Essay on comparison of the Eras of Banking

Comparison of the Eras of Banking
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Table of Contents
 Introduction 3
 Banking during the time of Prophet 3
 Analytical comparison 5
 Conclusion 8
 Bibliography 8

Introduction
Banking is an integral part of every economy in the current world and it controls the finances and financial status of every citizen in any country in the world. It is an institution that has undergone various economic changes and currently mobile banking is the order of the day. Banking began during the prophetic times, there are examples such as the story of Judas who was viewed to be Jesus’ treasurer, and kept all the financial records for Jesus, he later betrayed Jesus since he was the only one exposed to finances and valued money so much among all the disciples. There also existed stories about the Annaniah and his wife Saffira who stole from the treasury of the church and Zacchaeus the tax collector who was a corrupt official but later changed his ways for the better. It is believed that the types of currencies used during the prophetic times were gold and silver and any financial transactions were done in terms of gold and silver (Nandy, 2010). The book of revelation reveals the coming the beast where people will have a mark on their face and a chip on their hands that will be connected to their bank accounts and without the chip people will not be able to survive.
Banking during the time of Prophet
Going back down the history to the Old Testament, there are trade treaties between King Solomon and the neighbors of Israel and that led to the growth of Israel and expansion of the territorial boundaries of Israel. Solomon provides the perfect example of an evidence of banking services during the prophetic times, King Solomon had a robust banking services where he used to store and trade his gold and silver for the timber and all the supplies he needed for his palace.

In order for a territory such as Israel under the kingship of King Solomon to grow as strong as it was during the prophetic times, there was the need to exist a well-formed financial foundations for the purchase of all equipment of war such as chariots, swords, spears, shields among others. The existence of trade relationships with its nations also required a well-formed financial services to be able to promote and perpetuate any trade bonds, the bible clearly reports that king Solomon is the richest of all the kings in Israel and no one has ever risen in the history of kings of Israel as rich as king Solomon. Banking during the old times have various differences and similarities with banking performed at the current times (Kahf & Khan, 1992). Access of banking services during the two eras show some clear differences in the service, banking during the prophetic times was reserved for the rich and it is only the rich and mostly the kings that could get access to such services and carry out trade between the nations (El-Gamal, 2000). In the present times, the banking services is very accessible and it a big number of population can access services even the young population provided they have identification cards.
Banking was also available and accessible at specific geographical locations such as specific major towns and cities, in the current times. In the current times, banking has been made accessible to almost every town whether big or small and there have been recent developments to make the services to be available at the doorstep of every citizen. Availability of banking has gone through a series of stages during the history of mankind and technology enhances the banking services and to promote the rate of transfer of funds (El-Gamal, 2000).

