Archive for March, 2010

Campaign Finance Reform Essay

March 29th, 2010 No comments

The United States has a long standing tradition of privately financed political campaigns, and also attempts at political campaign finance reform for just as long. However, it has only been in recent years that political campaign finance reform has had an impact on the elections of politicians.

On January 19, 1999 the bipartisan campaign reform act, was introduced to congress by, senators John McCain, and Russ Feingold. The provisions of the McCain-Feingold bill include above all, a ban on “soft money.” “Soft money” as it is called, are political donations made in such a way as to avoid federal regulations or limits. This type of donation is accomplished by donating to a party organization rather than to a particular candidate or campaign. However, on March 21, 2002 after being approved by the senate by a 60-40 vote, the ban on “soft money” now heads to the white house for approval.

Campaign finance reform is a necessary step in the journey to reclaim our representatives and take control of campaign money. The U.S. Supreme Court has ruled that limits on one’s own campaign must be voluntary. The enrollment of a campaign finance reform package, which would include public funding, contribution and spending limits, a shorter campaign season, and more stringent electronic disclosure requirements, would help alleviate many problems within campaign financing.

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Financial Risks of Conducting Business Internationally

March 29th, 2010 No comments

Recession and financial unrest have in recent years provided an uncomfortable reminder of the financial risk of international business. International corporations, financial institutions, and international investors have experienced that the profitability of their primary business has been adversely affected by major fluctuations in exchange rates, stock market prices and in the credit rating of counter parties. Additionally, the business risk inherent in the primary business of an international corporation, which is dealt with by long term strategic planning and business cycle monitoring, the international corporation has to deal with financial risks.

Interest rate risk – The risk of increased funding costs due to high rates of interest, which may dominate for longer or shorter periods.
Liquidity risk – The risk of running short of cash when liquidity in the banking system is scarce and expensive.
Credit risk. -The risk of losses due to the inability to pay by counter parties,

The internationalization of business has made the management of financial risk more important. It is a natural consequence of conducting international business that a corporation is exposed to one or more of the above financial risks.

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