StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

External Factors in a Country - Assignment Example

Cite this document
Summary
In the paper “External Factors in a Country” the author analyzes external factors in a country, which have a profound influence on the behavior of the stock markets. Political factors, economic factors and the policies of governments all over the world have made the stock markets very fluid…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
External Factors in a Country
Read Text Preview

Extract of sample "External Factors in a Country"

It is a widely known fact that external factors in a country have a profound influence on the behavior of the stock markets. Political factors, economic factors and the policies of governments all over the world have made the stock markets very fluid and volatile and many-a-times have even caused losses worth billions of dollars to many investors and traders. Traders in the stock market would always be anxious to know what's in store for them in the coming future. In this particular dissertation, I have clearly analyzed statistically the impact of automation on the Singapore stock exchange and Hang Seng. Now, this section deals with the effect other factors could have played on the performance other than the automation. When it comes to the analysis of other factors, it becomes imperative for me to delve into the political and economic factors of Hong Kong in 1993 and Singapore in 1989. It was clearly evident that the atmosphere of political turbulence affected the stock markets badly. Adding on the fuel, the Chinese and the British relations deteriorated further putting the markets in jeopardy. At that point of time, the market was also jittery about the rising US interest rates and moreover, the standoff that prevailed over the democratic reforms between the Hong Kong and the China sent made the traders feel a little insecure. Hang Seng received a lot of foreign money in the period of 1992-1993 from different investors all over the world, which could sustain the market, at least to some extent. However, many traders argued that the investors had made huge investments eyeing the economic boom in China and not Hong Kong itself. They felt that the investors were looking to invest in China via the shares of the blue-chip companies in Hong Kong. To a large extent, their speculation seems right at the moment, because, at that time when there was absolute political instability in the Hong Kong market, no investor would've come forward to invest in Hong Kong. Hong Kong's governor had proposed to go ahead with the electoral reforms put forward by the British government had been straight away by China and had in fact, enraged them to a great extent, thus signaling the break-up. Under such circumstances, it is too naive for one to expect the stock market to be functioning well. Moreover, it is not wrong to say that the political factors and the economic factors are interdependent for any nation. The tussle between the British and the Chinese over Hong Kong led to overshadowing of the HK economy, which in turn led to the steady downfall of the market. As pointed out in the analysis earlier, the stock markets were automated in the year 1993. This automation was definitely found to have had an impact on the growth of the stock markets, but didn't play it to the expected level. As pointed out above, it was the other factors, which essentially played a spoilsport and hampered the growth of the economy. The inconsistency of the Hang Seng markets can be gauged by looking at the charts given above and the major problem was the inconsistent political situation in the country. Although the political factors were playing a negative role in the development, speculation that China would take over Hong Kong brought in many investors who were actually expecting Hong Kong's economy to step into China's shoes and flourish economically. Hence, it brought in good investments but the bad political situation in the country overshadowed all the investments and hence, created a speculative atmosphere, which was difficult to come out of. On the other hand, the Singapore stock markets were flourishing really well and the political factors in fact, aided their growth and brought many new investments into the country. As such, the country didn't need to face any such situation, which would damage the country's economy and stock markets. As pointed out in the statistical analysis before, Singapore never turned back right from its inception and it stands today as one of the strongest markets in the Asian continent. Automation of the stock markets clearly caused a lot of impact on the growth of Singapore and boosted the growth by many folds. Till today, the stock markets have been going very strong. Comparing Hang Seng and Singapore Stock Exchange, automation clearly has impacted both the national stock exchanges to a large extent, but in the case of Hang Seng, the impact it would have created was overshadowed by other political factors. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“External Factors in a Country Assignment Example | Topics and Well Written Essays - 2000 words”, n.d.)
External Factors in a Country Assignment Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/business/1524838-stock-market-essay
(External Factors in a Country Assignment Example | Topics and Well Written Essays - 2000 Words)
External Factors in a Country Assignment Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/business/1524838-stock-market-essay.
“External Factors in a Country Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/business/1524838-stock-market-essay.
  • Cited: 1 times

CHECK THESE SAMPLES OF External Factors in a Country

Importance of Internal and External Factors to Economic Development

However, the biggest question in the minds of everyone is what has causes varying rates of economic development in a country.... From the foregoing introduction, it is clear that one cannot argue entirely that the level of economic development in a country is attributable to only internal or external factors.... The major internal factors that determine the pace of economic development in a country is the type of governance adopted.... in a country, governments hold much power and are expected to offer leadership in terms of economic and social developments that take place....
10 Pages (2500 words) Essay

Change in Business Environments: External and Internal Factors

The economic condition of a country plays a big role in determining how successful a business may be.... In this regard, it is very crucial for a manager to determine the economic state of a country when making business decisions.... Managers also need to consider the economic policies adopted by a country in making business decisions.... This based on the fact economic policies adopted by a country has a direct influence on the operation of every business venture....
6 Pages (1500 words) Term Paper

Internal and External Business Environments of Wal-Mart

happens to be the second largest industry in the country.... The industry is responsible for 12% of the overall employment of the country.... The country has the presence of some f the major global retailers in the form of Wal-Mart (the largest in the world) followed by Kroger, Target, Best Buy, the Home Depot, etc.... Off late, the retail industry in the country has witnessed a paradigm of the shift in the domain of consumer behavior....
9 Pages (2250 words) Case Study

Noble Energy INC: A Brief Overview

Name of the of the Professor Course Number Date External Analysis on Noble Energy INC Introduction The internal and external environment of a country acts as a hindrance and the means through which companies can achieve their goals.... However, the external business environment remains beyond the control of the organization.... As a result of that it is important to analyze the external business environment and accordingly develop strategies to cope up with the external threats and capitalize on the opportunities of the market....
14 Pages (3500 words) Case Study

External Environment and Social Responsibilities

hellip; If the external environment requires the strict following of rules in a particular country, then the businesses are bound to follow these rules, otherwise, they will be forced to shut down, according to the laws of the company.... If this business does not follow the social values of the country, it will face legal action against it and will have to shut down.... So, no business can prosper if ignores the social environment of the country it is operating in....
7 Pages (1750 words) Essay

Internal/External Sourcing Strategies Paper

With the growing world of globalization, the external sourcing in terms of services and goods has increasingly become a very common practice amongst business institutions and companies, which either want to become global in reach or already are enjoying the status.... In this… Secondly, we will be choosing between internal or external sourcing with respect to our organization, Church & Dwight Co....
5 Pages (1250 words) Essay

National Security Versus Civil Liberty

National securities are those actions taken by a country or nation so as to protect itself and its citizens from internal and external threats.... National security includes internal and external security of a country.... The external security involves protecting the united state against external factors like terrorism, border invasion or any potential foreign invasion.... hellip; This paper looks at the issue of sacrificing a few freedoms to protect national security, both the internal and external security and to ensure the long term viability of civil rights....
6 Pages (1500 words) Coursework

External and Internal Factors That Threatens Service Industry

external factors are the forces that come from outside the financial industries and affect their normal operations directly or indirectly.... In most cases, external factors are beyond the industries' control.... external factors include demographic, political, technological the size of the industries themselves.... The country with a sound financial institution has upper hands in development strategies.... The paper “External and Internal factors That Threatens Service Industry” looks at the financial services industry, which is the most sensitive and of the great essential in every economy....
2 Pages (500 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us