International Bank Entry Driven Home Host Country Factors Finance Essay - Free Essay Example

Sample details Pages: 3 Words: 956 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Many international banks were under funding stress due to financial crisis. Some funding strains led international banks to put greater emphasis on home office funding needs and on funding foreign credit extension in local markets. In recent year, financial services have become increasingly important. From many surveys done by (Gray Gray, 1981) (Dunning, 1977) etc it was found that many banking institutions are becoming international. In last few decades it has been seen that many foreign banks are entering markets, especially in developing countries, to provide a broad range of financial services locally. This has been driven by domestic deregulation, e.g., the removal of entry barriers, technological advances, increased financial integration and more generally heightened globalization.  [i] Now with increasing technological advances and good communications, banks are now increasingly able to provide many types of financial services across borders to non -financial firms foreign affiliates without needing to establish affiliates in foreign markets. It wont be wrong to say that banks follows their customers to provide them with financial services abroad, especially trade and project finance, and thereby increase their businesses and profitability. Bank profitability is mainly affected by domestic and foreign economic activity. In the period to early 1994, the declining interest rates, which made the possibility of higher rates of return in emerging markets attractive or the technological advances and innovations in financial instruments have made it easier to buy into emerging markets.  [ii] According to Cerutti, DellAriccia, Maria Soledad MartÃÆ'„ ±Ãƒâ€šÃ‚ ´nez PerÃÆ'„ ±Ãƒâ€šÃ‚ ´a, Among the host country factors, they consider important factors like legal restrictions, entry requirements, and corporate taxes on foreign bank operations. In addition, they also examined about what responsibilitie s of parent banks have vis-à  -vis the liabilities of their branches and subsidiaries, by looking at the impact of measures of host country economic and political risks. Moreover the national governance or legal environment is also somewhat responsible for the banks profitability. As described in Anon., (2005), a foreign bank can enter a given market in one of the following four organizational forms: representative offices, agencies, branches and subsidiaries.  [iii] According to the survey on global industry profit conducted by The McKinsey Company in 2006 (see Figure 1), Dietz et al. (2008) indicates that the revenues and profits in the banking industry amounted to 788 billion that is the highest in comparison to other industry. As Figureshown, it is noted that from 2000 to 2006 developing countries grew significantly faster profits than those in the world. This can be easily proved from question no.1; the above table shows that developing countries were making more profi t than developed countries this proves that banking sector was growing vigorously. This also indicates that the banks were taking interest in setting up there branches in developing countries.  [iv] Claessens and Horen developed a measure of competitive advantage for each source-host country pair based on assessments of countries institutional environments. They used difference-in-difference model to explain bilateral banking FDI and controlling for other factors, after that they found that in driving foreign banks location decision especially for mergers and acquisitions institutional competitive was one of the important and advantageous factor. Basically the important factors which attracts the bank to go international are The ownership advantages which not only involves asset advantage but transaction advantage of a bank The locational advantages of a market which involves the attractiveness of the host country market seeking and host country competition. The fi rms internalisation advantages i.e. the benefits which are generated due to the reduction of the transaction cost. the host country regulation (regulatory barriers, government attitude and politics, information cost and institutions) Liquidity Management: The management of cash flows across an institutions balance sheet (and possibly across counterparties and locations) can be known as liquidity management. It involves the control of maturity/currency mismatches and the management of liquid asset holdings. Funding: The sourcing of liabilities can also be known as funding. The funding strategy is used to know how a bank intends to remain fully funded at minimum cost consistent with its risk appetite. Such a strategy is not used for balance cost efficiency and stability but is also used to target a broader funding which provides more stability reliable funding. Internal determinants: Internal determinants are factors that are mainly changed by a banks management dec ision and policy destination. Such profitability determinants are related to the level of liquidity, provisioning policy, bank size, capital adequacy and expenses management. External determinants: On the other hand, the external determinants, both industry-related and macroeconomic, are factors reflecting the legal environment and economic where the financial institutions operate. The micro economic factors relative to the target bank in the host country (efficiency and profitability). BLOMSTERMO, A., SHAMA, D. D. SALLIS, J., (2006) provide the definitions on the high and the low control entry modes. They specify that for high control entry modes (e.g. wholly owned subsidiary, majority owned subsidiary, etc.) there is a need of more resource commitment in the host country, and the company investing abroad are insecure. The low control modes (e.g. licensing, different types of contractual relationships, etc.) employ a reduced volume of resources, thereby reducing the risk the investing company is facing. On one hand, the high control entry mode provide high integration and control, while on the other hand, the low control entry mode, give low control and intergration (i.e. cooperative agreements), reduced risk. Foreign-owned banks located in developing countries tend to be more profitable as predicted by skilled management, but less profitable compared with domestic banks. Even though GDP at host country have significantly negative effect on NIM (net interest margin), foreign banks show extremely profitable in comparison to domestic ones. In addition, host country with higher inflation level would largely increase bank NIM (net interest margin).  [v] Don’t waste time! 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Legalizing Prostitution The Pornography Industry Essay