Analytical comparison
The mode of transaction in the banking has also taken a lot of steps from the times of the prophets. During the days of the prophets, banking was on the goods only; this exists in the cases of storage gold and silver in the palaces of the kings. Such offered the means through which borrowing and lending could be done between territories and offered a fast way of transacting businesses between nations. On the contrary, in the current times, the baking services entail bot goods and services, there exist various varieties of service provisions such as the asset financing among others (Venardos, 2011). The charge of interest on the on the loans borrowed has also underwent certain changes between the prophetic times and the current times, this is because the old days had no ideas charged on the loans borrowed. In the current times there are various interest rates charged on the loans and the rates depend on the periods of repayments and the amounts of the loans borrowed. The concept of banking that existed during those times is discussed further below.
It can be seen that during the time of prophet, there were not actual banks but the purpose of providing the finance to the people was fulfilled by various means. It is seen that in the Islamic countries like Istanbul, Iraq and Iran, there were merchants who used to provide the financing facilities and they carried the exchange of currency. They were known as “sarrafs. This was observed shortly after the time of Prophet and this “sarrafs” serves to be the bases of the banking facilities that came into existence in the later period. Since the base of the currency was either gold or silver during those times, they were mostly exchanged against each other for the commodities and products as well as for providing finance for various purposes. During the time of sarraf, the term of sukk was used which refers to a piece of paper which is specifically marked by a particular sarraf. The depositor who gets this sukk, can make his payments to the merchants in the form of sukk by mentioning the amount of gold or silver coins on it. The merchant can then avail his amount from the sarraf regarding the amount that he has to take from the depositor. This was essential as they considered that the metal coins were very heavy to be taken everywhere and carrying them while purchasing products or other valuable things from the markets was a hectic task. It is the use of this specific piece of paper called as “sukk” which brings the concept of the origin of check that we use today (Kahf & Khan, 1992).
Thus, it can be observed that providing finance was also executed by specific merchants during those times which is now carried out by banks. So, the financial concept that was prevalent during those times was more personal and the policies that were formed and agreed upon depended on the merchant and the person who was safeguarding his finance or borrowing money from the merchant. It is also seen that the merchants used to provide the finance which sometimes led to the exploitation of the people due to their ignorance or inadequate knowledge of the accounts and finance. So, it was also seen that the people were exploited many times during those days by the merchants in the form of monthly debts or interests that the peasant workers, farmers and other sections of the society who had borrowed money from the merchants. This is actually not prevalent today, as compared to the standardized rules and policies that are followed by the specific banks across the globe. There is a consideration of each and every aspect which is required for the person who takes finance from the banks and the bank facilitates him with various opportunities and period through which one can repay the loan and clear the debts (Kuran, 1986). However, in the ancient times that we have discussed which is right after the time of the Prophets, there was the phrase in the Quran which stated that “It is one of the greatest sin to die in a state of debt and providing no assets to pay it off”. This concept created a sense of responsibility among the people where they would consider the repayment of their debts as a matter of importance and they would not betray the person from whom they have taken the money or any financial help in the form of valuable assets like farms, shops, etc. Thus, due to this religious compliance of the financing term which is related to the payment of debts (Hamid, Craig, & Clarke, 1993).
The number of banking service providers have also increased exponentially to the level that ownership of a banking institution has been made easier since it only require few individuals with good and strong financial bases to come to a consortium and open a banking institution. This differs with the situations in the prophetic periods when financial institutions were only owned by the kings of the nations and the ownership was transferred down the lineage of the family tree. The banking services is today offered as a form of business and any banking institution provides incentives in order to lure and gain the most number of customers (Hamid, Craig, & Clarke, 1993). This is opposed to the banking services offered during the olden days where banking was not a form of business but only a reserve of the rich. It is seen that the roots of the purpose of banking institutions can be derived from the time after the Prophet when people use to provide financial services to the needed and ensured that they calculated the interest as well as the debt that they had to get back from the ones that they have provided the finance. They used specific things like “sukk” that we have discussed above which is the earliest form of check ever used by the humans in providing finance and exchanging assets.

Conclusion
Thus, it can be observed that the concept of providing finance was also prevalent during the times of the Prophet. Though it was not termed under the frame work of banks or other such formal institutions, the merchants and other financial providers fulfilled the purpose of safeguarding the money and providing finance to the people whenever they needed it. It is then that the concept of banking came into existence. Banking provides means by which various individuals get financial assistance and provide help in the times of difficult economic times, there is therefore the need to understand the operations of the banks. Thus, we have carried the analytical comparison of the banking facilities that existed during the time of prophet and since then Banking is bound to undergo changes in the coming times and going with the prophecies of the old times, they are expected to conform to the ever-changing technology and lead to the fulfillment of the prophecies.

Bibliography
El-Gamal, M. A. (2000). A basic guide to contemporary Islamic banking and finance (Vol. 1). Houston: : Rice University.
Hamid, S., Craig, R., & Clarke, F. (1993). Religion: a confounding cultural element in the international harmonization of accounting?. . Abacus, 29(2),, 131-148.
Kahf, M., & Khan, T. (1992). Principles of Islamic financing. research paper,.
Kuran, T. (1986). The economic system in contemporary Islamic thought: Interpretation and assessment. . International Journal of Middle East Studies, 18(02), , 135-164.
Nandy, D. (2010). Banking Sector Reforms in India and Performance Evaluation of Commercial Banks. Universal-Publishers.
Venardos, A. M. (2011). Islamic Banking and Finance in South-East Asia: Its Development & Future (Vol. 6). . World Scientific.

Literature Review on Financial Assets During Breakdown of Stock Market throughout History

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Table of Contents
1. Introduction 3
2. Literature Review 5
3. Critique 8
4. Conclusion 10
5. References 11

Wall Street Crash of 1929; Black Monday, 1987 and the stock market downturn of 2002

