Question

Describe three types of trading. How are they different? what is the difference between Asset Management and Wealth Management? what is the purpose of Research in international business? why are credit ratings important in International business?

Answer 1

Answer:-

Three types of trading are:-

• Momentum Trading: Momentum traders seek stocks that are moving significantly in one direction in high volume. These traders attempt to ride the momentum to the desired profit.
• Technical Trading: Technical traders focus on charts and graphs. They analyze lines on stock or index graphs for signs of convergence or divergence that might indicate buy or sell signals.
• Fundamental Trading: Fundamentalists trade companies based on fundamental analysis, which examines corporate events, particularly actual or anticipated earnings reports, stock splits, reorganizations, or acquisitions.

Difference between Asset Management and Wealth Management is:-

• Wealth managers typically focus on the preservation of a client's finance, while asset managers aim to produce tangible returns on investments. ... Whereas, wealth management takes on a comprehensive view of a client's entire financial situation – specialising in giving advice for future planning.

The purpose of Research in international business is:-

• IB scholars examine how and why national business contexts matter and how individuals and corporations manage such contextual variations. With an acute awareness of local context, IB scholars integrate context and general theories to generate new theoretical and practical insights. In pursuit of this agenda, they actively engage with specialists of both specific business contexts and of functional business disciplines. Globalization accelerates business interfaces across countries, while only marginally reducing differences in national contexts. Therefore, IB scholarship becomes more important than ever. As IB scholars, we should pursue our research agenda more confidently in view of this broader agenda, and thus shape not only scholarly debates but both management practice and government policy.

The credit ratings important in International business because :-

• Many countries sell their securities in the international market, and a good credit rating can help them access high-value investors. A favorable rating may also attract other forms of investments like foreign direct investments to a country.