2. Policy Analysis with Partial Capital Mobility
• Expansionary fiscal policy, fixed exchange rates
IS curve shifts right, Y and R increase.
Higher R increases foreign capital inflow.
• Creates BP surplus and upward pressure on currency.
Central bank intervenes in the foreign exchange market.
• Buys excess foreign currency.
Incr
The second largest national capital following Jews.
56% increase in last year, reaching up to $ 390 billion (which is 15 times larger than Korean national budget)
Population of overseas Chinese: around 60 million
50 % of FDI inflow into China
Network chains of Chinese economic regions without any economic restriction from the government.
Foreign Direct Investments (FDIs) are the esse
II. What Are Credit Derivatives?
Derivatives are defined as the exchange or contract which has economic values deriving from the reference assets or index. According to their types, there are overall forward, future, option, and swap. Derivatives are the financial derivatives, which are enabled to trade in the market while consisting of separating the credit risk only to the holder of basic p
☺ The most critical financial component of working capital
☺ The franchisee should seek to minimize the risk of running out of cash
☺ The franchised business must ensure that bills due (accounts receivable) are collected in a timely manner
☺ The franchise owner may develop policies and practices
☺ Another way to significantly reduce working capital requ
1. Policies and reforms -Special Economic Zones (SEZs)
- Economic development-focused policies
- Putting old politics behind
Special tax incentives for foreign investments in the SEZs
Greater independence on international trade activities
Products are primarily export-oriented
Attracting and utilizing foreign capital