Question

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Provide 200 words in a response to this posting:

How important is profit to a company to grow internationally and how does it affect poverty?

When it comes to growing a company internationally, profit is the second most important thing. Although a company does have to show signs of profit to gain shareholders, developing a product or service that has the power to change the lives of others is most important. Without this product or service that can change people’s lives the business will not see any profit. Growing profit internationally can decrease poverty within underdeveloped countries. According to the World Trade Organization and World Bank Group, “Trade has played a critical role in poverty reduction...the further integration of developing countries into an open global economy will be essential for achieving the goal of ending extreme poverty by 2030” (Levy, 2019). I agree with this statement because the more you integrate businesses within the underdeveloped countries you bring more jobs and better economic status.

Provide 200 words in response to this posting:

What is the impact of global finance on the global world?

- I would have to say that one of the impacts of global finance on the global world would have to be Internationalization of financial markets. Domestic financial markets are part of a global financial system intermediating borrowing and lending between the local nation and the rest of the world necessitated by expanding international trade and production, and the development of multinational corporations. This has led to some economic growth of countries, increased standard of living, better employment opportunities, industrialization, and also an increase in investment opportunities to say the least. At the same time it has resulted in increased financial inequality between countries, continious banking frauds, and also increased risk of global financial crisis. With a full thought out timeline, the international financial system of the future will be in a stronger position, connecting financial services providers, corporate America public institutions and households with access to a range of quality, great services and more.

Answer 1

Profit is absolutely important to company as it helps unlock shareholders value, drive higher market capitalization, ensure dividend to shareholders, improves free operating cash flows for capital expenditure and revenue expenditure, gives higher flexibility for firm for mergers and acquisition and ensures higher international expansion. Growing profits helps create employment opportunities and higher wages and thus reduces poverty and increase disposable incomes which thus reduces income inequality and raises real GDP.

Global finance has helped interdependence andninterlinkage of financial institutions, helped drive sustainability and lender of last resorts, ensured higher cooperation and global integration, given financial flexibility and operational optimization, gives better customer preferences, larger opportunities for shareholders to invest. However it has downsides risks of over diversification and larger global risk due to uncertainty and political instability as well as geopolitical tension which can create unviability in long run and fallouts like Asian financial crisis and Global Financial crisis.

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