Question

In: Finance

In a fast changing and increasingly complex world, there is more that interests shareholders, CEOs, managers...

In a fast changing and increasingly complex world, there is more that interests shareholders, CEOs, managers and stock owners. Discuss the truth in this statement in view of business globalization.

Solutions

Expert Solution

Globalization refers to the changes in the world where we are moving away from self-contained countries and toward a more integrated world. Globalization of business is the change in a business from a company associated with a single country to one that operates in multiple countries.

In fact globalisation leads to the conversion of many markets and economies into one market and economy. The aim of
international standards and regulations is also to deregulate all these markets. The economy needs financial structures
capable of handling the higher level of risk in the new economy. For this reason financial markets must be broad, deep,
and liquid and at present only the U.S. financial markets are large enough to provide this financial structure in the world
market. Global stock market projection and Pan-European stock market projection are part of this changing. There are
many similar examples in the current situation for market integration which are also the result of increasing competition
in the economy. Integration examples are prominent in company mergers and acquisitions as well.


Related Solutions

How do corporate managers balance the interests of society and shareholders?
How do corporate managers balance the interests of society and shareholders?
In a rapidly changing world, nothing is changing as fast as retailing. Technology has almost made...
In a rapidly changing world, nothing is changing as fast as retailing. Technology has almost made stores obsolete. Retailers must understand the complete marketing framework and mix. The old adage "plan your work and work your plan" applies to the development of marketing plans, especially in the pursuit of company-wide understanding, excitement and collaboration. The marketer's most challenging problem is not being more creative than competitors; rather, the most challenging problem is to get over the internal hurdles within a...
Q- ‘The dynamic world of the technologies is fast changing the nature of the goods and...
Q- ‘The dynamic world of the technologies is fast changing the nature of the goods and the ways to produce them.’ In the context of the above statement, explain the impact of technology on the long run cost and the elasticity of supply in your business over a period of time. Support your answer with an appropriate diagram.
It has been said that today’s world is constantly changing; making even short term planning increasingly...
It has been said that today’s world is constantly changing; making even short term planning increasingly difficult. Why should an organization or country bother to plan in an increasingly unpredictable world? Please discuss and provide references
If shareholders are more risk averse than managers are, it is a good idea to give...
If shareholders are more risk averse than managers are, it is a good idea to give managers call options with high strike prices? Discuss.
We live in a fast-changing world. We often hear that innovation is what’s needed to address...
We live in a fast-changing world. We often hear that innovation is what’s needed to address the global challenges and local issues that we’re facing, to seize new and unexpected opportunities as they arise and to make our world a better place. Therefore, new invention derived from research developments, technical knowledge and tools independent of product and service initiatives. a. Compare disruptive and sustaining technologies. Support your answer with relevant examples. b. Explain how the Internet and WWW caused business...
Decision making is increasingly more complex today because of uncertainty. Additionally, most capita! projects will involve...
Decision making is increasingly more complex today because of uncertainty. Additionally, most capita! projects will involve numerous variables and possible outcomes. For example, estimating cash flows associated with a project involves working capital requirements, project risk, tax considerations, expected rates of inflation, and disposal values. We have to understand existing markets to forecast project revenues, assess competitive impacts on the project, and determine the fife cycle of the project. If our capital project involves production, we have to understand operating...
What are the management-entrenchment and the shareholders'-interests hypotheses? Which seems more realistic in your judgment? Explain...
What are the management-entrenchment and the shareholders'-interests hypotheses? Which seems more realistic in your judgment? Explain your answer.
In today’s complex business environment, organizations must deliver more than profits and value to their shareholders....
In today’s complex business environment, organizations must deliver more than profits and value to their shareholders. Another key focus is non-financial performance. Investing in human and financial resources to develop sustainability strategies is as important. How do companies report on their non-financial performance? Is it as important as the financial metrics?
An investigator wonders if slow-tempo music is more complex than fast-tempo music – since with slower...
An investigator wonders if slow-tempo music is more complex than fast-tempo music – since with slower music, the listener has more time to process the incoming musical information. To study this, he examines three samples of pop songs by the Beatles that differ in tempo: slow (group 1), moderate (group 2), and fast (group 3). 20 Beatles songs are sampled in each category (so, 60 songs total). As a measure of musical complexity, the investigator counts the number of different...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT