increase of interest rate put people
with housing loan unable to redeem their loan
US government prosecuted 1800 executives of bankrupted S&Ls
Government also enacted ‘Financial Institution Reform, Recovery and Enforcement Act’ to persecute moral hazard
Strong attitude of the administration convinced tax payers of spending public fund to settle the discordant market
United States gave a military aid to Iran to break free of British and Russian dominance in Persian affairs. American business and industry leaders supported Iranian’s drive to modernize its economy and free itself from both British and Russian influence. Let me remind that AIOC, an Anglo-Iranian Oil Company which was established in 1908, shared the profits this way: 85% belonged to Britain
2. the securitization of financial assets
&
the interconnectedness between financial institutions both within and across countries
*Huge deficits of the financial institution
*The credit crunch
*Increasing voltility of stock price, interest rate, exchange rate
1.International society donation
Culture marketing
When people have disaster damage in domestic and international, help them with relief activity and various educational industry
평창 winter Olympic inviting activity in 2018
2.Local society donation
Cooperate with other industry, deliver saved money to multicultural family children
Develop ‘sky love English class’ nearby Inchon airp
facilities (water and sewage)
Irrigation facilities
Communication facilities
1. Enhance construction
investment
Hyundai Research Institute : invest one trillion won, we can increase construction investment by 0.52%p
4. Increase Economic Efficiency
the long term effect of SOCI
ease traffic congestion
save the distribution expenses
provide stable energy supply
Moral hazard
When implementing donation-based admission, market failure can occur because of asymmetric information. Universities can spend money earned through donation in an inefficient way because it is difficult for the government and people to know how the university spends contribution and it is hard to monitor university’s behavior. It is called moral hazard. “Moral hazard is a spec
2-2. 국부론(國富論, The Wealth of Nations / An Inquiry into the Nature and Causes of the Wealth of Nations)
그림 2. The first page of The Wealth of Nations, 1776 London edition
이 세상에서 사라진 지 200년도 더 되는 아담 스미스가 아직까지 사람들 입에서 회자되는 이유는 그가 평생 동안 집필한 저서 2권 중 다른 한권인 『국부론』때
1. What is public enterprise?
* Definition
Public enterprise means corporate economic entity that all assets owned by the Public and registered according to law.
Public enterprise has both characteristics of profit-making corporate and public corporate as a form of Production and operation organization. The pursuit of profit reflects the preservation and appreciation of public assets. The publ
1.3. The fall of Arthur Anderson accounting firm
Arthur Anderson was the auditor and consultant of Enron. However it overlooked the corrupt accounting practice of Enron, which was one of the main reasons of the crisis. After the Enron scandal, Andersen lost its major clients and got accused by its negligence in auditing Enron.
1.4. Mid- and long-term impacts on American energy industry
After E