to follow its aim of price stability and competitiveness in a highly integrated area as the EU. We recommend employing an external managed floating system at a reasonably high level of currency value, i.e. purchasing power, depending on the situation of employment and export-import balance. The ECB should carefully carry out market interventions, limited by international exchange rate agreements, e.g. by the G-10 Nations summits.
Studienarbeit aus dem Jahr 2005 im Fachbereich BWL - Unternehmensführung, Management, Organisation, Note: 1,1, Handelshochschule Leipzig gGmbH, 3 Quellen im Literaturverzeichnis, Sprache: Deutsch, Abstract: Picot et al. (2003) leiten den Bedarf nach wirtschaftlichem Handeln zur individuellen Bedürfnisbefriedigung im Wesentlichen über die Erkenntnis der Übernachfrage knapper Ressourcen her. Die resultierende Marktreaktion zur Milderung dieser Knappheit und zur Nutzenmaximierung der eingesetzten Produktionsfaktoren erfolgt hiernach primär in Form von Konsumverzicht für Investitionen (Produktionsumwege), Effizienz- und Effektivitätssteigerung durch Innovation, sowie Produktivitätsteigerung durch Arbeitsteilung und Spezialisierung. Der letztgenannte Ansatz zur Arbeitsorganisation erfordert mit steigender Zerlegung und Spezialisierung des Wertschöpfungsprozesses ein Element der Einteilung, Steuerung und Kontrolle, bekannt als Organisationsproblem der Unternehmensleitung. Picot et al. differenzieren hier nach der Art der fehlenden Information: Während mangelndes Wissen über die notwendigen Arbeitsschritte auf den einzelnen Wertschöpfungsstufen zu Koordinationsproblemen führt, resultiert mangelnde Anreizkompatibilität der Akteure zu Motivationsproblemen. Mit Hinsicht auf die in der Aufgabenstellung dargelegte Trennschärfe zwischen den wählbaren Betrachtungswinkeln zur Organsationsform des internen Marktes soll sich die transaktionskostentheoretische Betrachtung ausschließlich auf den koordinativen Anteil des Organsationsproblems beziehen. Der motivatorische Aspekt wird zu großen Teilen durch die Prinzipal-Agententheoretische Betrachtung abgedeckt. Eine gemeinsame Betrachtung beider Aspekte würde zu einer unzureichenden Differenzierung der Betrachtungsansätze gemäß Aufgabenstellung führen. Die Relevanz der Transaktionskosten in der Bewältigung des Koordinationsproblems basiert auf der Annahme, dass das Management zur Wahrnehmung dieser Aufgabe selbst Ressourcen benötigt. Die Suche nach einem unternehmensweit optimalen Einsatz von Ressourcen ergibt somit eine transaktionstheoretische Optimierungsaufgabe. Bevor jedoch im nächsten Schritt die Verbindung von Transaktionskosten und der Form unternehmerischer Arrangements gezeigt werden soll, ist zunächst ein eindeutiges Verständnis der zugrundeliegenden Theorie zu entwickeln: Coase (1937) wirft die zunächst lange nicht beachtete Frage auf, welches institutionelle Arrangement am besten geeignet ist, um eine bestimmte Transaktion abzuwickeln. Implizit stellt er hiermit die These auf, das in Abhängigkeit von der Natur der Transaktion, unterschiedliche Arrangements optimal sind. [...]