Financial Management

Using the WileyPlus resources, go to the Interactive Case Study “How News Lifts – or Sinks – World Stock” example located in Chapter 16. To access the entire textbook, use the WileyPLUS Read, Study & Practice link located in the Student Center.Create a ten to fifteen (10-15) slide PowerPoint presentation (be creative). Be sure to use the speaker notes for the details.

1. Select two (2) tech stock companies that attempted to make profits from rising consumer demand after the crash. Analyze how they attempted to make a profit after the crash and discuss any unethical practices.
2. Evaluate the change in consumer demand trends after the crash for each of the tech stock companies you researched. Provide examples with your evaluation and use graphics such as charts, when applicable.
3. Discuss at least two (2) strategies that multinational corporations (MNCs) can undertake in order to make profit by leveraging the growing consumer demand.
4. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia and other Websites do not quality as academic resources.

 

Your assignment must follow these formatting requirements:

 

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

 

The specific course learning outcomes associated with this assignment are:

 

• Examine the components of the financial system including markets, financial institutions, the Federal Reserve, and laws and regulations.
• Use technology and information resources to research issues in contemporary business.
• Write clearly and concisely about contemporary business using proper writing mechanics.

How News Lifts—or Sinks—World Stocks

The growth of computerized trading has closely connected all the developed nations and many of the developing nations. A snapshot of the world markets at the end of a recent month illustrates how events in one country influence stock markets everywhere. In the spring of 2010, Americans grew hopeful that the country was starting to climb out of the worst financial crisis since the Great Depression. The Federal Reserve announced that although American households were not spending as much as before the recession, the U.S. economy was slowly improving. Some companies were making a profit from rising consumer demand. Earlier in the recovery, companies had made money by cutting costs. Prices of stock in U.S. companies such as Apple saw some increases. The computer giant Hewlett-Packard announced that it was buying the smart phone maker Palm. The credit crisis that America seemed to be emerging from struck Greece, which warned that it might not be able to pay off its debts. As a member of the European Union, Greece has adopted the euro as its currency. Other euro countries, like Spain and Portugal, faced financial troubles as well. Standard & Poor’s reduced the bond rating of all three countries. Recently, Standard & Poor reduced the United States’ credit rating to AA+. In an effort to recover, the Greek government enforced an austerity policy that reduced government spending on social programs despite public outrage. Nearly a year later, despite a bailout from the European Union and International Monetary Fund, economists predicted that the only way Greece could get back on its feet would be to restructure its debt, including a program of bond buybacks.

Sources: Tony Czuczka, “Greece Debt Buybacks Raised by Merkel’s Economic Adviser

Field,” Bloomberg Businessweek, April 20, 2011, http://www.businessweek.com; Mark Rohner,

“Greece Ahead of Targets, Will Not Default, Papandreou Says,” Bloomberg Businessweek, June

22, 2010, http://www.businessweek.com; European Union Web site, http://europa.eu,

accessed June 21, 2010; Will Swarts, “Stocks Surge as Earnings Stay Robust,” SmartMoney,

April 29, 2010, http://www.smartmoney.com; Christine Hauser, “Stocks Higher as Earnings

Lift Sentiment,” The New York Times, April 28, 2010, http://www.nytimes.com; Reuters,

“Earnings Lift World Stocks, Greece Stays in Focus,” Economic Times, April 21, 2010,

http://economictimes.indiatimes.com.H