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Trading Fairly and Making a Profit
Trading Fairly and Making a Profit
Student’s Name
Institution
Equal Exchange: Trading Fairly and Making a Profit.
Beverage and products industry is a field of business in which many investors have ventured into across the world. Due to the congestion of industries in the field of production, there is a cut throat competition that every company faces. On the other hand, fair trade must be practiced to ensure that all the persons involved in trading get what they deserve. That would include farmers to manufacturers and consumers as well. The competitive pressures facing the fair trade food and beverage products industry are enormous and quite a number of them are discussed in this paper. Globally, most countries that are still developing have in the past had influenced systems of agricultural marketing via policy of macro-economic that entails overvaluation of exchange rates that are all-encompassing. In addition, such countries exercise subsidies allocation, tax collection, marketing services provision and regulation of administration. State involvement level in trade has always been emphasized in major commodities that are exported as this is often perceived to be the absolute source of revenue collection (Lyon & morgan, 2010). It also ensures that input supply and credit to small producers prevails as well as provision of stabilization of market prices. Some nations have dismantled cooperatives that were independent thus state monopoly systems arose as key marketing functions were disrupted.
A five force analyses vary in different industries since not all industries produce similar products. The competitive force that is strongest determines the amount of profit an organization would yield and thus it becomes the most vital force in the formulation of strategies. However, the most significant force is always not noticeable. As a result, Equal exchange in the market chain is not guaranteed due to competition arising from the upcoming industries. Bargaining power of suppliers can enable some industries purchase raw materials at low prices hence can trade their merchandises at affordable rates to consumers. Also, bargaining power of buyers can result in a company selling its products cheaply thereby making low or no profit at all. Entrance of a new industry into the market or production of substitute products of a company’s would result in low level of sales thus reduced profits. Rivalry among competitors that already exist is equally unhealthy to equal exchange as some companies would prefer doing business without making any profits so as to push their rivals from the market. On the other hand, industries are forced to raise their innovation standards. The weak force might be as a result of the location of the industry but specifically there is none that can be pinned down as being weak.
An importer of farm produce with developed interest in building trade partnerships that are long term and mutual relations with all dealers is what makes up Equal Exchange. Since investors worldwide have ventured into food production business, there exists a stiff competition offered by the rivals that put Equal Exchange on toss. Equal Exchange’s competitive resources and capabilities include tangible and intangible resources. Tangible resources entail resources of finance. Equal exchange developed to earn profit to cooperatives of workers has had outside and inside shareholders. The most preferred financing source has been shares of Class B to outside investors. Shares of Class A formed part of smaller capital flow of stock which were sold only to employees of Equal Exchange. Additionally, Equal Exchange and Eastern Bank partnered and provided Equal Exchange Deposit Certificate, which became alternative to conventional Deposit Certificates. There were also resources of the organization in which Equal Exchange formed 100% of cooperative owned by workers whereby the cooperatives made their decisions.
Intangible resources include reputation and image of the company as well as direct farmer’s association with the company. Equal Exchange gives information about the product’s origin and how money is spent. They also import products directly from the cooperatives of farmers. Equal Exchange has partnerships with organizations of fair trades that create awareness to the public on their brands (Fridell, 2007). Competitive important capability of Equal Exchange includes the provision of foods that are organic with communal commitments. The supply chain of Equal Exchange is shorter as compared to competitors that are conventional and the supply chain is effectively managed. Quality of products is controlled by contracts signed with farmers in which there are agreements to produce products of high quality at fair prices. Through the stated discussions, it is discovered that the competitive power that is greatest is provision of organic food and commitments to the community. Equal Exchange purchases directly from cooperative representing small-scale producers thus the cooperatives activities are internalized. Moreover, profits that were taken by middlemen end up in the pockets of the farmers.
There are no capabilities or resources that can pass all the four tests VRIN for merits that are competitively sustainable. This happens since a firm with all the four tests that include valuable, rare, costly to duplicate and non-replaceable resources can experience difficulty in identifying the particular resource that causes advantage that is competitive. There can also be complexities caused socially as some capabilities and resources are based on the culture of the company such as buying directly from the small scale farmers. It also becomes very expensive to duplicate resources that were developed by a company several years ago. The most considered power that is competitive is the ability to provide communal commitments and foods that are organic.
