Essay: Global Finance
Which financial concept will have the most impact 10 years from now? Why?
The financial concept that will have the most impact 10 years from now is that of global finance since technology is advancing and this implies that countries will continuously have to trend globally. All firms will require more finances to be able to compete and out way their competitors. To be able to compete globally, firms require to expand their capital requirements implying that there will be need to borrow from more financial agencies. This eventually will lead to increased financial risks (Kose, 2006).
DQ 3: What effect culture might have on financial strategy? Research two cultures and give examples to demonstrate how the two cultures might affect a financial strategy in different ways.
Different countries have different cultures and thus different financial strategies in place. With continued technology advancement, different cultures from different countries treat this differently. The culture of the Sweden people is different from the culture of the Chinese in the way they respond to technology advances. This is because the people from Sweden easily adapt to innovations and new technologies in comparison to the Chinese. The financial strategies are developed from high capabilities, good communication skills, and high agreement levels, which are evidence in Swedish culture. On the other hand, the Chinese culture is characterized by uncertainty avoidance, paternalism leadership style, and large power distance that limit them from adapting the best financial strategies (Guo, & Li, 2009). The Chinese are also known to be low learners and ineffective in their leadership and therefore unable to make quality financial strategies.