read chapter 6, finance and investment and answer the questions bellow. i attached the book. please answer the questions only based on the book you read. each question worth 25 point and the answer...

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read chapter 6, finance and investment and answer the questions bellow. i attached the book. please answer the questions only based on the book you read. each question worth 25 point and the answer has to be 100% correct.


1.Explain the difference
between investment and finance. What role does each playin the
globalization dynamic?




2.What is the difference
between short-term capital and long-term capital? Why docountries not
rely on long-term capital alone so as to secure a safe path to
economicdevelopment?




3.How many types of risks
are associated with globalization? Explain how these riskstend to be
interrelated and it is impossible to control one without impacting onthe
others.




4.Explain how globalization
has created new challenges for conventional banking andhow commercial
banks have tried to meet them.




5.Compare the benefits and
costs of financial globalization. Is there any reason tobelieve that the
benefits should outweigh the costs in the long run? Why or why not?




6.What is the meaning of
secular stagnation? How is it relevant in today’s world?




7.While portfolio
diversification may eliminate a certain type of risk it may not beso
effective in diffusing all other risks so well. Do you agree? Why or why not?




8.From what we have seen in
this chapter is it reasonable to conclude that only thosecountries with
developed capital markets stand to gain the most from globalization?Why
or why not?




9.Globalization seems to
have allowed a proliferation of speculative financial assets.Do you
agree? Explain.










































10.What are some of the
challenges faced by the global economy today? Which of these might be most
critical? Explain









Answered Same DayOct 01, 2022

Answer To: read chapter 6, finance and investment and answer the questions bellow. i attached the book. please...

Komalavalli answered on Oct 02 2022
57 Votes
Q1
Finance and investing are two distinct things. Finance, in general, refers to raising capital to establish and maintain a business, but it also frequently refers to
a convoluted connection between business owners. Investment, on the other hand, entails the real expansion of the size and breadth of business interests. This includes purchasing and selling corporate assets, as well as manufacturing and debt collection.
Q2)
Long-term capital is defined as a fixed asset owned by the appraiser for more than 36 months before to the transfer date. Short-term capital is defined as an asset held for less than or exactly 36 or 12 months. Higher consumer spending, increased foreign commerce, and increased corporate capital expenditure can all have an impact on the volume of products and services produced in the economy. Builders and constructors, for example, will see their revenue rise as consumers purchase more houses.
Q3) The drop in costs of necessary everyday necessities is a huge benefit for us, but because salaries are also a price, it can also imply lower earnings and fewer work opportunities for some individuals. This results in a mixed image of globalisation, which will be addressed in subsequent chapters. For the time being, it should be recognised that not all sectors of the economy are completely immune to the risk and uncertainty engendered by globalisation.
Q4)
Following the 2008 financial crisis, major central banks across the world embarked in a multi-year push to maintain interest rates low while participating in quantitative easing (i.e. pumping money into the system). Credit line freezes and loan facilitation are all for relief reasons, but they...
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