Recommendation
I would recommend to the board of directors to establish a system of policy-based governance for the company. The board as a group would define rules and how it will be implemented. The rules and regulations established by the board of directors should be based on policies that would help raise the standard of performance and increase productivity. As a matter of fact, such rules would aid in guiding the actions of the board of directors, managers and the rest of the employees. The rules should not be defined rigidly but should cover a wide range of perspectives as this would give the managers and employees a leeway to achieve the company’s objectives and goals.
The already established partnerships that the Equal Exchange has with the Eastern Bank should be continued to offer the certificates of deposits that are sources of finance to the company. Provisions of organic foods and management of supply chains also enhances smooth running of the business and thus the board of directors should ensure that the policy never dies. The purchase of products from small farmers’ cooperatives should always be encouraged by the board of directors to reduce the middlemen that reduce the profits the farmers. This would help encourage farmers work even harder.
References
Fridell, G. (2007). Fair trade coffee: The prospects and pitfalls of market-driven social justice. Toronto: University of Toronto Press.
Lyon, S., & Moberg, M. (2010). Fair trade and social justice: Global ethnographies. New York: New York University Press.
TRADING ECONOMIC IN TURKEY CRISIS 2001
TRADING ECONOMIC IN TURKEY CRISIS 2001
[Name of Student]
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Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc412847094” 1.0 Introduction PAGEREF _Toc412847094 h 3
HYPERLINK l “_Toc412847095” 2.0 The Keynesian Cross PAGEREF _Toc412847095 h 4
HYPERLINK l “_Toc412847096” 2.1 IS–LM model PAGEREF _Toc412847096 h 5
HYPERLINK l “_Toc412847097” 3.0 The multiplier effect PAGEREF _Toc412847097 h 7
HYPERLINK l “_Toc412847098” 4.0 Effects of the Turkish austerity program of 2001 on economic growth and unemployment. PAGEREF _Toc412847098 h 10
HYPERLINK l “_Toc412847099” 5.0 Conclusion PAGEREF _Toc412847099 h 15
HYPERLINK l “_Toc412847100” References PAGEREF _Toc412847100 h 17
HYPERLINK l “_Toc412847101” List of figure PAGEREF _Toc412847101 h 18
1.0 IntroductionThe Turkish economy has faced occasional economic crisis since the 1990s. Some of the major crisis occurred between 2001 and 1990. The main causes of this crisis were grounded on international macroeconomics and domestic instabilities. However, the main focus of this paper is the crisis that occurred in 2001. In the aftermath of the 2001 crisis, the Turkey government enforced the Transition to the Strong Economic Program. The tightened fiscal package in 2001 contained important emphasized expenditure reductions and revenue raising measures. The revenue measures included: an increase in the luxury VAT and the standard rates by a fraction of one percentage point, a rise in the tax on petroleum consumption by 20 per cent by April and 25 percent by May, and a rise in the least base for social security contributions at a rate of 40 per cent so as to cover the payments. On the expenditure side, the number of civil servants and their real wages were kept constant in 2001; negotiations on new contracts with public sector workers were targeted to be supportive of the disinflation objective; current expenditures, transfers, and investment were adjusted by less than the inflation rate; and defence spending was also scaled back. Savings were also projected in the State Economic Enterprises (SEEs) as well as by slower spending in extra-financial funds. In reference to the above important emphasized expenditure reductions and revenue raising measures, this paper analysis some of the short and medium impacts these measures have had on the Turkish economy, and provide lessons that other countries can learn from this experience.
2.0 The Keynesian CrossNational income is characterized as the ventures and reserve funds in a nation’s economy. Keynesian cross model demonstrates the equation for harmony national salary as; Y= C +I+ G+ (X-M). In this formula, Y is the national income, C is total consumption, I is total investment, G is government spending, X is fares and M are imports (Dées et al., 2010, p. 67). The total interest is an upward curve since it is expected purchasers request more when their disposable wage is high. There is a positive relationship between disposable wage and utilization and along these lines it is valid to contend that request will dependably increment with expansion in disposable salary. Total request additionally increments as venture builds yet is contrarily influenced on the off chance that it happens that imports and duties increment because of climb in investment since they adversely influence the venture level.
The balance level is at the point where AD, the aggregate interest, is equivalent to Y, the national yield. Right now, aggregate supply equivalents aggregate interest. The central point prompting a development towards the harmony focuses stock changes as a consequence of changes in salary and generation on the off chance that it happens that the current yield is more than the balance level; inventories will aggregate prompting a chop down underway and accordingly a descending move towards the balance (Dées et al., 2010, p. 70). Then again, with a generation level beneath the balance, there is shy of inventories and subsequently organizations will deliver all the more prompting an upward move towards the harmony.
