Comparing Financial Systems Essay Example | Topics and Well Written Essays - 5000 words

Comparing Financial Systems - Essay Example Economic globalization is the utopia towards which the world is moving. Yet, it is deemed to be practically impossible due to the different financial systems that exist in different countries. While some countries have a severely competitive market, others have a bank based economic system. Bank based system poses to secure ‘and mobilize savings, allocating capital, overseeing the investment decisions of corporate managers and also providing risk management vehicles.1’ Whereas, the market system is more competitive in a dual way. Different companies in the market are competing with each other and also the companies compete with the banks, which are still considered to be the conventional mode of getting savings earned by people. Yet, in the countries like U.K and U.S.A, people do risk to invest in the share markets and other companies which often help them earn more money than bank interest. Many analysts across the world have suggested that the market based financial sy stem is more lucrative than the bank based system, but the risk factor involved is also very high as compared to the bank based system, which has minimal risk factor. Now a study on the different financial systems of the world is bound to raise crucial questions which will be chronologically answered in the report. Chapter 1 Broad Classification of the Financial Systems – Bank Versus Market The development of any country is based on the reforms introduced and to introduce any reform, a stable financial system is very necessary. Structural reforms are mostly based on the financial system of a country. Most developing nations which have a centralized economy lack a full fledged financial system which is a big disadvantage for them. Financial system has a vast positive impact of financial development on economic growth and development 2. The financial structure among countries can be either bank based or market based or underdeveloped. The underdeveloped economies have both unde rdeveloped banks and market values. But flourishing financial systems can fall into either bank based financial system or market based one. It is popularly assumed that bank based financial systems are less flourishing compared to the market based ones but Japan stands as the biggest flourishing example of bank based financial system. Countries with a stronger economy and monetary strength have better developed financial systems. The countries which have a higher income always tend to get inclined towards the market based financial system because in these countries the stock market has higher efficiency and are relatively more active compared to the banks. The countries which have low corruption and protect shareholder’s rights are more inclined to the banks as they are looking for security more than earning 3. The bank based concentrates on the different roles of the banks such as getting information about the firm, the board of directors and trying their best to improve the allocation of funds as well as corporate governance. It also

Reflectiion Paper Essay Example | Topics and Well Written Essays - 1000 words

Reflectiion Paper - Essay Example Indeed, the psychological paradigms of Dina’s personality become important issues within the social setup, especially social class and racial divide. The reflection on past events by Dina becomes the major factor that is able to help her to reconcile herself with the past and look forward to future. Dina was brought up within a stifled environment of a disturbed family where her mother loses her will to live and ultimately dies. She is wary of human relationship because she has seen her mother was trampled by her father. She not only carries the stigma of being poor but also is hugely distrustful of whites. Her defiance is actually her defense to shield herself from the imagined bullying by white students and teachers. That is perhaps the reason that during orientation games in Yale, she is provoked into stating that she would like to be a revolver! While revolver might be representative of violence, for Dina, it was a shield that could probably give her the emotional and physical security that she craves. The revolve might also be symbolizing the social violence within our society that the narrator voices when she says that her mother ‘would never be able to get where she wanted to go’. The poignancy of Dina’s thoughts and her behavior reflect the constrain ts of social conditioning. Dina’s character is intense and highly volatile but hides a softer human touch which she is afraid to show to the world. Her relationship with Heidi, a white girl is scintillating example of unpredictable human behavior which is easily swayed by love and trust. Heidi’s persistence bears fruit and Dina joins the rest of the students in the college canteen and also enrolls herself to become dishwasher. Subsequently, her interactions with others reveal the changing attitude of Dina and show the strength of her character that is more inclined towards justice and freedom, promoting