Introduction
Stock market plays a very crucial role in the development of financial balance in an economy. The U.S. stock market has been contributing to the world economy and the global stock market. It has been regulating shares, bonds and financial liquidity. Wall Street in the U.S., serves as the financial center of the world, located in New York.
There was a major breakdown of the stock market at Wall Street in the U.S. Though the stock market had crashed in the U.S., it had adverse effects on the economies of other countries as well. The economy of different countries had to experience a slowdown. The clash of the stock market was one of the most destructive in the financial history of the U.S. The stocks had crashed on October 24, 1929, on Thursday. The highest fall of the stock was observed on the following Monday and it continued till the next day.
The beginning of the crisis and breakdown started on Thursday, on 24th October 1929, when the investors started getting their money back through the selling of the stocks. This Thursday is therefore, commonly known as “Black Thursday”. However, the situation of crisis was felt in the next week on Monday, when the prices of the stock had fallen so much that all the investor’s money had gone and there were no choices of financial returns for the investors. They gathered in large numbers and crowded the Wall-Street in order to protest and get their money back. Thus, as per most of the researchers, the Wall-Street crash was mainly due to the selling of large number stocks by stock holders. This generated a financial crisis in the market and as a result of it, the stock market had a break down. There were adverse effects on the crude oil prices in UAE and they had to suffer huge losses due to selling of oil at low rates. Researchers, economic scholars and experts identified many other reasons.
Following the Wall-Street crash of 1929, there was another market crash in 1987, which is known as “The Crash of 1987”. It was witnessed on 19th October, 1987. In this crash, the market declined by about 23% which is the highest one day falling of the market till now. The breaking of the market was of about 509 points. This day, is therefore known as “Black Monday” which is observed as “Black Tuesday” in New Zealand and Australia considering their time zone difference. Such a large fall in the stock market in one day, was not witnessed ever before. Crude prices in UAE fell considerably, by about 50%, due to the financial collapsing of OPEC in 1986. This led to increase in financial insecurity and uncertainty among the people who had invested in the stock markets. This was mainly caused due to the sudden outburst of investors who were ready to invest in any product irrespective of its product value and reliability. Many irresponsible companies and businesses got their revenues from the people in the form of critical investments where investors were very attracted by advertising and promotions. This also considerably reduced the oil prices in UAE for the international global market.
Following the crash of 1987, was the Dotcom crash in 2000 to 2002, which resulted in the downturn of the stock market in 2002. The western countries were greatly influenced by its effects. This down turn resulted from many activities that were started in 2000. These activities include excessive investment in the companies by investors. In this condition, there were huge financial flows from the people and companies as it was the decade that observed the spread of the internet till 1998. Many companies developed bonds and investments way beyond their control and as a result of this, they were not able to bear the load of continuously increasing cash flow in the market with the success of the internet industry. In this crash or downturn, there was a reduction of about 78% in few of the stocks, like the NASDAQ composite whose value reduced from 5046.86 to 1114.11. The large scale adaption and use of the internet as well as huge expectations from the small companies resulted in the stock market downturn of 2002.

Literature Review
Many researchers and economic scholars have developed various reasons for the decline observed in the index to the lowest value of 110 in October. It was a sign of the great depression that was going to follow it. It was therefore, necessary to hold the stock index by avoiding selling of stocks and purchasing more and more stocks from the market. But, this was not carried out and a sudden selling of stocks by the investors resulted in the crashing of the Wall-Street stock market (White, 1990).
Researchers also claim that the negative effects of the war took time to get intensify. It gradually got intensified by 1929, as a result of which, there was a huge economic crisis in the market and people were becoming poorer day by day. As a result of this, they decided to get their money through the selling of the stocks. Many people and investors got their investment amount with credits back. This bankrupted the companies, due to unavailability of financial sources to return to investors (Aldcroft, 1977).
There were extensive losses suffered by western countries due to the First World War. As a result of this, they were striving hard to sustain their economy and regain the financial power that they used to have. The United States had a huge debt at the end of the First World War. They had used a major portion of their revenue in developing warfare equipment and ammunition that were required for this war (Thomas & Morgan-Witts, 2014).
However, they failed to identify the potential of these economic and financial resources in developing their economy. Due to this, during the phase of 1919 to 1929, large number of credits were provided to the people. Due to this, war stricken people took the advantage of getting credits without having the capacity to repay it. This resulted in bankrupting of the government departments that provided finance and funds to the people of U.S. the unavailability of resources and finance in the banking sector resulted in the development of the crash in the stock market (Sornette, Johansen, & Bouchaud, 1996).
This crash had a huge influence over all the countries across the globe, but the intensities differ from one country to another, due to the difference in dependence of these countries on U.S. economy. During this time, there was British control over parts of UAE and Dubai. The crashing of the stock market led to great depression in UK. This led to the falling of their revenues and as a result, their rule in Dubai was adversely affected. Dubai and UAE’s oil and petroleum industry had to suffer owing to the decrease in the purchasing power of different countries due to the Great Depression (Kindleberger, 1986).There was an increase in supply owing to the production of oil from the reserves and unavailability of better technology to store it. This led to the reduction in the prices of oil and caused huge losses to oil and petroleum companies in UAE. A major portion of these economies depended on oil and petroleum industry and hence, UAE’s economy faced a slowdown during this time (Bennett, 2008).
The early Wall-Street crash in 1929, was followed by a similar crash in 1987, which is called as “The Crash of 1987”. It was believed by the researchers that the crash began in Hong Kong, and it slowly spreaded to European countries. The fall in the market value resulted in depreciation of oil and petroleum products and this adversely affected UAE’s economy. This weakened the global markets in the east and it gradually came towards the United States (Sornette, Johansen, & Bouchaud, 1996).
The major impact of the crash was observed in Australia and New Zealand where there was a fall down of about 32% to 40 % in few markets owing to the downturn. It occurred even during the existence of “U.S. Securities and Exchange Commission”, which was established for maintaining the global balance among the economies to avoid the repetition of the Wall-Street crash of 1929 (Toporowski, 1993).
The development of a new economy was the best solution used by companies for frequent mergers and acquisitions with the other companies. Due to this, they continuously stayed in news and the investors considered it as a very viable chance to invest in these companies. According to researchers, this was due to the interests of the people in the companies that got huge publicity and had advertisements all over the market. People did not consider the credibility and background of the company and the founders of the company. People did not even analyze the marketing and financial policies offered by the companies. It was this negligence and ignorance of the investors which was taken advantage of by the companies and they developed schemes through merging with other companies.
After the crash of 1987, the market took years to regain its value and liquidity that was damaged and lost due to the crash. However, due to the terrorist attacks in the U.S. on 9th September, 2001, the stock market was facing a major threat of a slowdown. The case worsened after March 2002 and this led to a considerable decline of the stock market and the value of the stocks depreciated rapidly. This phenomenon is known as ”Stock Market Downturn of 2002”. The base of the downturn was formed during 2000, when there were many firms which were established for overcoming the economic crisis developed during the crash of 1987 (Thomas & Morgan-Witts, 2014). During this phase, New York Stock Exchange was observed to fall by 685 points from the initial day closing. Investors were rapidly investing in any plan without considering its details and checking the reliability and validity of the company. This resulted in considerable increase in the dotcom business, and led to the stock market downturn in 2002. UAE had adverse effects on its live stock value and the prices of gold, oil and petroleum had slashed after a long time (GULFBUSINESS.COM, 2014).

