Importance of Financial Education in Making Informed Decision on Spending: Recent Study | Chapter 2 | Emerging Issues and Development in Economics and Trade Vol. 4

The discourse of spending is important if finance is of concern. Those who save money realize the fact that wise spending leads to saving and hence investing. A household that spends unwisely can end up complaining on insufficient funds attained. Governments and organizations which spend unwisely will always cry for budget deficit. Therefore, this chapter provides a discussion on the importance of financial education (financial literacy) in making informed decision on spending. We have people in our families who always cry for insufficiency of funds. And to them they think that God has given an outright favor to some people to enjoy the lives. But we also notice that those who seem prosperous most of them are not Godly. They demonstrate a bad behavior to families, to people near them, to our kids. If their prosperity is a result of God’s blessing, we could at least realize that these people are believers.  It was from that line of thinking this study became eminent. This chapter exemplifies the use of mobile phones, food, fuels, and goodwill as among the key aspects which need to be looked at, while utilizing our money. The first part covers the introduction which reveals the definition of financial education as opposed to financial statement analyses (FSA) and or accounts information (AI). The second part reveals the importance of financial education to individuals, governments and financial institutions. The third part is the challenges for attaining financial education and examples that reveal the importance of financial education. The fourth part is the conclusion and recommendations. The chapter concludes that while income attained at any level is important, most suffrage related with insufficient income in many households is due to poor spending caused by lack of financial education. We have noted that most workers once have got a job, the first thing that one would do is ask for financial support from the bank to buy a car. Assuming that the car one has bought is at 15,000 USD, and his/her salary is 700 USD per month. The interest rate of a bank in Tanzania for instance is 19 to 20 percent. This means that you have created a grave onto yourself in the following aspects. 1) You have bought a car while your emirs work does not need you to have a car. 2)  You have created an up for and from vehicle which adds expenses to the salaries. 3) You have been asked the financial institutions to take part of the money from your very little money to its bank. What you remain with is very small amount of money. The computation will follow to mark the evidence of spending to the car for a new worker.  Hence this is a must-read book to allow the people know how to save money, when to buy a car, when and what types of vehicles you should buy while you are very junior worker, what actually you should not do while at work. 

Author (s) Details

Norman A. S. King

Department of Business and Management, Faculty of Business and Economics, University of Iringa, Tanzania.

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Economy-wide Learning: A Comparative Study of Manufacturing and Non-manufacturing Sectors in Japan | Chapter 1 | Emerging Issues and Development in Economics and Trade Vol.4

In knowledge economies, building technological capability is a continuous process and unarguably key to industrial policy development. Learning [by-doing in the industry] has been linked to a reduction in unit labor cost and overall production cost of goods and services. In this study, we comparatively studied the learning pattern of the Japanese manufacturing and service sector using industrial-leveldata. This study is perhaps the first attempt to comparatively study the productivity of the Japanese industry using the learning curve at the aggregate level. Looking back to almost 4 decade-long (19802017) of financial input-output data, we estimated the trend in technological learning using various learning models, calculated the annual progress ratios (via production function imputed in log-linear & cubic model) and revealed the dynamic technological learning across the two sectors at the aggregate level. This enabled us to identify years with good learning rates which are synonymous with costsaving across the two sectors of the economy. The results show that, while learning was restored and sustained in the services sector of the economy in the last decade, the same cannot be said about the manufacturing sector where learning (cost-saving ability) was completely lost. We conclude that (1) as typical of advance economy, Japan is now a service-oriented economy with manufacturing playing a complementary role, (2) the service sector may have benefited from advances in technologies and innovations from the manufacturing to achieve higher productivity at a lower cost.

Author(s) Details

Joseph Junior Aduba
Graduate School of Economics, Ritsumeikan University, Japan.

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The Prospect of Catastrophe Securitization in China: Recent Developments | Chapter 12 | Emerging Issues and Development in Economics and Trade Vol.4

The purpose of this paper is to prospect catastrophe securitization in China. The catastrophe security market is well developed in developed countries, but in much of Asia it is in its early stages. The reason attributed for this is the close interdependencies of corporates and insurance companies in funding their risk exposures and the lower prevalence of sophisticated risk management practices. However, things slowly started changing in Asia, especially in China, with corporate recognizing that better risk management practices have a positive affect on their financial earnings. The securitization of catastrophe risk has the potential to rapidly alter the China’s risk management landscape. Through development of the catastrophe security markets, policyholders can be protected from (re)insurer’s credit risk, (re)insurers can overcome the limitation of capacity, and investors investing capital markets can diversify their portfolios. The growth and survival of the catastrophe security market in China lies in coming up with the products to suit the diverse needs of various customers and act as a close substitute for the traditional insurance market

Author(s) Details

Jong-Hag Jang

School of Economics and Management, Chang’an University, South 2nd Rd, Xi’an 710064, China.

