Financial reward or pay is a core component of employee motivation. Eminent thinkers such as Maslow, McGregor, Tolman, Locke, Pavlov, etc have contributed to our understanding of workplace motivation. Based on a synthesis of their theories, we are in a position to ascertain how key a role pay plays in motivating employees and enhancing their…
Category: Economics
Derivatives are toxic weapons of financial mass destruction?
Derivatives are an integral part of modern financial markets. Simply stated, a derivative instrument is a contract between two entities that specifies the values, dates, notional amounts and other conditions under which the transaction between them is to take place (usually at a future date). Derivates play an important role in streamlining economic activity, as…
Criticism of Efficient Market Hypothesis
“When the price of a stock can be influenced by a “herd” on Wall Street with prices set at the margin by the most emotional person, or the greediest person, or the most depressed person, it is hard to argue that the market always prices rational…in fact market prices are frequently nonsensical.” The Efficient Market…
Article summary: Beware Those ‘Beta Traps by Ben Levisohn
The article chosen for this exercise is titled ‘Beware Those ‘Beta Traps’’. Written by Ben Levisohn, it appeared in the Wall Street Journal on 29th October, 2011. The article cautions investors about the dangers of those stocks whose prices tend to behave with high volatility. The volatility of a stock’s price movement is mathematically represented…
Pirates of Globalization: An overview of Intellectual Property Rights
Intellectual property theft is one of the major concerns for global business leaders. In an era of globalization and fast dissemination of information, fraudulent manufacturers employ sophisticated means of acquiring patented information and exploit it for commercial gain. As Catherine Holahan notes in her article for Business Week, pirated goods now account for nearly 7…
Impact of the Atlantic Array North Devon England wind farm on Tourism, Environment & Jobs
The Atlantic Array North Devon Wind Farm is a key renewable energy project in the region. It is likely to affect tourism, environment and also the economy of the North Devon area. The project is a culmination of pressure on the government to switch to renewable sources of energy, as a shrinking global crude oil…
Freedom Writers and the Economics of Race and Gender
The movie Freedom Writers is one of the most touching to have come out of Hollywood in recent years. Starring Hilary Swank in a lead role, the movie takes up a subject that is at the heart of American culture, namely juvenile delinquency and ways of dealing with it. It also touches upon the economics…
Why have principles of free trade failed to become the norm across polities
Free trade is a buzzing concept in modern times, with most governments across the world proclaiming to promote it. Indeed, the last thirty years or so of global economic integration is based on free trade principles – also referred to as laissez-faire capitalism. Definitely, there are many advantages to be availed as a result of…
The pros and cons of using development assistance/foreign aid to promote democratization and good governance
The granting of foreign aid/ development assistance to developing and underdeveloped countries can often is a challenging task. While these countries definitely need assistance from the developed world, charitable intentions doesn’t necessarily translate into desired outcomes. That is why the decision makers in government and other international financial institutions will have to weigh the pros…
Distinction between Money and Capital markets
The total sum of funds represented by the financial markets can be classified under different segments, based on the characteristics of financial claims being traded and the imperatives of different participants. At a broad level, the financial system can be classified under money markets and capital markets. There are quite a few differences between the…