Investment Strategy and Portfolio Management Assignment - 2

Investment Strategy and Portfolio Management - Assignment Example When choices increases, shaping and monitoring investment portfolios becomes more complicated and it is more exposed to excessive risks. To succeed in portfolio market, it requires one to make more research in order to learn how to evaluate fundamental issue and manage related risk. This increases effectiveness to clients and organization leading to more productivity. In order to succeed in investment environment, Nelly company they should have proper management of cash. They should always have knowledge of cash they receive from regular contribution of their members made and how much the fund grows. This will enable them to know the amount of money they will use to finance education (Kendrick, 2009).Later the company management should discus and make decisions on how to finance the education and how much they should have for the company to profit which will be available for contributor to make the withdraw. They should also come up with rules which should be favourable for the company and the contributor to minimize the amount they should withdraw than the amount they contribute (Elton & Gruber, 1995). The success of Nelly Company can be brought by setting complicated and favourable rules for members who would like to withdraw their funds and which can bring the member core benefits in future. The members who have more than four years and would like to withdraw their funds can be given a portion, say, 20 percent of their net contributions. The remainder should be used for funds creation at an interest which then and be allocated to these members on a residual basis. This ensures that the company remains a going concern and may not necessarily liquidate (Aiken, 2008). The company can also borrow quickly from other financing institution under a line of credit agreement, which permits company to have up to a specified maximum amount. The company will be able to buy marketable

Developments in european & pacific rim trade Essay

Developments in european & pacific rim trade - Essay Example However we there can be several exceptions to this first rule - which is the first article of the General Agreements on Tariffs and Trade (GATT) - such as for example giving developing countries special access to a market or raising barriers against products being produced unfairly in other countries. The second part is the National treatment: treating foreigners and locals equally meaning that locally-produced goods should be treated equally when compared to imported goods once the imported goods have entered the national market. The same thing has also to be applied for services, trademarks, copyrights and patents. The second principle of WTO favors the lowering of trade barriers meaning customs duties and tariffs and measures such as import bans or quotas that restrict quantities selectively. Since the creation of the GATT, there have been eight rounds of trade negotiations to progressively abolish these barriers, the undergoing ninth round being the Doha Development Agenda. The predictability of international trade will guarantee a continuous stability. Therefore WTO encourages its members not only to lower trade barriers but also not to raise new barriers. When a country opens its market for products or services, it is considered as binding its commitment. However a country can change its bindings but only after a round of negotiation. With this principle WTO insists on the point that the organization i... WTO allows tariffs and some form of protectionism. Its true aim is to establish an environment with the help of specific rules to favor fair trade. These rules are for example the rule of most favored nation, national treatment or rules on dumping and subsidies. Encouraging development and economic reform Finally, WTO's last principle encourages development through flexibility for developing countries to implement WTO rules and special assistance and trade concessions in favor of these developing countries. (World Trade Organization, Principles of the Trading System) However as much as we can consider these principles being the best ground for efficient and fair trade, the reality is otherwise as we can see through the example of the Multi Fibre Agreement On January 1st, 2005, the Multi Fibre Agreement (MFA) expired. The MFA was a measure taken regarding the world trade of textiles and garment from 1974 to 2004 which imposed quotas on the amount that developing countries could export to developed countries. The WTO admitted that the MFA was a special regime outside the GATT rules and that WTO members have committed to remove those quotas by 1st January 2005 When the quotas from a country like China was reached, importers turned to less competitive suppliers located in countries that had spare export quotas and whose only advantage was low wage. Today, the less competitive developing countries are not called as back up because countries willing to import textile can only be supplied by one and only exporter, the most competitive: China. The importance of China in the textile market has not its boundaries set within developing countries. Since the beginning of 2005,