The macroeconomic environment of a firm as suggested by Oxelheim, L. and C. Wihlborg., (1987) is constituted by a set of four relative prices; the inflation rates, interest rates, exchange rates and political risk premiums (the premium charged by the company for the rules about the uncertainty of the market game). In any developing economy, it is important to consider these particular macroeconomic variables and how their behavior over time affects the company’s health and ultimately its survival
more than the price of those goods they buy. If we see the monetary policy circumstance of both developed and under developed countries, we find that money demand has important allegations. M2 plays an effective role in policy target variable in macroeconomic, variables like real interest rate and economic activity. Current flow in inflation in Pakistan given that previous link of years and stories of successes through inflation targeting in different countries have transformed in the argue on the monetary
. “The impact of foreign debt on the economic growth of Pakistan Research problem: The problem of this proposal is to distinguish between the negative and positive impacts of foreign aid. I highlighted the relationship between the two variables impact of foreign aid and economic growth. I want to analyze that whether is it positive or negative? I want to analyze that the increment in foreign aid affects our imports and exports gap and also the saving investment gap either negatively
In this study, we refer the external determinants to macroeconomics variables that is Gross domestic products(GDP) . Whereas Real gross domestic products (GDP) will measure the total economic activity in one country and according to Bekaert et al., (2007), they says that real (GDP) growth rate have significantly
II. Theory and Literature review 2.1 Review of important previous studies of cash holding issue Cash holding is an important financial and strategical issue for a corporation and also one of the hot issues of foreign and domestic academic researches. The concern for the cash holding issue could date back to the Keynesian theory of the demand for money. This theory is mainly focused on the demand for money from the perspective of macro economy. The theories and empirical studies of cash holding issue
LITERATURE REVIEW A number of causes have been represented in various literatures for financial crisis. A seminal paper by Krugman (1979) proposes that crisis occur when a country having fixed exchange rate tries to oppose fiscal imbalances by deficit financing. It leads to imbalance on foreign currency market and exhaustion of foreign reserves and hence led to collapse of the economic system. The view of long term fiscal imbalances being serious of development of financial crisis came to be known
fiscal policies. This is a library study where existing literature on the subject matter were reviewed so as to ascertain the effects of value added tax on government fiscal policy and how it can be improved upon so as to meet the requirements of equity, effectiveness and efficiency on value added tax administration. The paper concluded that value added tax affects Nigerian fiscal policy positively. It was recommended that government should review value added tax threshold and the reduction of exemptions
15% were recorded respectively. Achieving price stability in Nigeria has remained one of the main objectives of monetary policy since the 1970s. Despite of this target by monetary authorities, a persistent increase in prices has created a major macroeconomic challenge. The rate inflation increased from a single digit level in 1960s to 16% in 1971 only to move to an all-high level of 34% in 1975. The 1975 high level of inflation has been accredited to the oil boom of the early 1970s. Several control
LITERATURE REVIEW Historically, economists made the effort to advance several theories that were used in explaining the trend of international trade. The theories provided impute to other readers in understanding how the global trade was involved. The traditional trade theories which are well known as classical trade theory provide an insight in regarding country to country trade relations. From the twentieth century, economist identifies new theories that include some new features and present a
It has different effects on different countries based on the host country policies, investment climate and other domestic micro and macroeconomic conditions. In many economies it also promotes competition among domestic firms to improve the level of technology adoption. With increased investment as supplement to domestic capital, it also generates more employment opportunities. With keen