finance and banking

 

Answer question 1,2,4,6

  1. 1.    What events resulted in banks’ shift from the traditional banking model of “originate and hold” to a model of “originate and distribute?” (250 words)
  2. 2.    Despite the underlying advantages of the Theory of Comparative Advantage, countries do not appear to specialize in producing only those goods and services that could most efficiently be produced domestically. Provide at least three reasons why governments interfere with comparative advantage and the techniques they may use to enforce their objectives. (100 words)

 

  1. 3.     

 

a)     List and explain three strategic motives why firms become multinationals and give an example of each.                                                                                                                            

strategic motives for firms to become multinationals: market seekers, raw materials seekers, production efficiency seekers, knowledge seekers, and political safety seekers. Market seekers are looking for more consumers for their products such as automobiles or steel. Knowledge seekers may be looking for an educated workforce similar to the way firms seeking R and D set up shop in university towns. Raw materials seekers may be after commodities such as oil or copper. Production efficiencies may occur in countries like Mexico that have capable workers and lower wages. Political safety seekers are looking for countries that will not expropriate their assets, so they may stay away from countries that in the post have engaged in such activities.     ( this part of the question has been answered, You have to answer the second part)

b)    In your opinion, which of the five motives are more appropriate in the case of UAE/GCC firms to become multinational? (100 words)

 

 

 

5.

a)     What are the primary principles behind corporate governance reform today? Are these culturally specific in your opinion? Within the United States and United Kingdom, the main corporate governance problem is the one treated by agency theory: with widespread share ownership, how can a firm align management’s interest with that of the shareholders? Since individual shareholders do not have the resources or the power to monitor management, the U. S. and U. K. markets rely on regulators to assist in the agency theory monitoring task.

      Outside the United States and United Kingdom, large controlling shareholders are in the majority (including Canada). They are able to monitor management in some ways better than regulators. However, controlling shareholders pose a different agency problem. How can minority shareholders be protected against the controlling shareholders?

             In recent years reform in the United States and Canada has been largely regulatory. Reform elsewhere has been largely an adoption of principles rather than stricter legal regulations. The principles approach is softer, less costly, and less likely to conflict with other existing regulations. ( this part of the question has been answered, You have to answer the second part)

 

b)    What are the recent corporate governance studies and updates in the case of publicly listed UAE/GCC firms (You will find such information from “Hawkamah”, the Institute of Corporate Governance in UAE  – www.hawkamah.org ) (Annual Conference of 2011, 2010, and 2009) (100 words)

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