Emerging Markets Economies Essay Example | Topics and Well Written Essays - 1500 words

Emerging Markets Economies - Essay Example This paper is based on the writings of Rousseau and Sylla on financial institutions and their role in expansion of trade and economic growth. Lessons which can be learned by emerging economies from the US are presented and described at length within this paper. Moreover the paper discusses the implementation of various models for a sound financial system and description of its role in enhancing expansion of trade and economic growth of emerging markets. It is through a good or sound financial system that rapid economic growth can be realized by emerging market. As a result, emerging economies must put in place a sound public debt and finances system (Rousseau and Sylla, 2001, p. 2). The financial markets are critical in the development of any economy and thus emerging markets must prioritize stabilization of their financial systems. For example, the remarkable growth of the US capital markets and banking systems is attributed to the rapid growth of its economy and acceleration of tra de within the country and internationally (Rousseau and Sylla, 1999, p. 4). This illustrates the role of financial markets in empowering individuals and businesses through provision of credit facilities as capital to enhance their trade. The efforts of the individual businesses in their trade endeavors will in return promote the ultimate economic growth of the economy. Moreover, the confidence and morale of investors is improved when there is availability and access to credit facilities. As a result, the investors will make use of the credit facilities and invest in the economy leading to expansion of trade and the economy in general. Monetary exchanges which characterize trade activities are promoted through a sound financial system. Banks enhance business transactions which are attributed to expansion of trade within emerging markets and thus growth of businesses. Rousseau and Sylla (2001, p. 42) emphasize that expansion of businesses into corporations and their internalization de monstrates a rapid growth of the economy. Rousseau and Sylla (1999, p. 15) reaffirm that the growth in stock of money or liquid money through expansion and increase of bank loans promotes financial development, economic growth and trade. For example, the increased liquid money in the expanded US bank credit boosted foreign investment through investors who were now more confident to invest in the economy. As a result imports were encouraged in addition to the increased application of modern production methods and thus internal economic growth. In this sense, financial are accredited for expansion of a country’s trade into import and export trade. Because of the growth of an emerging market’s trade into international orientations, foreign exchange is attained and hence further growth of the economy. It is the liquid money which finances businesses within an emerging economy Rousseau and Sylla (1999). The rate of exchange of liquid money within an economy demonstrates tha t there is rapidity of trade activities and hence a reflection of an expanding economy. According to Rousseau and Sylla (2001, p. 21), stable monetary arrangements within a country is one of the most important prerequisites to expansion of trade and growth of the economy. Monetary arrangements include policies which govern the financial systems. This means that emerging markets or economies must

Uncertainty reduction theory Essay Example | Topics and Well Written Essays - 750 words

Uncertainty reduction theory - Essay Example lationship has been made certain and they seem to be engaging in verbal discussion probably disclosing information about self and reciprocating each other’s feelings based on how they are looking at each other. The film the Twilight is about a young man who is a vampire and a young lady who are schoolmates. The man distances himself from others and does not consider himself likeable to anyone. The young woman however sees something different in him that she likes and hence tries to find out more about him as well as seek courage and opportunity to be close to him. The Twilight is the best film to explain the concept of uncertainty reduction theory. Bella observes Edward from a far in the cafeteria trying to figure him out and wanting to know about him and why he seems mysterious. This is the passive strategy phase where there is simply observation of the person in an environment that seems natural. Bella goes further and starts asking fellow students about Edward in a bid to find out more about him and this is the active strategy phase. The fact that they take the class is an added advantage to the fact finding mission. Finally the opportunity to talk to him comes when Edward is made Bella’s Biology partners and they get to talk. This is the interactive strategy phase of the theory (Littlejohn and Foss 52). The talk reduces the uncertainties Bella had about Edward as she gets to know him better through verbal output as they talk and non-verbal warmth as either party shows signs of willingness to be more than lab partners. They self-disclose information about each other while communicating and they start reciprocating their feelings towards each other once the liking and similarity phase has passed and they have formed a relation even though it has its own share of complications (Knapp and Vangelisti, 64). The uncertainty reduction theory has helped explain my relationship with my best friend fort the last four years. I saw her when she moved into my