“International Finance” Please respond to the following:
Based on the lecture and Webtext materials, address the following:
The IMF and World Bank are the world’s two leading lending institutions, but much of their monetary assistance disappears once it enters the banking systems of developing countries. Cite concrete evidence that supports the assertion that much assistance to developing countries is simply stolen by officials. Determine other main factors that account for the misuse of these funds.
“War and Peace” Please respond to the following:
Discuss substantive ways in which armed conflict can contribute to or distract a developing economy and infrastructure. Analyze specific reasons why developed nations do not experience the same kinds of social upheaval. Note: Consider discussing a country you will use for Assignment 1 next week.
Please note that this journal assignment is based on a pretend scenario and fictitious money. However, the assignment is based on actual stock pricing in real time situations. Do not invest your personal money for this assignment.
The capital markets and the ability to raise funds for corporate uses are essential to the US economic systems. For this assignment, imagine that you have $25,000 to invest in US companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner.
You are investing, or buying the stock, because you believe the company will make money and pay you a dividend in cash. Each share of stock that you buy entitles you to any dividend declared and a vote at the annual stockholders’ meeting.
The stock also allows you the ability to earn your money back by selling the stock. Of course, investing in stocks is risky and there is the possibility that the stock you buy will be worth less when you want your money back. The company is not obligated to give you any of your money back. You will only get your money back if another investor wants to buy your stock.
For your first journal entry complete the following:
When you look up a stock price, the price listed is the price as of that exact moment. There is an opening price, highs and lows during the day, and a closing price. Use the “opening price for the day” when you make your pretend investment. Using the example above, you are investing $9,991.92, 237 shares, and $42.16 per share.
Your next journal assignment will be to report the new value of your shares during Week 8 of the course.