Credit Crunch and Commodities Market Essay Example | Topics and Well Written Essays - 6500 words

Credit Crunch and Commodities Market - Essay Example This issue is affecting world trade in that it is currently making it difficult for banks to provide loans to businesses given the significant losses encountered so far as following prior sub-prime mortgage lending. Following from the integration of capital markets, the credit crunch will lead to a fall in stock markets in the US and this may be transmitted through contagion to other major stock markets of the world such as the U.K, China, Japan, EU, etc. International organizations may witness a drop in their stock prices. In addition, the credit crunch may lead to greater fluctuations in exchange rates and interest rates and this will mean that international organizations need to rethink their risk management policies. This led to a tightening of credit because banks faced a liquidity problem arising out of the high rate of defaults on mortgages. The stocks of banks and financial institutions began to slide and the Dow Jones experienced a significant fall in points as several large financial institutions in the United States hovered on the brink of bankruptcy. Some financial institutions received help from the Government while others like Shearson Lehman filed for bankruptcy. The crisis in the financial institutions and the tightening credit also had repercussions on the rest of the economy, resulting in a drop in consumer confidence and purchasing with the economy sliding into a recession. 1.1Problem Statement and Research Questions Following the present global financial crisis that has created havocs into the global financial system and the world economy. The paper expects to provide answers to the following questions: How have the crises affect commodity prices in the... As the report declares the stocks of banks and financial institutions began to slide and the Dow Jones experienced a significant fall in points as several large financial institutions in the United States hovered on the brink of bankruptcy. Some financial institutions received help from the Government while others like Shearson Lehman filed for bankruptcy. The crisis in the financial institutions and the tightening credit also had repercussions on the rest of the economy, resulting in a drop in consumer confidence and purchasing with the economy sliding into a recession. This study will examine the current financial crisis caused by the decline in the availability of credit and the impact of the credit crunch on the commodities market. The major source of data for this study will be the literature review, taking into account the views of experts on the causes of the credit crunch and the consequences that arise in the commodities market as a result of the credit crunch. In addition to this secondary data, the primary data used in this study is the price indices of different commodities as reported by the IMF over the years, in order to examine the changes that are discernable in the commodities market due to the credit crunch. Attention will also be on the activities of some major banks. The rest of the paper is organised as follows: part two presents a theoretical framework where major terms and theories relating to the study are discussed, it also provides a review of relevant literature which enables the researcher to identify gaps in the literatu re.

Reading respond Essay Example | Topics and Well Written Essays - 1000 words

Reading respond - Essay Example Question 2 A business organization brings together people from diverse backgrounds and with abilities that are uniquely different. Among other organizational management skills required for an efficient management organization is the need for an effective communication system. Such a system should recognize the different abilities shown by the staff. The imminent increase in diversity at places of work have had imminent influences on organizational set ups. This has been so irrespective in terms of communication and human behavioral adaptations. The aspect of communication also entails the aspect of giving what would be defined as nonverbal communication. In this sense, it is important to acknowledge that diversity at places of work have led to obvious issues which need to be addressed if the organization setup is to remain as conventional as would be suitable for everyone involved within the organization. A) Effect on communication The imminent issues that would arise from such event ualities affect communication. These are a myriad. However, the most evident would be based on the cultural differences that people inherently have. For instance, some people are from tolerant background while it is naturally anticipated that other people would harbor intolerable traits. In handling the diversities at the places of work, it is important to a strike a balance in making everyone be comfortable with one another irrespective of the cultural or even social background. Language is a tool of communication. In every communication, it forms an important aspect since it facilitates conveyance of message. Common issues that arise in workplaces with diverse personalities are language problems. This might come from persons having intolerable speech impediments or even plain miscommunications due to language issues. People need to be enlightened on the issues that exist in the workplace. Through that, prejudices and misconceptions would be overcome. Consequently, such moves would aid communication in immeasurable ways. B) Nonverbal communication entails using means or platforms which are not audible. These involve using platforms of communication which might be including signs, gestures, or even written notes. In an organization with a diverse background, there are bound to be issues in communication using the nonverbal platform. In such circumstances, communication might be hindered by such issues as levels of technological sophistication. This comes from the fact that there are those persons within the diverse workforce who might have least exposure to technology compared to others. For instance, the older generation would find it hard to communicate with the younger workmates through social media and other similar platforms. Consequently, it is important to bridge the gap between the two groups to aid effective coexistence and effective communication (Gibson 148). Other forms of communication such as gestures might be influenced by cultural backgrounds. This insinuates that people of different cultural backgrounds at a diverse place of work might have unique interpretations to different gestures. For instance, a facial gesture from one employee might insinuate a different meaning altogether to another employee. In such circumstances, such communication might be hampered. Besides, gender and religion also play an important role in gestures as forms of communication amongst the employees of diverse origin. For instance, a gesture to female employee