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Diagram 1 – The calculation for The Keynesian Cross
On the off chance, that there is an ascent in any of the total interest segments, C, IP, G or NX, the interest curve moves upward. The ascents in these parts can be as a consequence of increments underway on account of expanded confidence about the benefit later on. This increment will prompt an increment in the harmony levels (Dées et al., 2010, p. 75). Correspondingly, with a decrease in any of the interest segments, the interest curves moves downwards and prompts a reduction in the balance levels.
Keynes effect undertakes that amount requested increments with decline in the cost and the other way around. With steady ostensible cash supply, diminishing value infers lower premium rates and hence higher spending. The significant accentuation in this model is “that a decrease in total interest can prompt a stable balance with generous unemployment”. Full occupation is contended to be touched base at when there are conformities in the total interest.
2.1 IS–LM modelIn order to calculate the relationship that exist between real output and the interest rate, the IS–LM model will be used. Below is a diagram showing the calculation of the IS–LM model.
INCLUDEPICTURE “http://upload.wikimedia.org/wikipedia/commons/thumb/b/b9/Islm.svg/270px-Islm.svg.png” * MERGEFORMATINET
Diagram 2 & 3 – The IS-LM model curves
The intersections of the curve between “investment–saving” (IS) and “liquidity preference–money supply” (LM) is the general equilibrium. In the intersection, there is simultaneous equilibrium for both markets. In the diagram above, the horizontal axis labeled as Y represent the real gross domestic product or the national income. The vertical axis labeled as I represent the interest rate. However, since this model is a non-dynamic model, there is the presence of fixed relationship between the real interest rate and the nominal interest rate. In IS–LM model, the IS curve summarizes the equilibrium that exist in the goods market. The LM curve, on the other hand, summarizes the equilibrium in the market for money. The equilibrium in the IS–LM model are represented by the intersections that occur between the IS and the LM curves.
The equation used for the IS curve is:
Y = C (Y – T (Y)) + I (r) + G + NX (Y)
In the above equation, Y is used to represent the national income; C (Y – T (Y)) represents the consumer spending. The consumer spending is an increasing function that is calculated by income (Y) minus the taxes T(Y). I (r) refer to the investments as declining function of the real interest rate. G represents the government spending. Lastly, NX (Y) represents the net exports. The net export is calculated by subtracting the exports from the imports.
The equation used in the LM curve is:
M / P = L (i, Y)
In the above equation, M / P represent the supply of money as opposed to the nominal amount M and P as the price level. L represents the real demand for money. However, L is subjected to interest rate represented as i and the real income represented as Y.
3.0 The multiplier effectThe extent of the multiplier effect of an independent use change is littler in the total business investigation, because of a change in the value level, than in the standard Keynesian cross-examination, which accepts a steady value level (Hein and Stockhammer, 2011, p. 59). The change in the value level triggers an inverse change in total uses to that of the beginning independent use change, consequently lessening the extent of the multiplier sway.
At the point, when assessed utilizing the total market, the standard Keynesian multiplier effect is dampened by value level changes. Changes in the value level trigger the genuine offset impact, investment rate impact, and net fares impact, which cause a development of the total interest curve and consequent changes in total consumptions. These total uses alter in the inverse course of the introductory change in the self-ruling consumptions that set the multiplier transform in movement.
Standard Keynesian investigation is in the light of the presumption that the value level is steady or an exogenous variable of the model. Aggregate market sector examination, conversely, incorporates the value level as an endogenous variable. In Keynesian examination, total creation is accepted to climb or tumble to match any progressions in total consumptions. In aggregate market sector examination, total generation is all the more sensibly subject to requirements that are reflected in a value level change (Hein and Stockhammer, 2011, p. 67). An outline of the aggregate market is in place. The show to one side shows the standard short-run aggregate market sector examination (Asada, 2010, p. 76). The adversely inclined total interest curve is named AD, and the decidedly slanted short-run total supply curve is marked SRAS. The crossing point of the two curves demonstrates balance at value level Po and total generation of $12 trillion.
