MGT Week 3 DB SA Case Study Example | Topics and Well Written Essays - 250 words - 1

MGT Week 3 DB SA - Case Study Example tart a new life to live in new York at the moment hence moving to Pennsylvania will help them to save some money since they will be living with their family. Deciding to live in Pennsylvania was a good decision irrespective of the fact that it will have an emotional impact on one of them. However, being financially stable greatly outweighs a negative emotional impact thus deeming it a good decision to move back to Pennsylvania. Many people use rational when making hard or simple decisions. Scholars have further dissected the rational people use in decision making to the use of positive illusions and bias availability. This is where one makes a decision based on the bias they have given the decision depending on the consequences they stipulate. For example, in the case study when the person was selecting a service operator he/she depended on the information they had derived from others thus creating a bias that the product was good. This is usually works for many people but should not be used when making serious decisions since the information from which one creates a bias might be totally

How Government Actions Improves Market Outcomes Assignment

How Government Actions Improves Market Outcomes - Assignment Example Such measures included quantitative easing characterized by debt-for-bond swap plan with an objective of keeping domestic markets afloat, among others. Notably though was an increase in margin financing of stock purchases that fuelled an extraordinary increase in equity prices. Following stabilization of equity prices, the government embarked on contractionary measures aimed at ceasing government direct intervention so that the market may adjust to internal market forces, and eventually sustain itself. As pointed out by Frankel, while it appears that the apparent market failure resulted from misguided government intervention in the market, the cause may as well be the unpremeditated plans and subsequently implementation by the China Securities Regulatory Commission to limit the amount that brokerages could put into stock trading. The resulting increase in margin requirements gave rise to a state where economic instruments grew weaker, resulting in the resent crush of the Chinese stock market. The measures undertaken by the Chinese government, even though they seem to have been catastrophic rather than beneficial, were in no way intended to compromise or to further cripple the economy. Measures such as quantitative easing have been proven quite pragmatic in resuscitating downward spiraling economies around the world. However, currency devaluation superficially appears to provide relief to currencies whenever implemented, boosting their respective performance internationally.