These are the three crashes or stock market downturns which have been observed in the last century. There are many scientists, economists and scholars who have critically evaluated these three crisis among the people. They have also developed the losses incurred to the economies in the process.
Their studies, theories and its evaluation have been discussed in the literature review section above and it has been critically analyzed in the critique section below.
Critique
The critical analysis and evaluation of the crashes of the Stock involves understanding of the economic terms, financial assets and studying of the market. The strategies that were developed by companies and stock exchange firms to attract and bring a large number of investors has to be evaluated. This also involves considering the pattern of increase and decrease of the stock market points in the global market (Sornette, Johansen, & Bouchaud, 1996).
On critically evaluating the reasons, it can be stated that in order to recover from the effects of the First World War, America promoted industrialization and promised a return to the people through the stock market. There was a huge flow of uneducated and unexperienced investors who started investing in the companies and the stock market. This provided extensive opportunities and chances of executing a fraudulent and attractive scheme to lure such investors and get maximum money from them. This served to be the basis of the great depression as the companies who got large investments from such people got bankrupted due to large losses in its operation or internal conflicts occurring in the management (Thomas & Morgan-Witts, 2014). As a result of this, they were not able to pay the promised money to investors. As a result of this, the manipulators and companies who are expert in utilizing the resources sold the shares at very high prices to investors for fulfilling their desire of investing in the stock market.

The effects of the Wall Street crash, in 1929 were observed to accelerate the Great economic Depression, which was observed in the next few years. Due to the Wall-Street crash, more than half of the banks of America had been bankrupted and more than 30% of the working population were unemployed. It observes that the impact of the First World War did not come up immediately, but it developed many economic crisis in the following decade. The Great Depression followed Wall-Street Crash of 1929 and this left a striking image threatening economic situations in UAE and other countries in the Middle-east and Far East (Beattie, 2012).
The crash of 1987 also was on the same line as observed in the Wall-Street Crash of 1929. There was a tremendous boom in the American economy after the Second World War. The economy had raised itself to an extremely high level. There were many companies who were ready to absorb the payment from the people. However, owing to the prosperity and economic boost in the western countries, there were many false advertising campaigns which were carried to get financial investments from the people in the name of development (Toporowski, 1993).
The crash of 1987, had to be the last crash as per market analysts. But, this was not the case observed. There was a similar downturn in the stock market in 2002. There were many external factors for this downturn in the stock market. The investors wanted to explore new ideas and take them to a bigger level where they can maximize their profit from the new plans and concepts. This involved developing of the internet at a tremendously fast rate, an increase in the networking of the companies, new possibilities of mergers and acquisitions for the company in the market (Arshanapalli & Doukas, 1993).

