Financial Floating Manager

Posts Tagged ‘markets’

It has been centauries since the countries of the world understood the interdependence of each on the other. The phenomena of globalization are one of the reasons of this interdependence. The countries are trading among each other through economic zones. Also the business in the stock market has gone Trans national. All the stock markets of the world make an impact on each other’s trading patterns. Thus stock exchanges are strong indicators of the international business. Another advantage, as it may be called to the business, is the difference in the labor costs in the different countries. The booming business of outsourcing is an offshoot of this concept. The outsourcing business is now moving from the business processes to the manufacturing too. The practices like interdependence of the stock exchanges and the phenomena of outsourcing are causing great concerns to the domestic companies. The impact of outsourcing on the domestic labor is drastic.

The stock exchange index is generally confined to one country. However there are some indices, which are found in many other countries of the world too. America’s Dow Jones and S&P 500 are some of the indices. Industry specific index can also be found. The Moran Stanley Biotech index is one such. They are referred to as specialty exchanges.

The NASDAQ in New York is the world’s first electronic exchange. Set up in 1971, it has approximately 3200 companies listed with it. There are several indexes in the NASDAQ with separate base numbers and for different companies listed in them. For example there is a NASDAQ 100 index. It has base number 125 and has been traded on since 1994. Then there is NASDAQ Composite where most of the companies do business.

London too is one of the business hubs of the world. The stock exchange is one of the most influential ones. The kings of international businesses have their home ground sin London and they operate their world business from there. Being one of the biggest human settlements in the United Kingdom, London has a business of over 117,000 million pounds. The London stock exchange has been in existence since 1698 when commodity trade was rampant in the country.

Nikkei 225 is the index of the Tokyo’s Stock Exchange. The markets can boast of being the technologically most advanced in Asia if not the world. Japan after the wrath of the war of 1945 has emerged out to become one of the controllers of world trade. The work culture in the country is unmatched by any country of the world. Probably this is the reason why it is has been the world business leader for a long time. Most blue-chip companies are listed on this market.

The hazards of speculative businesses are all around. The companies have created the tricks to trade out the non-productive scrip. Insider trading, for example, means floating false information in the market by those who are at the helm of affairs. The same misguides the traders. This has to be curbed by adding a deterrent to such practices.

What worse could have happened to the US economy then the 9th September 2001? Some perverted religious fanatics demolished the embodiment of the world trade. Terrorism is a threat to all the nations of the world. The human loss due to these activities cannot be condemned with words. The ruthlessness of the terror traders has an impact on each and every segment of life. The extent of these activities is extending by the day and the generally silent Europe too is feeling the cramps.

The world markets face the wrath of the terrorist activities in their faces. There is an overall loss to the business in many ways. The people suddenly fear traveling through air. The airline companies themselves are more apprehensive about continuing with their normal work. Apart from the loss in passengers, the security too has to be made very tight and the loss has to be born by the companies.

As a matter of fact, all sectors are put to a stand still due to these terror strikes. The direct effect of these is seen in the sudden drop in the markets. The stock prices do drop down and the trading comes to a stand still, however the business seldom stops and the markets show their cushioning effect by regaining the vigor. But at times the loss of even trading day can be fatal to a country’s economy.

Such attacks also incur a direct burden on the defense budget. It goes without saying that the governments do take desperate measures to minimize the losses and cover the country against the future threats. The new areas of defense research open up and thus fresh jobs are created. This brighter side of the attacks is over-shadowed by the loss of lives and panic that is created with in the country. The government, under such circumstances, looses the track of their priorities and the developmental works are sidelined. This causes damage to civic society.

The worst hit by terrorist activities is the third world countries. The terrorists make these vulnerable counties their bases and from here carry out the destructive activities. Their influence in such countries shows and threatens the developed world of their power and dominance. Thus such countries make an appropriate guinea pig. If a terrorists strike a big country or a city, the whole world knows about it. The tragedy with these countries is that their miseries are not broadcasted because of their non connectivity with the rest of the world. They are thus the breeding grounds of terrorism and worst hit areas by this destructive activity.

A joint effort by all the countries of the world, taking along the third world countries, is required to curb the growing tentacles of terrorism. Many big nations have joined hands against terrorism after major attacks in the world. They also need to include the most vulnerable victims of terrorism, the developing countries. Support to them, both economic and military, should be provided to them by the capable nations. Bodies like UN must pass resolutions and work upon them to uproot the cannibalistic practice of terrorism. Unless we don’t join our hands it would be very difficult to face these destructive forces and our economies will be victims of their activities.