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Diagram 4 – The Keynesian multiplayer effect
Key to this present exchange, any stun to the total business, particularly brought on by a movement of the total interest curve, brings about a change in the value level. Also, this value level change will then cause a development of the total interest curve as harmony is restored. Because of this, assume that there is an increment in total interest, for example, that brought about by a $1 trillion increment in speculation consumptions (Asada, 2010, p. 79). This, obviously, causes a rightward movement of the total interest curve and results in another balance. Click the [AD Increase] catch to delineate this movement.
Consider the rightward movement of the total interest curve. The standard Keynesian multiplier investigation accepts that the value level stays unaltered. Accordingly, the introductory flat move of the total interest curve shows the Keynesian multiplier. Click the [Keynesian Multiplier] catch to delineate. The level movement of the total interest curve, measured at the first value level, Po, is the change in total creation coming about because of the Keynesian multiplier. This is demonstrated by the development from point A to point C. This level of total generation is $16 trillion, a $4 trillion build coming about because of a $1 trillion speculation infusion and a multiplier of 4.
On the other hand, the aggregate market sector examination shows that the value level does not stay consistent at Po, however rather climbs to P1. This increment in the value level prompts the genuine equalization, investment rate, and net fare impacts, which cause a development of the total interest, curve from point C to point B. The higher value level, accordingly, hoses the first Keynesian multiplier process. As opposed to a multiplier of 4, which triggers the $4 trillion change that accomplishes $16 trillion in total generation, the cost balanced multiplier is just 1 for this situation. At the short-run balance convergence point B, the change in total generation is just $1 trillion, and the harmony level of total creation is $13 trillion.
4.0 Effects of the Turkish austerity program of 2001 on economic growth and unemployment.The implementation of the protocols with respect to the re-establishment of the financial sector and keeping up general society financing parity was effective and helped Turkey to accomplish a more steady structure than it had before the 2001 emergency. The most imperative changes influenced the financial systems. The fundamental regulation changes went for constraining the operations of open banks that would bring about misfortunes and to restrict sponsorships to the legislature through open banks (Öniş and Şenses, 2009, p. 78). Also, capital was brought up keeping in mind the end goal to restore the financial structure of open banks, and improved straightforwardness was presented in the financial systems. Numerous regulations were organized with a specific end goal to give a strong structure to the asset‒liability parity of private banks. Notwithstanding, the time of strong GDP growth somewhere around 2002 and 2007 saw in the meantime declining levels of open net obligation stock: as percent of GDP, it slowly declined from 61.5% in 2002 to 28.2% in 2008 as per the Turkish Treasury. Strong GDP growth coupled with obligation diminishments before the emergency and genuinely low plan shortfalls of 0.6 to 1.8% of GDP somewhere around 2005 and 2008 gave financial sector to generally extensive financial reaction bundles to neutralize the emergency (Öniş and Şenses, 2009, p. 85). As per the evaluations of SPO (2009), the aggregate expenses of the direct financial measures taken because of the worldwide emergency added up to (and were relied upon to sum to) 0.83%, 2.25% and 2.22% of the GDP in 2008, 2009 and 2010, respectively.
As a nation with structural current account shortage, Turkey necessities external finance which makes the financial channels an essential one. At the point when the financial streams to creating nations lessened amid the emergency period, access of private division to outside financing is adversely influenced. The result for Turkish economy in this worldwide emergency case was fast decrease in venture, sparing crevice, current record shortfall, outside immediate investment, portfolio inflows and other outer financing (Öniş and Şenses, 2009, p. 90). While, current record dropped down because of extremely feeble residential request in 2009, net capital streams likewise contracted because of lower liquidity accessible in worldwide financial markets.
Diagram 5 – The external capital flow for Turkey
Diagram 6 – The GDP ratio of Turkey
In the current point in which the economies are joined well with one another by means of genuine segment or money-related part associations and simple change of data inside and between nations, desires channel have turned into an essential wellspring of transmission. Particularly the late worldwide emergency made a research facility case for parallel developments of certainty markers and worldwide financial circumstance (Öniş and Şenses, 2009, p. 95). Turkey was one of the nations in which buyer, financial specialist and business certainty showed quick crumbling. All things considered, as we will see later the recuperation of these markers and their appearance on genuine financial information were as quick with the usage of fruitful hostile to emergency policies.