This served as the basis of excessive plans developed by the companies to accommodate large investments from the economically sound investors in the impactful nations like U.S., UAE, Canada, UK, Europe and lastly China. The economic boosts in these countries led to the advancement in technology and this increased the number of investors in these areas as they considered it as a very trustworthy source that would generate desired economic returns in the market.
On critically evaluating the condition, it could be stated that this crashes existed due to excessive investing of the investors in companies which were not providing quality products and services, but had attractive and appealing advertising over the media. The companies were not capable to absorb such a huge cash flow and as a result they got bankrupted where the money of the people was drained. This kind of fraudulent practices led to the development of such a crash in the stock market across the globe (Barlevy & Veronesi, 2003).
Conclusion
It can be concluded that the crashing of the stock market and gradually, the economy of the countries was due to the mismanagement of the investment by the companies as well as by investors. It had a huge impact on the crude prices in UAE and there were influences on gold prices as well as on the live stock exchanges in UAE.
Thus, it could be concluded that there has to be a development of an appropriate framework to control the measures of the companies in absorbing finance from the market had to be developed. This would continuously monitor the stock market policies and practices of the companies and would save the investors from severe losses and exploitation through fraud and unethical malpractices. Strict measures have to be taken against any small case of violation of the policies set by them.

References
Aldcroft, D. H. (1977). From Versailles to Wall Street, 1919-1929. University of California Press.
Arshanapalli, B., & Doukas, J. (1993). International stock market linkages: Evidence from the pre-and post-October 1987 period. . Journal of Banking & Finance, 193-208.
Barlevy, G., & Veronesi, P. (2003). Rational panics and stock market crashes. Journal of Economic Theory, 110(2),, 234-263.
Beattie, A. (2012). Market Crashes: The Great Depression (1929). Retrieved from http://www.investopedia.com: http://www.investopedia.com/features/crashes/crashes5.asp
Bennett, L. (2008). DUBAI. New Holland Publishers.
GULFBUSINESS.COM. (2014, January 2014). The World s Worst Stock Market Crashes. Retrieved from http://gulfbusiness.com: http://gulfbusiness.com/articles/insights/the-worlds-worst-stock-market-crashes/
Kindleberger, C. P. (1986). The World in Depression, 1929-1939. University of California Press.
Sornette, D., Johansen, A., & Bouchaud, J. P. (1996). Stock market crashes, precursors and replicas. . Journal de Physique I, 167-175.
Thomas, G., & Morgan-Witts, M. (2014). The Day the Bubble Burst: The Social History of the Wall Street Crash of 1929. . Open Road Media.
Toporowski, J. (1993). The Economics of Financial Markets and the 1987 Crash. .
White, E. N. (1990). The Stock Market Boom and Crash of 1929 Revisited. The Journal of Economic Perspectives, 67-83.

