Besides Macroeconomics, the other basic way to view economics is the “Microeconomic” view. This view concerns itself with the particulars of a specific segment of the population or a specific industry within the larger population of good and service providers. More importantly, from a financial standpoint microeconomics concerns itself with the distribution of products, income, goods and … Continue reading Microeconomics: A General Overview
Category: Investing and Financial Planning
Welcome to our comprehensive guide on investing money! If you’re looking for advice, tips, and help on how to invest your hard-earned money, you’ve come to the right place. Our goal is to provide you with practical insights and actionable strategies to help you navigate the world of investing and achieve your financial goals. Whether you’re a seasoned investor or just starting out, our pages on investing cover everything from stocks and bonds to mutual funds and real estate, so you can make better informed decisions.
Macroeconomics: A General Overview
Finance is based on economics. Therefore, to properly understand financial markets and their behavior one must first understand economics. Economics at its core is concerned with the production, distribution, trade and consumption of goods and services. To put this in human terms we can say that economics is the science that arises out of the interplay between limited … Continue reading Macroeconomics: A General Overview
Opportunity Cost – Basic Economics Concept
Should I go to work today? Should I go to college after high school? Should the government spend money on a new weapon system? These are decisions that are made everyday; however, what is the cost of our decisions? What is the cost of going to work, or the decision not to go to work? … Continue reading Opportunity Cost – Basic Economics Concept
What is Economics?
Economics is the study of how a society uses its resources to satisfy its wants and needs. What does that mean? Consider the following three scenes. First, a household works together to do the chores. They cut wood for the fire place, cook meals, go to the store to buy food, and rent movies at … Continue reading What is Economics?
The Business of Importing and Exporting
Businesses who want to sell their products or services worldwide are involved in the export business; those who want to buy products and services from countries outside of the United States are in the import business. They may choose to do this in any number of ways. They can use an export trading house in … Continue reading The Business of Importing and Exporting
International Free Trade Negotiations
In international trade, all countries strive to reach a contradictory goal. They would like to foster their exports in order to maximize income and profits for their business and industry and earn foreign exchange to strengthen their economy, while at the same time impose restrictions and tariffs to prevent other countries from exporting to them. … Continue reading International Free Trade Negotiations
Understanding Financial Risk Management
Financial risk management, as opposed to “Risk Management” is used to protect against financial market exposures. Traditional risk management tries to protect against loss of physical assets through loss control programs and commercial insurance products. Firms that hold financial assets or liabilities are likely to try to protect themselves against loss in the value of the … Continue reading Understanding Financial Risk Management
Developing Countries and Markets
A developing country is defined as a country with low incomes, undeveloped infrastructures and low standards of living compared to averages in developed nations, normally defined by the members of the OECD- Organization of Economic Growth and Development. Fully developed economies have economic systems that support employment, and institutional and physical infrastructures and commerce within … Continue reading Developing Countries and Markets
Understanding the Commodities Markets
In the mid 1800s, Midwest farmers would meet in the middle of Chicago and try to sell the crops that they just harvested to willing buyers. As time went by, some would try to sell these crops before the crops were actually in. The commodities futures market evolved when these farmers began to commit to … Continue reading Understanding the Commodities Markets
Understanding Oil Markets
The oil market is affected by many economic and political factors, many of which have been in the news recently because of the focus on increased prices at the gas pumps. The basic laws of supply and demand have a strong fundamental impact on the price of crude oil, which eventually dictates the price of other, … Continue reading Understanding Oil Markets
An Introduction to Foreign Exchange
You know that “foreign exchange” exists, and you have an inkling of what the newspapers are talking about when they mention it, but you really don’t understand the basics of what foreign exchange is and how it works. Here, therefore, is a short “primer” on the basics of foreign exchange. The term “foreign exchange” basically … Continue reading An Introduction to Foreign Exchange
Financial Futures
Foreign exchange futures, commodity futures and financial futures all operate similarly. A trader or investor wants to buy or sell a fixed amount of a currency, a commodity or a financial instrument for acceptance or delivery on a fixed, future date. This is done to avoid any adverse movements in the exchange rate of the … Continue reading Financial Futures