All things considered, three diverts cooperated in 2009, which prompted a compression of economy by 4.9 percent particularly because of quick decrease in household request. The emergency had additionally noteworthy effect on Turkey’s work market. The most purported impact was seen in the climbing work investment rates, particularly that of women (Öniş and Şenses, 2009, p. 96). This was thought to be an impression of command of “included specialist impact” over “disheartened laborer impact”. In spite of the fact that Turkey kept on making new employments even at the crest of the emergency, unemployment rates expanded generously with the ascent in support rates.
Diagram 7 – The Participation and Unemployment Rates for Turkey
Macroeconomic steadiness and financial space achieved between 2002 and 2008 in Turkey made space for the move to execute dynamic hostile to emergency strategies. In addition, solid structure of saving money area and low presentation of the division to Universal lethal resources shielded the part from damaging outcomes of the worldwide emergency. This additionally kept the area from requiring open backing amid the emergency which made Turkey the main OECD nation which did not need to back its saving money division (Öniş and Şenses, 2009, p. 98).
The embodiment of macroeconomic strategies amid the emergency was to get back the certainty the economy in a short period. The aim was not furnish the economy with nonstop backing of money related and financial policy (OECD, 2002, p. 35). Consequently, Turkey executed auspicious, focused on and measured macroeconomic arrangement blend, and evacuated the instability encompassing macro arrangements with an early declaration of the passageway system from fiscal policies in September 2009 as a feature of its medium term financial program and passageway procedure from fiscal strategies in April 2010.
Progress in disinflation, decrease in inflationary desires and upgraded trust in financial strategies gave the Central Bank of Turkey without hardly lifting a finger fiscal conditions by diminishing strategy premium rates and infusing enough liquidity to the business sectors. Also, drifting swapping scale administration that Turkey has been executing since 2001 empowered the financial power to act with huge adaptability. All the while, the Central Bank of Turkey dropped down pointedly the arrangement premium rates and forestalled liquidity blockages in credit markets. All out lessening in the policy rate added up to 1025 premises indicate from November 2008 November 2009. This diminishment in arrangement rate was the most noteworthy in the OECD and among other developing markets. Additionally, cuts in obliged store proportions for Turkish Lira and remote cash stores were instrumental to help liquidity and loaning. The Central Bank of Turkey suspended its remote trade purchasing barters from October 2008 to August 2009 and furnished the business sector with extra outside trade liquidity through outside trade offering barters.
On the financial side, the financial space achieved in the pre-crisis period empowered the Turkish government to take some expansionary financial measures and duty diminishments that helped the shopper interest to recuperate rapidly. Another investment motivation framework was placed set up to enhance venture environment (OECD, 2002, p. 60). In addition, some expense diminishments and absolutions were acquainted withdraw in resources held in outside of the nation by the inhabitants. Having exceptionally very much aware of shielding work market from the hindering impacts of the emergency different assessment and premium decreases and motivations gave the organizations and SMEs and sent out firms were backed by diverse credit and credit assurance plans.
5.0 ConclusionTurkish economy confronted the worldwide emergency with reinforced basics. Having a sound financial position and solid managing an account segment were the principle fixings of the quality of the economy. High coordination of Turkish economy into the worldwide economy prompted the transmission of the worldwide emergency into the residential economy by means of exchange, money related and desire channels. In this vein, the worldwide emergency had a huge, however, a somewhat fleeting effect on the Turkish economy.
Being mindful of the part of the trust in the emergency environment, the policymakers concentrated on certainty building both on the speculator and purchaser side, and constraining employment misfortunes in the economy when creating hostile to emergency arrangements. The Turkish emergency administration experience, consequently, is a case for the essentialness of assurance of soundness and trust in the economy amid turbulent times. On the customer side, provisional assessment diminishments in chose products, more broad utilization of unemployment protection and work market arrangements to farthest point work misfortunes were powerful apparatuses recuperating the certainty. On the business side, open backing to decrease income and non-wage expenses of the occupation, augmentation of open credit ensure offices and specific venture motivating forces were of profit. Besides, the early declaration of passageway systems from both financial and fiscal policies recharged the certainty for the financial arrangements by guaranteeing that long haul strength in the economy won’t be placed in risk.
These tries paid off rapidly, and Turkey figured out how to develop at high rates in 2010 and 2011, in view of solid residential interest, although outer conditions stayed feeble and delicate. The economy kept on making new occupation in the emergency year, and vocation creation was more unmistakable in the accompanying two years, taking the unemployment rates again to the pre-crisis levels.
ReferencesAsada, T. (2010). Monetary macrodynamics. London: Routledge.
