Monday, February 24, 2020
Role of Financialization in the Financial Crisis Assignment
Role of Financialization in the Financial Crisis - Assignment Example The severe turbulence that followed the financial crisis of 2007-2010 has raised concerns regarding the level at which the global financial system is ready to face critical failures. Moreover, the question of whether the financialization process, which has been promoted worldwide more than a decade, has been related to the above crisis has not been avoided. In fact, there are many indications that the specific process had a major role in the financial crisis of 2007-2010. Its potential involvement in a new crisis of such kind cannot be rejected. The current paper examines the role of the financialization process in the banking crisis of 2007-2010. Moreover, the potential relationship of the pursuit of shareholder value and the ‘new economy boom’ with the process of financialization is also explored. The examination of the literature published on the specific field has led to the assumption that the relationship between the above-mentioned events and frameworks is strong. At the next level, another issue is also discussed: the level at which investor behavior can influence corporate strategy and performance. It is proved that the involvement of shareholder value in corporate strategy and performance can be significantly influencing the corporate decisions on critical issues, as for example the strategies that the firm will follow for facing the expansion of financialization, as a global economic trend. Financialization, as a sociological and economic trend, is not a recent phenomenon. In fact, in accordance with Orhangazi (2008), three phases can be identified in the development of financialization: the first one represents the pre-1980 period during which financialization was based on a ‘long waves approach’ (Arrighi 1994 in Orhangazi 2008, p.41). In the years that followed in 1980, the financialization was related to the concept of neoliberalism (Orhangazi 2008). Recently, financialization has been related to the global financial mark ets (Orhangazi 2008). The view of Lucarelli (2011) that â€Å"financialization is related to the capitalism’ (Lucarelli, 2011, p.111) seems to be the most effective description of financialization, as a trend influencing the performance of the global financial system. On the other hand, Krippner (2011) refers to financialization as the ‘growing importance of financial activities as a source of profits in the economy’ (Krippner 2011, p.27). 2.2 The relationship between financialization, the banking crisis, the pursuit of shareholder value and the ‘new economy’ boom. As noted above, the financialization focused on the use of financial activities as the main source of profit. At the next level, financialization is an economic trend accepted and promoted globally, which means that it can affect the global financial system. The role of the financialization in the structure and the development of financial transactions worldwide has been revealed through the banking crisis of 2007-2010 (Foster, 2007). It was because of that crisis that the role of financialization for financial systems internationally has been set under consideration (United Nations, 2009). Financialization should be considered as a key cause of the appearance and the expansion of the 2007-2010 crisis, because of the following reasons: a) in the context of financialization the accumulation of profit worldwide has been related to financial activities; the exchange of money in its various forms has become a key method for achieving profit. In this way, the traditional method for gaining money, the work as physical activity has lost its value.
Friday, February 7, 2020
Aviation Memory and Cognition Research Proposal
Aviation Memory and Cognition - Research Proposal Example Similarly, the National Transportation Safety Board (NTSB) found that on June 19, 2011 two aircrafts came â€Å"within 300 feet of each other†(à ir’, 2012). Cessna 172 and ExpressJet that was carrying 53 people failed to identify a conflict regardless of the fact that they were both connected with the radio traffic control. The Federal Aviation Authority (FAA) found that the controller who was on duty on the tower had a negative history of â€Å"professional deficiencies†with countless events where he disobeyed the standard procedures checklist that has to be followed at all times (‘Air’, 2012). This research paper aims to propose an investigative study to identify the factors that give rise to near-miss events by the ATCOs and how memory losses increases the number of near-miss incidents. The primary purpose of conducting this research is to bring to light the issue of near-miss by the ATCOs and the various factors that give rise to near-miss situations. This research proposal will provide a brief literature review on the topic, methodology, research design, expected outcome of the proposed research. Nashef (2003) highlighted that the concept of near-miss in air traffic control services refers to the loss of separation between two aircrafts in the air which if not prevent would lead to mid-air collision. Therefore, a near-miss is the situation in which the two aircrafts came very close to each other but did not collide. Nashef (2003) has categorized near-miss situations in three types, namely: Type 1, Type 2 and Type 3. Type 1 near miss is one where the incident has occurred and the installed system in the aircrafts successfully detected and corrected the situation. It worked as it was planned to work and therefore, no harm was actually done. Type 2 near miss is one where the incident occurred but one or more of the installed system in the aircraft actually failed to detect the loss of
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