Essay Question Example | Topics and Well Written Essays - 500 words - 3

Question - Essay Example External factors are the forces that come from outside the financial industries and affect their normal operations directly or indirectly. In most cases, external factors are beyond the industries’ control. The management of financial institutions has no control over them. The factors demand a robust legal framework to regulate. External factors include demographic, political, technological the size of the industries themselves. The demographic structure is the composition and age of a population. The pupation is the primary market of the financial institutions. The age of population influences the financial services directly. The older and younger population is less productive to the financial institutions because they do not use the banking services very often. They are mainly consumers instead of investors. Some customers fail to honor their financial obligations such as timely loan repayment. The political environment has a critical role in determining the failure or success of the banking sectors. The government has direct control over the financial through central banks. The countries, the central bank, have the mandate to regulate interest rates. The government may also formulate policies that make it very challenging financial institutions to run their activities seamlessly. The state of political instability destabilizes the banking systems. Because of the advancement in technology, financial institutions face serious financial crimes ranging from money laundering to robbery of banks through technological means such as using guns to rob banks. Internal factors affecting the financial services industry are forces that emanate from within the industries themselves. The factors include industrial norms, ideologies, and management structures among others. Failure by the management to comply with the norms and ethics of the industries has a negative influence on the growth of the industry. The insider

The Impact of Oil Prices on Economies of OPEC Countries Essay

The Impact of Oil Prices on Economies of OPEC Countries - Essay Example This research paper presents exploratory study, that deals with the overall economic issues, that OPEC countries face in the world economy. The purpose of the paper was to study the overall impacts of oil on OPEC countries. This research had followed a quantitative approach, as the collection of quantitative data is essential for developing a stronger academic framework. United States, Europe, and Japan all are desperate to lessen reliance on oil for safety and ecological reasons. The ways that have been projected are dual: fuel replacement for nuclear or more competent usages of energy. Some advancement has been realized on both fronts. But the cutbacks required mitigating the dependence on oil from Iran, Venezuela, and other OPEC states are further than what can be gained in the short or medium-term. Economists developed variety of theories about the role of OPEC nations in wielding its influence on the marketplace, whether through the self-governing projects of individual associates, via actions and plans commenced by semi-autonomous alliances functioning within the huge groups, or through combined plans cuddled and carried out by the organization en bloc. It is a question, whether OPEC has ever worked effectively in the way of a typical ‘interest group’. Still, OPEC nations have limited production in approaches that are not related to the domestic dearth of oil The American shift in paradigm toward alternative fuels causes some concern in OPEC countries that can see America’s demands lessen over a period of time.