song of the day

my favorite song of the 2008

mgmt-time to pretend

my diary

Hello from central London,
Today one of my friends went to Istanbul for a short holiday and it makes me so sad because even though I thought that I'm living here happily and lonely and also convinced myself that I don't need to go to Istanbul anytime soon,actually I realized I want to go home for maybe 5 days. Yes in fact 5 days in Istanbul help me relax and take all my depression away. I started to feel very stressed and also sad, I don't find anytime to do anything actually even if I do find time I don't really want to do anything, and my overall situation right now just seems a little bit miserable to me.

essay introduction

Globalization, the most abused word in the 21st century, defined by the economists, has meant so many different things to different people and evoked as emotion (Chanda, 2002). In business, it is important not only try to understand what its definition but also what is it that changed over the past few years by the name of globalisation. What are the main effects of globalisation into the global co operations, to customers,to the labour ,to production, to distribution and how technology improved by using global opportunities?
For example,in today's global economy some products having been made and sell almost everywhere whereas consumers are being able to reach almost anything even though those products are originally produced on the other side of the world. Additionally, as For the companies, mass production provides lower costs, competitive advantage, and. Being able to use the economies of scale.On the other, however, according to world ban briefing papers, liberalized financial or capital market flows whose high volatility can sometimes foster boom_and_bust cycles and financial crises with large economic costs.Even though some countries have to face drawbacks of the globalisation, yet most of them benefits from its advantages and try to be a part of those global markets in order to create new job opportunities, gain new global customers and raise their incomes.This essay will argue both sides of the debate and have a point to the main effects of the globalisation through the leading business function and then discuss how global markets affect other countries which they are either part of world wide unions or not.

introduction

Globalization, maybe the most abused word in the 21Th century, defined by the economists,has meant so many different things to different people and evoked as much emotion (Chanda,2002). To understand what it means and its effects to a business enterprise, globalization has to be examined by the terms of global firms, its competitive, commercial factors and its approaches to the technology. On one side ,some have argued that global corporations have become a holocaust and destroy local business' and also violating labour rights. On the other hand, however, it can be argued that the movements of capital and labour, integration between multinational corporations etc. ensures competitive advantages which they also could benefit from economies of scale and cost efficiency. this essay will argue that both sides of the debate and have a point to the main effects of the globalization through the leading business functions.

steve's introduction

Most economists would agree that due to the credit crunch, global markets are facing potential collapse (Stiglitz, 2008; Monbiot, 2007). As we know, our current recession began in the USA where banks got into the habit of granting mortgages to lenders unable to pay them back. This created a liquidity crisis in the country which banks and government were unable to resolve, and soon these economic difficulties spread to the rest of the world (BBC News, 2008).On one hand, some people argue
that even though today the economy does not seem very well, many people do their business and finances highly efficiently and effectively for the last 20 years with using the benefits of globalization. On the other hand, however, different thinkers have taken almost completely opposite views , pointed out the current issues and continue with, if it was not global markets there would not be the financial crises today. In this essay, I will argue that we have to radically assess the 20th Century philosophy of free trade and globalisation due to the failures we've experienced recently in global markets. I will begin by looking at how this philosophy was based on an erroneous logic and then go on to describe the ways in which it has set us back with regard to financial efficiency and growth. I will then go on to discuss the ways in which I think this current crisis will affect future research in my subject area International Banking and Finance.

Globalisation Lecture

Failure of Globalisation
(this is what i understand)

Credit crunch, first time after Great Depression.
Banks are lending money 5times more than people's income.
Since the house prices are decreased, people have to sell their houses to the lower prices than they used to. For example if someone ( Jack ) loaned £150.000 last year to buy a house and could not effort to pay anymore, bank force him to sell his house. The problem is because there is a financial crises going on, no one wants to pay £150.000 pound anymore so the value of the houses are started to lessening. For this reason, Jack has to sell his house to £100.000 (way cheaper than he bought) and still owe £50.000 to the bank. When jack told to the bank that he can't pay his debt anymore , bank people has to talk to the other people ,whom they bought jack's loans from the bank (CDOs), that they cant pay their debts because Jack can't give them the money. And then those people who bought the loan from the Bank, has to talk to the people whom again bought that loan of jacks and so on.

If jack couldn't pay his debt the chain of buying and selling loans delay and that will create a big problem because of this global trading system.

*these are my lecture notes

sub-prime mortgages => credit/$ <= Bank => CDOs/$ <= asset-backed securities sold globally -Mortgages defaults increase -Flow of money stops -Banks concerns over asset-backed securities interbank lending stops *Global effect : usa (CDOs) => uk(CDOs) => europe (CDOs) => china(CDOs) =>india (CDOs)

financial markets are global effects are also becomes global

Joseph Stiglitz thought that globalisation is contegious. If something happens in one country it will be spread to entirely different country because of the global markets.


Liquidity crises => not enough money for us and also for businesses
and because of the liquidity crises everyone started to suffer. Businesses go to bankruptcy , they can't expand, people lose their jobs, living costs are getting higher etc.

Banks in turmoil
in UK, northern rock and in USA, bear stearns are collapsed
stock market roller coaster ( failing month by month)

Philosophy of globalisation
- Liberalization : Whatever you do is OK as long as you're making money

Liberalization: trade, finance, production
- All the laws specified for globalization, trade agreements etc. everything is free up the movement of goods and services
- They removed the rules and regulations but it had side effects of course like air pollution , cheap labour.

Free trade becomes rid of restrictions and brings no obligations
not for everyone though, somebody had to pay
only big multinational companies like Coca Cola , Gap , Zara can use the advantages