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Crop by-products and Residues Availability and Utilization as Feed Resources for Small Ruminant Production Systems in Khana Local Government Area, Rivers State, Nigeria | Chapter 11 | Emerging Issues and Development in Economics and Trade Vol.4

Stock exchange investment in Tanzania is growing fast, and many people of different varieties of income are participating in the purchase of shares commonly known as stock exchange. However, there is seemingly little concern on the use of financial analysis on the part of local individual investors when purchasing the shares. Hence, this chapter presents the findings of the study on financial analysis as a consideration for stock exchange investment decision making in Tanzania. The study was originally conducted for four months from July to October 2006. Perhaps it is true that knowledge is vital in all essence, hence we have amalgamated some resent knowledges to make our book more current and understandable. As it is indicated that this chapter is a study which incorporates six brokers, indeed yes but the current situation has seen an increase of brokers to 13. In that regard, we have talked to them in order to amplify this study, and all have cemented the earlier study, and had few new comments. It adopted a survey study incorporating all thirteen registered brokers in Tanzania located in Dar es Salaam. First, the introduction was given, which provided the essentials and the need for financial statements analysis as far as decisions regarding investment is concerned, after which the literature review was done. This was followed by a presentation of the role of Dares salaam stock exchange. Subsequently, the methodology of the study was given, followed by data analysis and discussion of findings. Finally, conclusions and recommendations were given. The chapter concludes that most of investors in Tanzania do not depend on the financial statements analysis of the firms when investing mainly because most of these investors have not acquired knowledge on the importance of financial statements in making decisions regarding the investment. However, big investors such as financial institutions and firms do consider financial statement analysis when investing. This calls for the people and education institution to verge the training of the students on how it is worthy understanding the use of financial information. This should e done through education provided by the people who work with Dar es salaam Stock Exchange and the affiliated institutions. Colleges must understand that purchasing of stocks and affiliated ventures are worthy and should not be considered as a mere business, it is a real business.

Author (s) Details

Norman A. S King
Department of Business Management, Faculty of Business and Economics, University of Iringa, Tanzania.

View Book: – http://bp.bookpi.org/index.php/bpi/catalog/book/159

Global Coordination: Weighted Voting | Chapter 12 | Emerging Issues and Development in Economics and Trade Vol. 3

In order to halt the depletion of global ecological capital, a number of different kinds of meetings between Governments of countries in the world has been scheduled. The need for global coordination of environmental policies has become ever more obvious, supported by more and more evidence of the running down of eco-logical capital. But there are no formal or binding arrangements in sight, as global environmental coordination suffers from high transaction costs (qualitative voting). The CO2 equivalent emissions, resulting in global warming, are driven by the un-stoppable economic expansion in the global market economy, employing mainly fossil fuel generated energy, although at the same time lifting sharply the GDP per capita of several emerging countries. Only global environmental coordination on the successful model of the World Band and the IMF (quantitative voting) can stem the rising emissions numbers and stop further environmental degradation. However, the system of weighted voting in the WB and the IMF must be reformed by reducing the excessive voting power disparities, for instance by reducing all member country votes by the cube root expression.

Author(s) Details

Jan-Erik Lane
University of Genova, Genova, Switzerland.

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Vietnam Inter-Regional Input-Output Analysis: The Bi-regional and 8-regional Cases of Vietnam | Chapter 11 | Emerging Issues and Development in Economics and Trade Vol. 3

The Leontief’s input-output system was developed to the inter-regional input-output model by Isard in 1951. The idea of the inter-regional input-output model was specified by Richardson and it is considered as an important tool in researching of regional economy. The inter-regional input-output model describes not only the relationship between sectors but also the relationship between regions based on trading flows among regions and the trading flows between regions and foreign countries. This research develops two types of inter-regional input-output tables of Vietnam: the inter-regional input-output table with two regions, and the inter-regional input-output table with eight regions.

Author(s) Details

Bui Trinh
Vietnam Development Research Institute, Association of Regional Econometrics and Environmental Studies (AREES), Vietnam.  

Duong Manh Hung
Vietnam National Account Department, General Statistics Office 6b Hoangdieu, Badinh, Hanoi, Vietnam.

