Global Financial Management and Human Resource Management

The first stage in defining a risk management strategy includes the formulation of superior objectives as basis for the firm’s foreign exchange risk management policy. Only with respect to these objectives embedded in the firm’s risk management strategy can an appropriate policy in managing foreign currency risks be developed. For instance, GM Corporation has identified three primary objectives which should be met by the foreign exchange risk management policy to ensure the ongoing business results.

A currency exposure is any business operation whose profitability can be impacted by a currency exchange rate fluctuation.

Nowadays, investing in real estate is one of the lucrative commercial sectors that will provide large chances for an investor to generate cash with no trouble. Real estate is a commercial industry that, over time, has dealt with very small threats or failures. This is measured in such a way that investing in real estate is very much gainful and favorable when assessed to divide selling and buying cash or perhaps trading gold, silver, or even platinum.

There are several reasons for me choosing this particular area to research, the first is a strong interest in finance and my desire to work in this sector after graduation. Secondly, the potential volatility and substantive gains and losses associated with the property market, make for an interesting study area. Looking at the foreign investment dimension culminates both of the aforementioned contemporary aspects, with my aim to add knowledge and understanding to the world.

The Housing Disaster and subsequent Great Recession of 2007 were predicted by several well-known Economists, although it still caught a majority of the Country and World by surprise! I wasn’t prepared for this economic shock either, as I had just finished real estate school and passed my State and National licensing exams during the previous year. It was a tough start to a real estate business but proved valuable in the lessons I learned during those next several years.

The current economic-financial crisis was indeed caused by the simultaneous occurrence of events in different parts of the world that all had a negative effect. These events are subtly different and therefore it is common that only one event is held responsible for the crisis. In reality, the world economy became critical due to the mix of four major events: 1) the unrestrained greed of financiers in the U.S. and U.K., which transformed bad mortgages into toxic financial assets 2) the habit of getting deeply indebted in the U.S. and U.K., 3) the excessive liquidity in Europe, 4) the real estate bubble in the U.S. and some European countries (Thomas, 2011) At the beginning of the financial collapse in the United States, many commentators, among which was the President of the Federal Reserve, hastily affirmed that the situation would only affect the United States and at most, the UK, where the banks,

The recent recession that began in 2007 and led to the stock market crash of 2008 was partly due to real estate and the mortgage market, and it was portrayed in the newly released movie, The Big Short, adapted from the book The Big Short: Inside the Doomsday Machine by Michael Lewis. The book is about the creation of the housing and credit bubble during the early 21st century and how it burst, causing the 2008 recession. It sheds a spotlight on specific individuals who predicted the crisis before anyone else did. The book is important to read because it explains how housing mortgages and loans work, in addition to showing how critical real estate is to the U.S. economy. The housing crash had several factors, but members of the industry should have conducted more research to have avoided such problems. The American public should have knowledge about real estate concepts and terms, for they are important in purchasing houses, investing, and making better business decisions that hopefully don’t lead to another

The first sign of the “ Financial Crisis ” occurred in 2006. Many house prices began to drop. Realtors at first where thrill, they considered that the overexcited house market will finally return to it’s stable place. What real estate agents didn’t realize that many property owners have taken loans that were about 100 percent or more from their property worth. Many people blamed the Community Reinvestment Act of 1977 . This act motivates banks to

The United States of America has seen its real estate market drastically decline which set off the 2007 global credit crisis. These have led to several countries examining their own economies for signs of weaknesses, particularly focusing on their financial institutions and their property markets.

The year 2008 was marked by an economic crisis in the United States that had international repercussions. Many events are cited as instigators of the subprime mortgage crisis, however, in the United States, the crisis was caused by three main factors: poor lending practices, the dot-com bubble burst and the after-effects of 9/11. Together, these factors led to the creation of a housing bubble that burst in 2008. A housing bubble is “defined by rapid increases in the valuations of real property until unsustainable levels are reached in relation to incomes and other indicators of affordability” (Bianco, 2008).

The Global Financial Crisis, also known as The Great Recession, broke out in the United States of America in the middle of 2007 and continued on until 2008. There were many factors that contributed to the cause of The Global Financial Crisis and many effects that emerged, because the impact it had on the financial system. The Global Financial Crisis started because of house market crash in 2007. There were many factors that contributed to the housing market crash in 2007. These factors included: subprime mortgages, the housing bubble, and government policies and regulations. The factors were a result of poor financial investments and high risk gambling, which slumped down interest rates and price of many assets. Government policies and regulations were made in order to attempt to solve the crises that emerged; instead the government policies made backfired and escalated the problem even further.

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

Just after ten years of Asian financial crisis, another major financial crisis now concern for all developed and some developing countries is “Global Financial Crisis 2008.” It is beginning with the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and spread like a flood. At first U.S banking sector fall in a great liquidity crisis and simultaneously around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. (Global issue)

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

China is one of the major economical players in today’s international market. China’s economy is the “seconds largest in the world after the United States” (Joseph, 63). This is a striking achievement due to fact that China is a “developing country”. China has achieved a great amount of success through the collaboration of political and economical regimes. The economical growth in China led to “one of the biggest improvements in human welfare anywhere at anytime” (Kristof, 15). Currently, China is experiencing a real-estate bubble. This eventually will hit a climax, disrupting the real-estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing