Discussion Board Replies
Hello, I need to reply to four discussion boards, each need 100 words. Need this done by 02-24-20. See attached discussions boards and instructions. Thanks.
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Definition: The bandwagon effect is a psychological phenomenon in which people do something just because other people are doing it regardless of their own beliefs. This is commonly observed in consumer behavior and investment activities (Chappelow, 2019).
Summary: The article entitled, “ The Bandwagon Effect” by Jim Chappelow discusses investing and financial markets can be vulnerable to the bandwagon effect because not only of the psychological and social factors occur but the prices of assets tend to rise as more people jump on the bandwagon. This creates a positive feedback and increased demand for a product. During the dotcom bubble, many tech companies emerged that had no business plans or visions but a catchy name. Despite this, these businesses attracted millions of dollars because of the bandwagon effect. Bandwagon effects can create problems in which it gives consumers an incentive to get a free ride on the information and preferences of other consumer. This can lead to information of a product being over or under produced or solely produced solely by marketers. The perfect example of this effect is consumer may purchase the item regardless if they need, want, or can afford the item (Chappelow, 2019)
Discussion: Consumers often rely on others to gather information and evaluate the quality of goods for them. They rely on their opinions in their purchasing behaviors. If consumption decisions are rational and people’s preferences are similar, then this is beneficial and useful for the company because the information appears accurate. Then it is wise for companies to follow the bandwagon’s lead and effectively outsource the cost of gathering information to someone else (Chappelow, 2019)
References
https://www.investopedia.com/terms/b/bandwagon-effect.asp
Chappelow, J. (2019). The
Bandwagon Effect. Investopedia. J. Chappelow has written hundreds of business articles
and is an independent consulting economist. He has 12 years’ experience in economic
development, research, teaching, forecasting, and consulting. He is the former managing
economist and lead editor of ITR Economics.
References
https://www.psychologytoday.com/us/blog/stronger-the-broken-places/201708/the-bandwagon- effect
The article discusses the bandwagon effect and how it was used in 19th century political
champaigns.
This article discusses why people follow the crowd and
the how companies can use it to their advantage.
Patrick Seay
BUSI 303-B07
Discussion Board 3: Currency Swaps
Definition
A currency swap is defined as “the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.” (Hill & Hult, 2020, p. 277).
Summary
In “Central Banks Are Using Blockchain to Stabilize the Global Financial System”, Roger Huang outlines the affect that blockchain and cryptocurrency have had on monetary policy, especially in the realm of international currency swaps. The article shows how the Federal Reserve has engaged in several currency swaps, including the swap of December 12, 2017 with both the Swiss National Bank and the European Central Bank. According to Huang, the United States engaged in this currency swap in order to allow both the Swiss National and European Central Banks to “fulfill domestic demand for US dollars.” (Huang, 2019). Mentioning the Federal Reserve’s decision to keep open the swap lines that were created during the global recession of 2008, the article makes the conclusion that central banks are now able to easily engage in currency swaps due to the transferability of cryptocurrencies offered through blockchain technology.
Discussion
This article directly relates to currency swaps because it thoroughly outlines how the United States has engaged in several currency swaps with foreign governments in the wake of the financial crisis of 2008. Of the foreign governments that the Federal Reserve have chosen as being trustworthy enough to engage in such transactions, they include such countries as “Brazil, Mexico, Singapore, and South Korea” (Huang, 2019). Though the headline of this article indicates a discussion of the use of blockchain by central banks, the reality is that this topic was forsaken and most of the discussion dealt with the history of the Federal Reserve engaging in currency swaps as a means to help other nations from defaulting on their debts without actually losing money in the process.
Citation
Hill, C. W. L and Hult, G. T. M. (2020) Global business today. New York, New York: McGraw-Hill Education.
Huang, R. (2019). Central banks are using blockchain to stabilize the global financial system. Retrieved from:
https://www.forbes.com/sites/rogerhuang/2019/06/23/central-banks-are-using-blockchain-to-stabilize-the-global-financial-system/#3d3873759d5e
Published by Forbes in 2019, this article provides a clear outline of the currency swaps that have occurred between the United States and foreign governments. This history is followed by the author’s explanation of how central banks are starting to make use of blockchain technology in the transferring of currencies between multiple nations.
Roh, J. (2020). South Korea, Australia to renew, expand currency swap agreement. Retrieved from:
https://www.reuters.com/article/us-southkorea-australia-currency-swap/south-korea-australia-to-renew-expand-currency-swap-agreement-idUSKBN2000EZ
This article reports on the agreement between Australia and South Korea to engage in an expanded currency swap together. In addition to this announcement, it is also reported that South Korea has also reached a three-year currency swap agreement with Malaysia.
Young-sil, Y. (2020). South Korea extends currency swap with Australia. Retrieved from:
http://www.businesskorea.co.kr/news/articleView.html?idxno=41004
This article also reports on the recent agreement reached between South Korea and Australia for an extended currency swap. A history of currency agreements between the two nations is provided, and the particulars of the expansion are given in detail.
Patrick Seay
BUSI 303-B07
Faith and Integration Forum: Question 6
Question 6: I Kings chapters 7-10 provide a wealth of insight into the concept of cross-border trade. After reading these chapters, compile a list of the nation’s King Solomon traded with, as well as, the details regarding goods and services traded. Include prices and other details, if available.
Discussion
The book of 1 Kings has much to say about the cross-border trading sanctioned by King Solomon. In chapter seven, for instance, it is written that Hiram made pots, shovels, and basins of bronze “in the clay ground between Succoth and Zarethan.” (I Kings 7:46, ESV). In addition to this, chapter nine adds that King Solomon also traded King Hiram of Tyre twenty cities in Galilee for the gold and cedar and cypress timbers that were used in the building of two houses. In fact, verse fourteen of chapter nine specifically states that the amount of gold that King Hiram traded King Solomon was 120 talents. Also in chapter nine it is recorded that both the servants of King Hiram and King Solomon traveled to Ophir and bought four hundred and twenty talents of gold, which were subsequently delivered to King Solomon. Ophir, then, must have been a hub for trading activity, for the eleventh verse of chapter ten also mentions that the same servants of King Solomon and King Hiram also acquired “almug wood and precious stones” there (1 Kings 10:11, ESV). In this year of rapid wealth accumulation, chapter ten records that King Solomon ended up receiving six hundred and sixty-six talents of gold, which is an extremely weighty amount. One interesting bit of information lies in the biblical recordings of the animals that King Solomon acquired in cross-border trade. It is recounted in the tenth chapter in verse twenty-two that King Solomon had ships bring him “gold, silver, ivory, apes, and peacocks” from Tarshish. (1 Kings 10:22, ESV). As a result of this great accumulation of assets, the Bible states that “King Solomon excelled all the kings of the earth in riches and in wisdom.” (1 Kings 10:23, ESV).
1 day ago
Paula Davis
question 3
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1. We have studied the IMF and its purpose. Write a short essay proposing adding a Biblical Worldview component to the IMF.
When I think of having a Biblical Worldview and international monetary funds I think about doing things with this money to bring people closer to God. I think about traveling internationally and spreading the word of God. This also makes me think of sending care packages international with the word of God in them. In my church we participate in ‘Operation Christmas Child’. We send shoe boxes filled with goodies to children who really need it. Sometimes we put toothbrushes, socks, soap, and other things a child may need, but we also add in God’s word. We tell the child that no matter how hard it gets, God loves them and so do we. I think we could use IMF to not only send it to children in need, but to people in need of God’s word. No matter where we are in out walks with Christ, I’m sure we could all use a reminder to go to God in prayer with our needs.
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DISCUSSION BOARD REPLIES INSTRUCTIONS
1. In Weeks 2,4,6, & 8 – Post a substantive reply to the thread of at least two classmates. A substantive reply includes at least 100 words analyzing the initial thread as well as adding to the research and concepts put forth in that thread. The goal is to create meaningful discussion. To simply restate the idea already put forth or to concur with the first reply is not adding substantial discussion. That is why it is good to do additional outside research.
All references must be annotated. Cite in APA Format