Essay on Investment in International Business

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Investment in International Business:
An international business refers to the one which involves many transactions across more than two countries across the globe. It involves carrying trade and maintaining international relations across the different national boundaries. It has a huge scope of investment due to the globalization of all the industries and operations. Investment in an international business refers to holding of finance through different commodities or other forms that have the potential to generate multiple revenues on a long run from the invested market. As per the researchers, with the advancement in technology and other new methods of production and distribution, the scope of investing in international business throughout the world would be increasing. The researchers have always argued among the different locations that tend to be the ideal place for carrying international business and making huge investments in them (Ajami, Cool, Goddard, & Khambata, 2014).
There are various factors to be considered while carrying an investment in an international business and these factors are:
Type of investment to be made
It includes the medium through which investments would be made in international business and they may be in the form of foreign direct investments, joint ventures, licensing, franchising and financial Contracts. It is a very important factor while evaluating any international location for making investments. There are many theories that consider the rules, policies and legal framework regarding the type of investment that is to be selected for carrying the business (Morgan & Katsikeas, 1997).
Source of generating revenues
The different sources of generating income have to be considered while developing a firm ground on the basis of which investment is to be made. These sources are in the form of direct cash flows, shares, debentures, mutual bonds, memorandum of understanding, revenue from the people and large number of incentives given by the government for investing in specific fields like the Solar, Tidal and other such sources with unexplored potential (Ajami, Cool, Goddard, & Khambata, 2014).
Trading Policy and policy of privatizing the business:
The condition of trade and international relations differ from one country to another and hence, special consideration has to be made on the trading policy of each and every country that you invest in. There is a huge scope of investment when the trading policies and legal framework are in the favor of the business (Ajami, Cool, Goddard, & Khambata, 2014).
Investment in China
There has been a tremendous shift in the investment that China has grossed from the international market. It tends to be the fastest growing economy of the world. Hence, there are many investment opportunities in investing in a business in China. It has witnessed many ups and downs in its economy while absorbing huge amount from a large number of international businesses (Wall, 2013). It is very important to consider the feasibility of making an investment decision of about $100 million in either China or India. There are many factors that are to be considered for developing the decision of making investment in China and they have been discussed below.
Advantages
• The fast growing economy of China provides many opportunities and unlocks new doors for the potential investments (Wall, 2013).
• China has a high consumption per capita then all the other emerging countries.
• Huge potential and exposure in the manufacturing industry that has been open to all the countries of the world (Lu, Liu, Wright, & Filatotchev, 2014).
• It has been stated by the research scholars and business analysts that China would be having a good growth in its economy which would be increasing by almost 7% to 9% every year (Kim, 2012).
• There has been a consistent increase in the FDI that has been developed in China.
• There are huge possibilities of growth and expansion due to the involvements of a large number of people in the manufacturing sector of their market.
Disadvantages
• In the beginning of 2016, there has been a tremendous fall of about 12% in the stock market of China and this has affected its relation with the investing countries that have stocked their financial resources in China (Rapoza, You’re Investing In China All Wrong, 2016).
• There has been a continuous decrease in the GDP growth of China. It involves failing of the state structure to boost its economy (Lu, Liu, Wright, & Filatotchev, 2014).
• There are hardly any legal laws and framework to protect the rights of the investors and guarantee them with a specific amount of return on investment.
• Excessive government control and hence, there are not huge and large scale investing stakeholders, investors and sponsors (Kim, 2012).
• Improper surveillance and control over the quality of labor and its conditions (Lu, Liu, Wright, & Filatotchev, 2014).
• Despite of the marginal growth shown in the private sector of the Chinese market, there are no signs of growth in the state government where a large number of investors are eager to invest in the same and they have been suffering a big loss.
• There is a huge pressure on the Chinese economy due to the falling economy since last few years.
Investment in India
India is one of the biggest market for international business after Japan and China. It has a splurging population of 1.25 billion that have the potential to absorb different investments through a large number of industries that are being developed for imbibing development in the fields of architecture, infrastructure, technology, automobile, banking, education and business studies, manufacturing related products and services (Dzever & Jaussaud, 2016).

Advantages
• There has been a considerable increase in the growth of the Indian economy through its gold, stocks and real estate market. This trend has been shown in the below figure:

(Dzever & Jaussaud, 2016)
• It has a huge potential in terms of the youth population available in it as it has the highest youth population in the world, leaving behind even China.
• Tremendous growth in its GDP that has been consistently growing since last few years. It is projected to grow up to 85 in 2016 (Rapoza, 2015).
• Large number of reforms have been made that provide many incentives and develop favorable conditions for investing in Indian market and its products as well as services.
• The return of investment rates of investing in India is high and this creates a number of opportunities for different kind of businesses to develop a firm grip in the global market (Rapoza, 2015).
Disadvantages
• There are different risks involved while investing in India and few of them are due to the large diversity that it offers (Deva, 2012).
• The lack in the functioning of the state government in ordinance with the union government. This is the reason for hindrance in the development across the country.
• There is a decreasing value of Indian Rupee against the USD. This largely affects the global level credibility of India. The decline in the values of INR per 1 USD is shown in the figure below:

(TECHBUSY.ORG, 2011)
Risk considerations
There are many risks that have to be considered while establishing an investment in any of the two countries, that is, India or China. These risks have been mentioned below:
• Internal risks
• Strategic
• Operational
• Political
• Technological
• Environmental
• Economic
• Social
• Security risk
• External
• Internal stock market
• Threat to terrorism (Covin & Miller, 2014).
All the above mentioned factors have been faced by both the countries and they are to be evaluated while starting any business.
Developing a solution regarding the investment decision:
There are many factors that are contributing to the decision of investing the sum of $100 million in an international business from among China and India
Growth in GDP:
The tremendous and consistent growth in the GDP of India’s economy as compared to a continuous decline in the China’s GDP as shown makes India more favorable to generate potential returns of the investments that would be made in it.

Figure: GDP growth in China for 2004-2014 taken from (Dzever & Jaussaud, 2016)

Figure: GDP growth in India for 2004-2014 taken from (Dzever & Jaussaud, 2016)
The other factors that involve a large number of reforms that are taking place in India carve a path for the development of any kind of investment that would be made across any business in India. Hence, though the returns of investing in both the countries are almost similar on the long run, it is more favorable to make an investment of $100million in India on the basis of risk considerations carried for both of them.

