How can we make globalization something that brings prosperity to Essay - 1

How can we make globalization something that brings prosperity to everyone - Essay Example Wal-Mart had a net income of 12,731,000,000 on total revenue of $378,799,000,000 in accordance with documents filed by SEC in 2008. By opening trade with other countries, the ability to dictate what is being produced and how, and giving consumers more power, globalization thus helps to flood the market. In a situation where consumers collectively buys only environmentally friendly products, then companies would be forced to a transition to meet our demands thus making a world a cleaner place. Thus, globalization contributes to a sustainable property for all. This helps the people get above the poverty line by increasing competition that in turn helps to bring down the prices of commodities or, services. The competition for goods and services is affected by globalization e.g. the price of goods and services is brought down by increasing their supply. Thus, globalization will help benefit the world. According to the video, De Soto thinks globalization is limited in its current form. Ma jority have been left out in terms of the legal structures that give rise to it. Globalization must actually include the majority of the people on earth to be truly worth its name. it links elites from the post-soviet world and the developing world to the world economy. The legal revolution that has been taking place especially in the west is because of the market economic system. De Soto argues that if these market institutions are brought down, it could take another few centuries to develop. Hernando De Soto is one person that believes in the power of trade. His hard work helped to get the US-Peru Free Trade Agreement passed. He also always speaks out in favor of giving the poor access to wider markets. Elites can only be globalizing with the current existing globalization. Elites can only gain access in developing countries, because the costs of entry are high. Increased trade and open markets are key to eliminating poverty. Once the poor enter the legal system and have access th ey need, they will definitely prosper as per the evidence gathered by the institute of liberty and democracy (ILD). There are many overall benefits of trade. According to law of comparative advantage, the less productive countries will benefit from trade with countries that are more productive. This is because producers who are stronger can trade in order to free up resources thus enabling them to specialize. The lower prices that an economy of scale and specialization engenders are some of the things that the customers will benefit from. The video clearly illustrates that globalization process had already taken place in the late 19th century. The foreign investment and trade were fairly globalised before world war1. Labor markets were more globalised at the beginning of the twentieth century than at its end simply because of low political obstacles to international migration. The great depression and two world wars halted the process of global market integration for almost half a c entury. The process later regains speed and force. Due to faster, reliable and inexpensive transport and communication, some service providers and producers of goods in low-wage countries have been able to challenge high-cost producers in rich countries on

Understanding the concepts Essay Example | Topics and Well Written Essays - 500 words - 1

Understanding the concepts - Essay Example And, thus, it ultimately assists the management to arrive at a decision. 2. According to Whittington and Delaney (2010), the primary benefit of the debt financing is that it allows the firm owners to retain full power and control over their business dealings (p.220). Debt financing does not involve complex reporting processes and, therefore, it is easy to administer. In contrast, this concept would not be beneficial for small businesses as they may find difficulty in obtaining access to potential financial sources. In addition, it would be an uneasy task for small firms to make regular monthly interest payments. Generally, organizations tend to issue stocks rather than bonds to generate funds because bonds are just debt securities while the stock is a capital asset. More precisely, bond issue would further contribute to the firm’s liability as compared to stock issue. 3. According to Harle, Luders, Pepanides, Pfetsch, Poppensieker, & Stegemann (2010), safer investments or investments having the least uncertainty may generate lower average returns, whereas investments having more uncertainty or risky investments would bring higher average returns. Hence, the level of risk a firm takes can have a great influence on its volume of revenues. Thus, financial returns are related to risk. 4. â€Å"Beta† is the blended, overall return of a particular asset type, which may be divided further by market, sector or some other organization, such as size† (Fraser-Sampson, 2011, p.164). In other words, it is the tool used for measuring and comparing the volatility of a security or portfolio against the market as a whole. â€Å"Beta† is computed by using regressions analysis. The â€Å"beta† higher than 1 indicates that the security’s price will be more volatile, while the â€Å"beta† less than 1 indicates a less volatile price compared to the market as a