Nguyen Van Huan
Vietnam Economic Institute, Vietnam Academy of Social Sciences (VASS), Vietnam.

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Managing Human Capital: How to Use Knowledge Management to Transfer Knowledge in Today’s Multi-Generational Workforce | Chapter 10 | Emerging Issues and Development in Economics and Trade Vol. 3

The purpose of this exploratory study is to examine knowledge transfer strategies within the framework of a multi-generational workforce. It is common to consider different generational perspectives in the workplace and its impact on knowledge management and transfer strategy. This research compares differences in workforce generations and examines different methods to pass knowledge cross-generationally. Companies must design knowledge transfer strategies conducive to multi-generational workforce dynamics keeping in mind the generational diversity that exists in the workplace. The present study endeavors to provide insight into this issue.

Author(s) Details

Dr. Roxanne Helm-Stevens
School of Business and Management, Azusa Pacific University, 901 East Alosta Avenue, Azusa, CA, USA.

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Analysis of Value Added Tax Effect on Firms’ Cash Flow in Various Sectors of the Emerging Economies | Chapter 09 | Emerging Issues and Development in Economics and Trade Vol. 3

Inadequate cash flow constitutes the major reason for most corporate failures worldwide. However, absence of empirical evidence on value added tax (VAT) effect on corporate cash flow in different industries means that cash flow implications are often ignored by VAT policy makers. This study examines the relationship between VAT and firms’ cash flow in various sectors of the economy within the context of an emerging economy. The study employs factor analysis to determine if there is a statistically significant difference in cash flow effect of VAT on firms among the different industry groupings in Ghana. The study used data on firms registered with the Large Tax Payer Office (LTO) of the Ghana Revenue Authority (GRA) to conduct the analysis. It was established that VAT effect on firms’ cash flow differs significantly between industry groupings, depending on the particular factor influencing the amount of VAT remittance to revenue agencies. The findings also show that governments’ decisions on the efficiency and neutrality of the VAT scheme must not only be influenced by its ability to transfer the tax burden from corporate bodies to final consumers, but also its effect on firms’ cash flow in various industries. The findings have important policy implications for policy makers in evaluating the efficiency and neutrality of different tax schemes.

Author(s) Details

Dr. Hussein Salia
Department of Accounting, Faculty of Business Administration, Heritage Christian University College, Amasaman – Accra, Ghana.

Dr. Williams Abayaawien Atuilik
Department of Accounting, Faculty of Business Administration, Heritage Christian University College, Amasaman – Accra, Ghana.

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Per Pill Price Differences in Bangladesh | Chapter 08 | Emerging Issues and Development in Economics and Trade Vol. 3

The objective of this study was to comprehend the pricing differentiation of essential drugs between the local pharmaceutical companies (LPC) and multinational pharmaceutical companies (MNC) of Bangladesh. Thirty five (35) essential drug prices were collected from a local drug directory, namely Bangladesh National Formulary 2006. The mean and standard deviation of the prices of drugs belonging to all therapeutics categories (Anti-infective drugs, Central nervous system, Respiratory system, cardiovascular system, gastrointestinal system, Endocrine system drugs, Vitamin, drugs for Skin and Analgesic/painkillers) were analyzed. Managers of two multinational companies (MNCs) named GlaxoSmithKline Bangladesh Limited Bangladesh and Sanafi Aventis Bangladesh; and three local pharmaceutical companies (LPCs) named Square Pharmaceuticals Limited, Beximco Pharmaceuticals Limited and Incepta Pharmaceuticals Limited were interviewed after data analysis. A wide range of price variations (p < 0.01) between MNC and LPC essential drug products exist. Antibiotics have higher prices than drug products belonging to other therapeutic groups. Since infectious diseases are the major cause of morbidity and mortality in Bangladesh, the government should consider bearing part of the burden of antibiotic manufacturing costs and deliver antibiotics to the market at reduced price promoting rational prescribing. Further studies are needed to delve the causes of anti-infectives high prices and to propose affordability for treating infectious diseases. This study evaluates the present situation of the pharmaceutical marketing and pricing strategies in Bangladesh in light of the status of the essential drug market. This study will be helpful to assess essential drug affordability, to keep pricing strategies appraised, to advise the drug administration of options and to arrange for appropriate levels of public healthcare.

Author(s) Details

Nishat Chowdhury
Department of Pharmaceutical Technology, Faculty of Pharmacy, University of Dhaka, Bangladesh.

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