References
Ajami, R., Cool, K., Goddard, J. G., & Khambata, D. M. (2014). International business: Theory and practice. . Routledge.
Covin, J. G., & Miller, D. (2014). International entrepreneurial orientation: conceptual considerations, research themes, measurement issues, and future research directions. . Entrepreneurship Theory and Practice, 38(1), , 11-44.
Deva, S. (2012). Socially responsible business in India: Has the elephant finally woken up to the tunes of international trends?. . Common Law World Review, 41(4), , 299-321.
Dzever, S., & Jaussaud, J. (2016). China and India: Economic Performance and Business Strategies of Firms in the Mid 1990s. . Springer.
Kim, K. (2012, December 12). Investing in China? 8 Things That’ll Cause You Misery. Retrieved from http://www.forbes.com: http://www.forbes.com/sites/kennethkim/2015/12/12/investing-in-china-8-things-thatll-cause-you-misery/#133124f45c6d
Lu, J., Liu, X., Wright, M., & Filatotchev, I. (2014). International experience and FDI location choices of Chinese firms: The moderating effects of home country government support and host country institutions. . Journal of International Business Studies, , 428-449.
Morgan, R. E., & Katsikeas, C. (1997). Theories of international trade, foreign direct investment and firm internationalization: a critique. Wales: Cardiff Business School,.
Rapoza, K. (2015, March 5). Five Reasons To Invest In India. Retrieved from http://www.forbes.com: http://www.forbes.com/sites/kenrapoza/2015/03/05/five-reasons-to-invest-in-india/#3fcccd061b29
Rapoza, K. (2016, January 17). You’re Investing In China All Wrong. Retrieved March 05, 2016, from http://www.forbes.com: http://www.forbes.com/sites/kenrapoza/2016/01/17/youre-investing-in-china-all-wrong/#3a60e1c110ae
TECHBUSY.ORG. (2011, September 22). Indian Rupee (INR) vs United States Dollar (USD). Retrieved from http://www.techbusy.org: http://www.techbusy.org/indian-rupee-inr-vs-united-states-dollar-usd/
Wall, E. (2013, March 18). Investing in China: the pros and cons. Retrieved March 05, 2016, from http://www.telegraph.com: http://www.telegraph.com/finance/personalfinance/investing/9937056/Investing-in-China-the-pros-and-cons.html

Essay on Justification of Investing in IT projects

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Justification of investment in IT projects
There is a significant connection between the investments that are made in IT projects and the profitability that it achieves through the projects. It has been stated by few research scholars that IT projects help in reducing the operational expenses of the company. It has been proved using data that is obtained from above 400 firms across the globe. There is a positive impact of the investments that is made in IT projects on the overall productivity and profitability that is generated in a firm. This has been possible due to the reduction in the costs and increase in the revenue generation through the use of IT system (Mithas, Tafti, Bardhan, & Goh, 2012). It is very well stated that, “Information Technology and Business are becoming inextricably interwoven”.
IT serves to be one of the core factors that is responsible for development of strategic mechanisms within an organization. It plays an important role in the development of a business strategy. IT projects are the ones that are developed for maximize the capabilities that are existing in the business and also help in developing new opportunities that have the potential of taking the business to great heights (Drnevich & Croson, 2013). There is one more quote that states that, “The way you handle Information Technology in your company is going to determine the success of your business”.
Describe whether you think most projects should include a business case before the project sponsors officially approve the project.
A business case is one form of description of the policy, plans and strategies that are related to the implementation of a new decision in the company as seen in the case of JWD. It helps the main elements that tend to be the project sponsors in the project like the stakeholders, board of directors, important decision makers as well as the public who make large investments in the project. It provides them with an extensive framework that would provide them with a complete guidance regarding making of decision that is related to the approval of project and investing in it.

References
Drnevich, P. L., & Croson, D. C. (2013). Information Technology and Business-Level Strategy: Toward an Integrated Theoretical Perspective. . Mis Quarterly, 37(2), , 483-509.
Mithas, S., Tafti, A. R., Bardhan, I., & Goh, J. M. (2012). Information technology and firm profitability: mechanisms and empirical evidence. . Mis Quarterly, 205-224.