Dées, S., Pesaran, M., Smith, L. and Smith, R. (2010). Supply, demand and monetary policyshocks in a multi-country New Keynesian model. Munich: Univ.,Center for EconomicStudies.
Hein, E. and Stockhammer, E. (2011). A modern guide to Keynesian macroeconomics andeconomic policies. Cheltenham, UK: Edward Elgar.
OECD (2002) OECD Economic Surveys: Turkey 2002. Paris: OECD Publishing. DOI: HYPERLINK “http://dx.doi.org/10.1787/eco_surveys-tur-2002-en” http://dx.doi.org/10.1787/eco_surveys-tur-2002-en
Öniş, Z. and Şenses, F. (2009). Turkey and the global economy. London: Routledge.
List of figureDiagram 1 – The calculation for The Keynesian Cross
Diagram 2 & 3 – The IS-LM model curves
Diagram 4 – The Keynesian multiplayer effect
Diagram 5 – The external capital flow for Turkey
Diagram 6 – The GDP ratio of Turkey
Diagram 7 – The Participation and Unemployment Rates for Turkey
Trading and investment are growing at a very fast rate
Investment pros
Name
Institution
Summary
Trading and investment are growing at a very fast rate. The market structure has changed fundamentally and business people have indicated presence of low frequency trading opportunities (O’Hara, 2014). The chances to purchase are not limited but buyers are few and this has tempted most investors to look for bigger gains. Consequently, there is a need for implementing smarter ideas inorder to survive in the market. In fact, by adopting business strategies that are appropriate for the better frequency in business world, investors can enjoy reasonable gains. Otherwise, most investments involve some degree of risks and as such, investors must be willing to risk. Therefore, to succeed the project investors must be in position to identify and control the risks associated with the investment.
Discussion
Business people need appropriate tools of understanding the dynamics of the market structure. The conventional yearly consequences of expenses and the related costs are very essential in recognizing how expenditures in business tarnsactions matter as period horizons lengthen. This is because most traders view the consequences as modest irrespective of the fact that investment costs are known for damaging investors’ ways of life. Investments may be made indirectly via intermediaries like pension funds, brokers, insurance companies and banks. These institutions might pool money obtained from a huge number of clients into funds like unit trusts in order to undertake huge scale investments.
They entails diversification of specific assets with motive of avoiding unproductive and unnecessary risk but many businesses end up failing because of using wrong measurers (Bodie et al., 2014). For example, with the rising use of advanced technology, machines are now more capable of doing multiple the work that employees used to do. Of course, the argument on whether machines are more beneficial in investment than human labor need to be looked to be examined, but there is no doubt that machines bring several benefits. This is due to the fact that machines are more robust than human as they hardly suffer from fatique. As a result, machines can work consistently to produce high-valued product with little or no mistakes. For other employers, using machines may help them to make reasonable savings since machines do not ask for over-time, pension or even a salary. Consequently, employers can save money on staff welfare since the business may only require technicians to check whether machines are properly maintained (O’Hara, 2014).
Business risks are associated with income variance and factors like contribution margin ratio, financial laverage consequences and operation leverage results ought to be considered carefully. Various risk analysis techniques are often taught in business school in programmes such as Financial Engineering and Actuarial Science. However, some of the risk analysis methods can be self taught using tailored modules that ara available on the internet. These ratio shows the operator whether the incremental gain resulting from a particular transformation of sales has constructive or destructive effects, as most businesses use debt to fund their operations (Bodie et al., 2014). Indeed, managers should analyze business risks by simply studying variations in operating income and sales over a given period and investors can learn this by using better structured methods such as using statistics.
Conclusion
In conclusion, unless investors recognize the existence of a paradigm shift in the investment market, the adopted marketing strategies may not be effective.Therefore, portfolio traders and managers need to focus on the high frequency business globe by expanding beyond the ancient styles of trading.This might be achieved by embracing modern technology, which is more likely to reslt in improved performance and reliability. In addition, risk analysts , traders, and portfolio managers need to train in the latest risk analysis techniques, especially in the wake of an increasingly global economy. There is no doubt that more robust training in investment trading will result in better returns for all the stakeholders.
References
Zvi; Kane, Alex; Marcus, Alan J. McGraw-Hill, B. (2013). Investments (9th ed.). ISBN:
9781308016245.
Maureen O’Hara. (2014).High-Frequency Trading and Its Impact on Markets. Financial
Analysts JournalVolume 70 Number 3.