Questions Assignment Example | Topics and Well Written Essays - 1000 words

Questions - Assignment Example Flow of capital is determined by real interest rates. When domestic real interest rates rise, the domestic assets become more attractive to foreign investors. These investors buy this country’s assets assets resulting in capital inflow. Higher interest rates also induces domestic investors to buy home assets instead of foreign ones. This significantly reduces the amount of capital outflow. This leads to a decline in the net capital outflow. A decrease in the domestic real interest rate will substantially reduce investors returns from their investments. This will discourage foreign investors from investing locally hence reducing capital inflow. Domestic investors will shift their investments to countries with rising real interest rates thus increasing capital outflow. This will ultimately lead to increased net capital outflow. Relationship among saving, investment, and net capital outflow. According to Lukes (1959), disposable income is used for consumption and investment. The amount of money saved is the one used for investments and therefore investment is equal to savings. The total amount of a country’s savings is used for domestic investment and purchase of capital goods abroad. As explained above, net capital outflow is the net flow of funds being invested in other countries by a country during a certain period of time. ... In economics, the term investment refers to purchase of new capital and other factors of production often through the use of loans. As shown in the graph below, the demand curve in the loanable market is downward sloping from left to right while the supply curve in the same market is downward sloping from right to left. According to John ( 1936), when the real interest rate increases, the cost of taking loans increases. This leads to low investment as investors shy away from acquiring loans to fund investments due to the increased costs. On the other hand, when the real interest rates are low, the cost of taking loans reduces hence loans becomes more attractive to investors. This translates to increased investments. When the real interest rate rises, people save more in order to take advantage of the increased returns on their savings. Therefore, there will be increased money saved in the economy. On the other hand, when the real interest rate decreases, people will be discouraged fr om saving by the low returns they get due to lower real interest rates, leading to low savings. The foreign exchange market is a market for trading of currency. In this market, one party exchanges one country’s currency with an equivalent quantity of another currency. The exchange rate is the price of one currency in terms of another currency. The major role of foreign exchange market is to facilitate the loanable funds market. Foreign goods are usually priced in foreign currency and therefore an investor will need foreign currency to buy foreign assets. The rate at which a currency is exchanged for another is determined by the demand and supply of that currency. The higher the demand for financial assets in a

Project Management Plan Research Paper Example | Topics and Well Written Essays - 1500 words

Project Management Plan - Research Paper Example Like in our case study, we are studying the Cycle City. Cycle City is involved in offering transport services. However, the company would wish to extend their services to cope with the changing customer needs. This calls for the design part of a new super cycle way project. The aim of the project is to create a connection between the proposed high-speed rail station at Toton and Nottingham City Centre. This been a project of construction, there will be requirement of management procedures that will see the project a success. The expansion project of the Cycle City Company would require materials and several resources that would be acquired from various suppliers. Apart from monitoring the project, the management’s major role will be to ensure effective and efficient procurement process. Procurement is the process of obtaining goods and services from another for some consideration. In procurement of construction materials, the procurement sector should take keen consideration of the kind of project been undertaken. The purpose and main goals of the project should remain in the mind of the person doing the procurement. In our case study, this is a transport service. Various transport considerations that are in the customers minds need to be taken in place. Comfort, convenience, cost, safety and efficiency of the services provided to the customers by the new project should be the key factors to consider in the procurement process. Various procurement routes may be employed by the company in acquisition of the necessary resources for the project. However, the selected procurement route need to be effective and meet all the aspects and objectives of the project. Procurement options can be grouped into five main categories that shares common attributes. They include traditional, design and build management, contracting, construction Management and