Legalizing prostitution will expand the pornography industry. First of all, prostitution and pornography has the relationship in the sex industry activity. This relationship will share the same three factors: a seller (pimp/producer/manager), a person being sold (prostitute/porn actress/stripper) and a buyer (john/porn viewer/club patron). So what kind of relationship between pornography and prostitution? Has it to be the cause and effect relationship? It s impossible to say definitively that watching pornography causes prostitution use, but it s definitely watching pornography is a part of a cluster of variables that are promoted and connected with men s assumption that they are entitled to use women sexually whenever they want. One of research studied 110 men who bought sex in Scotland and found that they were more likely buying sex higher than after they have viewed pornography. Also, Melissa Farley, a researcher and clinical psychologist at Prostitution Research Education, a non profit California-based organization dedicated to research and education surrounding trafficking and prostitution, confirmed that: â€Å"Pornography teaches men how to be johns. It is cultural propaganda, which drives home the notion that women are prostitutes. In sum, pornography is pictures of prostitution.† So that, watching porn is one of main factors that affect johns’ determine to due with prostitute. When prostitution expand after we legalize it, then learning about the sexual skills ofShow MoreRelatedLegalizing Prostitution Essay1748 Words   |  7 PagesProstitution has been a part of our worlds culture since the beginning of time, and is the worlds oldest profession. 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According to Ronald Weitzer, â€Å"The sex industry refers to the workers, managers, owners, agencies, clubs, trade associations, and marketing involved in sexual commerce, both legal and illegal varieties† (1). There are many questions that arise when discussing the sex industry. Should prostitution be legalized? If it were to be legalized, would anything change? Is prostitution morally

Wealth and Greed in Society free essay sample

An argument that the desire for personal wealth can contribute to the destruction of our culture. This paper presents the argument that the desire for wealth can distract us from the truly important things in life. The paper looks at those who promote values other than wealth and discusses the danger of material greed. The paper argues that the race for wealth promotes a dog eat dog attitude that can destroy friendships, families and business relationships. According to this paper, if we ever become a society in which the search for wealth becomes the most important thing to us, people would stop helping others, we would stop applauding effort and those who have other qualities such as compassion and kindness would be left in the dust. We live in America, which is known as the land of opportunity. We have seen poverty stricken people strike it rich and we have watched the wealthy lose it all. We will write a custom essay sample on Wealth and Greed in Society or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Each person and each family in this nation has the same opportunities to succeed. Material wealth seems to be the driving force behind our system of capitalism. Material wealth is something that we can measure in tangible yardsticks therefore we tend to value it. The true value of a society however cannot be found in striving for wealth. The search for wealth or the fear of not having it can lead to the destruction of the culture that we live in. We go to work each day and we come home and when we get paid we buy things. This is the American way. It is something that has attracted millions of immigrants to the United States and it is the dream many risk their lives to get here and share. But is it really about material gain? Is the wealth what is going to keep this culture going when all is said and done or is the drive to attain material wealth going to eat this culture like a cancer from the inside out. Wealth is not the root of all evil but the desire for wealth can distract us from the truly important things in life.