Report on Nazi Gold in Swiss Banks

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NAZI GOLD IN SWISS BANKS
The term Nazi Gold can be referred as the gold that has been mentioned across the history to be transferred allegedly by the Nazi government to the European banks which constituted a major part of the Swiss banks. It consisted of gold that was collected by looting the empires and other kingdoms that were conquered and the people living there were victimized. The gold that was collected from the kingdom was meant to provide financial resources for developing arms, ammunition and to accommodate huge army by the Nazi.
The presence of the gold and other financial resources that were kept as a liability in these banks have been questioned since many years. There have been many researches carried out on the same. It includes the development of a financial statement of the European banks by the other leading international banking bodies and institutions across the globe.
It was mainly due to the exertion of Holocaust that took place in Germany and was carried by the Nazi army. It has been a great source of the monetary sources that were looted by the Nazis. It consisted of carrying large scale killings of the Jews that were present in Germany. It has also been established that there was about $260 million of looted gold found in Germany. It came from monetary as well as non-monetary sources. The source of these gold was not clearly specified and at the same time, it was also observed that a large amount of gold was already sent out of Germany in the banks of other countries. There was a huge amount of gold collected and looted from the kingdoms that were conquered during the Second World War was sent in the form of gold and other assets to the countries like Portugal, Sweden and Switzerland (NAZI GOLD, 1997). There was a huge amount of gold discovered by the American troops in Berlin where it stored in hoards. The value of the gold that was discovered by the American troops was found to be around $238 million in 1945 (YOUTUBE.COM, 2015).

The looting of the gold and other assets from the captured kingdoms was a major source of finance in developing the German war equipments and manpower that was required for maintaining a strong German Army that would be sufficient to protect Germany and at the same time achieve victory over the enemies. It has been observed by a famous research scholar Slany through her extended studies that the looting of the gold was not unknown to the banks present in Germany. In fact, the Reichsbank that was Germany’s Central bank was knowing about this activity and they were also a supportive element in the activity. It has been stated that there was very limited gold available with the Reichsbank as a major portion of it was already utilized for the war. So, there were very few high end and potential financial resources that could fund the arms and manpower that was required in the war (Slany, 1997).
There have been many accusations placed on the Swiss banks regarding the processing of the money that has been invested in it right since the Nazi times when there was a huge amount of gold that was looted from the kingdoms conquered transferred to these banks. There were many claims that have been accomplished and demanded by the “Independent Committee of Eminent Persons”. It has been known through the “Volcker Commission” that was established for the same. There were many reparation claims developed by the tribunals and the private sections of the German society from the Swiss banks. There has been serious inconsideration of their appeal as the results of the investigation are not clear and they are very time consuming. There have been many challenging legal issues that have been developed while resolving the incidences of Holocaust that has been developed against the Swiss banks. The moral of the families that have been suffering was found to be at the disposal end and they had a real crisis situation (Alford, 2002). It has been stated as a serious consequences of the failure of the bank to answer the Holocaust claims.
There were many unethical businesses carried during the Second World War. It was observed that the nations where the financial resources were looted and the monetary resources were sent away by the German Army consist of the Nazi had a huge impact on the development of slavery in these nations due to insufficient resources to sustain themselves in the market. There has been huge amount of financial assets invested in the Swiss banks especially during the slave labor that was prevalent due to the effects of the Second World War in the victimized countries (Eizenstat, 2004). The victims have been seeking compensation from the Swiss banks, yet their queries have not been answered by the management of these banks.
The legacies and the conditions that were developed during the Holocaust have been emphasized since the last few years. It has been a matter of international importance and there are many international bodies coming ahead to support and investigate the financial resources that was looted from the kingdoms conquered during the Nazi period. It involves developing a deep analysis of the actual accounts in which the looted amount has been deposited in the Swiss banks. The effects of the World War II have been redeveloped and analyzed to help the upliftment of the victimized nations and a considerable amount of contribution is the gold and other financial assets that was looted from these countries by the Nazis (Ludi, 2004).
Thus, it can be observed that imperfect justice was imparted and an exploitation of the victimized countries during the Second World War was carried by the Nazi army and government of Germany that was controlled by the Nazis.

References
Alford, R. P. (2002). The Claims Resolution Tribunal and Holocaust Claims Against Swiss Banks. Berkeley Journal of International Law , 1-32.
Eizenstat, S. (2004). Imperfect Justice: Looted Assets, Slave Labor, and the Unfinished Business of World War II. PublicAffairs.
Ludi, R. (2004). Waging War on Wartime Memory: Recent Swiss Debates on the Legacies of the Holocaust and the Nazi Era. Jewish Social Studies, 116-152 .
(1997). NAZI GOLD. London: The Holocaust Educational Trust.
Slany, W. Z. (1997). U.S. and Allied Efforts To Recover and Restore Gold and Other Assets Stolen or Hidden by Germany During World War II. U.S. Holocaust Memorial Museum, 1-260.
YOUTUBE.COM. (2015, July 21). USA: SWISS BANK OFFICIAL ADMITS THAT HIS COUNTRY SHIPPED NAZI GOLD. Retrieved from https://www.youtube.com/: https://www.youtube.com/watch?v=8Dc0D-nmK8c