The problem of knowledge Essay Example For Students

The problem of knowledge Essay There is a physical sound present, but there is no sound experience. It is logical to think that things occur even if there is nobody to see/hear/taste them since changes can be observed (If you leave a burning paper and come later, it will be burnt) The tables in the classroom Do tables dance when nobody is around? It is improbable for such a thing to exist, therefore it is considered false, since it is impossible to prove. Theories of reality Common-sense realism the world is the way we perceive it (What you see it what is there) Scientific realism The world exists independently but is different from what we perceive it as (Atoms in the void) Phenomenalism We can only know what we perceive (to be is to be perceived Most theories suggest the existence of an independently existing reality (Things happen also without people). We will write a custom essay on The problem of knowledge specifically for you for only $16.38 $13.9/page Order now Reason Using reason we gain knowledge that is beyond the immediate evidence of our senses. Rationalism school of philosophy according to which reason is the most important source of knowledge even more than experience Premises The assumptions in logic, conclusions follow from them Fallacies invalid patterns of reasoning Deductive reasoning i Moving from the general to the particular. Syllogisms A kind of argument that includes: Two premises and a conclusion Three terms, each occurring twice Quantifiers (all, some, no) Truth = a property of statements Validity = a property of arguments An argument is valid if the conclusion follows logically from the premises and invalid when it doesnt. Trueness is independent on validity. The structure of arguments Validity of a syllogism doesnt depend on the words used but on the structure. It is possible to substitute the elements for anything else and the validity wont change. (A - B is the same as seeds-plants when speaking of validity). A fallacy called brief bias is based on concentrating not on the structure but the words themselves which may lead to false conclusions. Venn diagrams are a useful tool when deciding whether a syllogism is valid. However, Venn diagrams contain extra information which should NOT be considered as given in the first place. Deductive reasoning preserves truth if the premises are both true then the conclusion must be true. Enthymeme = an incomplete argument (e. g. Jenny goes to Oxford so she must be intelligent) All deductive reasoning is based on inductive reasoning experience Inductive reasoning i Moving from the particular to the general Is based on experience and observation which allows to draw conclusions Deduction and induction compared Deduction Reasoning from general to particular All metals expand when heated A is a metal -A expands when heated More certain, less information than Induction How reliable is inductive reasoning? Sometimes we make hasty generalizations. Sometimes, even well supported inductions are proved wrong. Confirmation bias people only see things supporting their theories and ignore exceptions. Good generalizations 1) Number need to look at a large number of examples to be able to make a generalization 2) Variety variety of circumstances different types 3) Exceptions actively look at counter-examples 4) Coherence more evidence for unlikely things 5) Subject area some areas are more certain than others (mathsbiology) Informal Reasoning The ten deadly fallacies: Ad ignorantiam Hasty generalization Post hoc ergo propter hoc Ad hominem Circular reasoning Special pleading Equivocation False analogy Claiming something is true because it cannot be proved false Generalizing from insufficient evidence Confusing a correlation with a causal connection Attacking/supporting the person rather than the argument. .u03b68e5b510e46073a2dfdef39ea1386 , .u03b68e5b510e46073a2dfdef39ea1386 .postImageUrl , .u03b68e5b510e46073a2dfdef39ea1386 .centered-text-area { min-height: 80px; position: relative; } .u03b68e5b510e46073a2dfdef39ea1386 , .u03b68e5b510e46073a2dfdef39ea1386:hover , .u03b68e5b510e46073a2dfdef39ea1386:visited , .u03b68e5b510e46073a2dfdef39ea1386:active { border:0!important; } .u03b68e5b510e46073a2dfdef39ea1386 .clearfix:after { content: ""; display: table; clear: both; } .u03b68e5b510e46073a2dfdef39ea1386 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u03b68e5b510e46073a2dfdef39ea1386:active , .u03b68e5b510e46073a2dfdef39ea1386:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u03b68e5b510e46073a2dfdef39ea1386 .centered-text-area { width: 100%; position: relative ; } .u03b68e5b510e46073a2dfdef39ea1386 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u03b68e5b510e46073a2dfdef39ea1386 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u03b68e5b510e46073a2dfdef39ea1386 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u03b68e5b510e46073a2dfdef39ea1386:hover .ctaButton { background-color: #34495E!important; } .u03b68e5b510e46073a2dfdef39ea1386 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u03b68e5b510e46073a2dfdef39ea1386 .u03b68e5b510e46073a2dfdef39ea1386-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u03b68e5b510e46073a2dfdef39ea1386:after { content: ""; display: block; clear: both; } READ: Snow Goose Overpopulation EssayAssuming the truth of what you are supposed to be proving Using double standards to excuse an individual or a group Using language ambiguously Assuming that because two things are alike in some aspects, they are alike in others Assuming that only two black and white alternatives exist A question that is biased because it contains a built in assumption Post hoc ergo propter hoc The fact that two things follow after each other doesnt necessarily mean that one is the cause of the other. (e. g. Day is not the cause of night) Ad hominem fallacy (against the man) Not arguing attacking/supporting the person. (e. g. What do YOU know about it? Youre just a child! / Obama says it so it must be right) Circular reasoning (vicious circle / begging the question) Arguing with the thing that needs to be proven. (e. g. God must exist because dictated wrote the bible) Special pleading Exceptions for certain people (e. g. politician immunity) Equivocation Word used in two different ways in an argument (A hamburger is better than nothing and nothing is better than good health = hamburger is better than good health) Argument ad ignorantiam Saying something is true on the basis thet it cannot be proved wrong. God exists. Do you have any proof that he does? Do you have any proof that he does not? So he must. False analogy Using analogies that are not logically correct only a rhetorical device (e. g. comparing rain to human problems) False dilemma Only putting something as black and white suggesting binary thinking when there are other options as well (e. g. You either climb that tree or you will NEVER conquer your fear! ) Loaded questions Questions that contain suggestions and cannot be answered in a yes/no manner while not telling anything. (e. g. Do you always cheat on your exams? ) Causes of bad reasoning The main reasons are ignorance, laziness, pride and prejudice. We misuse rhetorical skills in order to persuade people sometimes we even argue about things which we know are wrong rather than coming to the correct conclusion. Reason and certainty Laws of thought: The law of identity If A then A. The law of non-contradiction If A is A then it is not non-A The law of the excluded middle Everything is either A or non-A. Nothing is both. Can deductive reasoning be doubted? Reason is a matter of faith Some things are unsure and unable to be categorized properly (day/night) Everything is constantly changing? Can inductive reasoning be doubted? Induction is hard to apply for all rather than all observed Prison of consistency When you take a position on something, it is difficult to change it without losing face or to look at it from a different perspective. (It is hard to find errors in my own test) .