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Running Head: FINANCE
Finance
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Answer: 1
Differences in U.S. and Japanese Management and Negotiation Styles
Each country has its different culture and language that create differences in the way of
negotiation. Moreover, due to the differences in culture, language, values, customs, and ethnicity
of the people management and negotiation style have differentness. Cultural differences in
different countries influence virtual communication, decision making and communication styles
of people that are causing of differences in management and negotiation style (Liu, Friedman &
Hong, 2012). The differences related to culture mainly has influence on the negotiation style
rather than management style because language and communication way is mostly depends on
culture.
In recent times, different management styles are used by the manager so selection of style
is depend on person and not majorly affected by the cultural different. In the US, a multiethnic
culture, so that negotiations are carried out by almost everybody on a daily basis. American
people negotiation have been conducted means American focused on searching the ways to
conduct effective negotiations for achieve maximum outcome of negotiation (Lee, Brett & Park,
2012). In addition, Japan is a highly homogeneous nation their people have generally resolved
problems or issues by mutual concessions rather than negotiation.
Japanese behaves as a family members means very friendly with others with the other
person or party, but the American people only focuses on their benefits and business relationship
while communicate and negotiate with other person or party. The differences between the
negotiation styles of the US and Japan effects actual negotiation of a product or service as
negotiator needs to behave friendly with the Japanese person or party while negotiator needs to
behave only professional way from the American party and people (Eckard Marchiori, Carraher
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& Stiles, 2014). In the American party or people, negotiator only needs to discuss only business
related or processional aspects not their personal aspects.
Answer: 2
Changes in U.S. Current Account over the Last Ten Years
On the basis of the U.S. Bureau of Economic Analysis, the current account in the US is
reported. The below graph indicates the changes in the US current accounts over the last ten
years during the 2005 to 2015 that indicates in 2006, it is lower and in 2014, it is higher level. In
the first quarter of 2015, the US recorded a current account deficit of 113337 USD Million. In
between the 2005 to2015, the low record of the US current accounts of -216063 USD Million in
the third quarter of 2006 (TRADING ECONOMICS, 2015). Until 1960 to 2015, in the United
States, the current account averaged of -45074.10 USD Million.
(Source: TRADING ECONOMICS, 2015)
On the basis of the above chart, it can be identified that the economy condition of the US
and the internal market impacts on the country’s overall current account. In during the 20072008, global financial crisis happened that impacted on the US current account as the above chart
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indicates the decline situation of current account during the 2006 to 2008. In addition, after the
2008, the global and the US economy has been improved and achieved positive growth rate that
contributed to enhanced the country’s current account that is shown in the above graph. In
addition, after the 2010, the US economic growth rate is around 2.5-3.5% that helped the US
current account to reach at high level over the last five years (TRADING ECONOMICS, 2015).
So, the global and country economy factors have influenced changes in the US current account.
Answer: 3
Analyze the Changes in the U.S. Financial Account
The US current account is the sum of the balance of trade (exports minus imports of
goods and services), net income from interest and dividend, and net transfer payment such as
foreign aid. It indicates the international trade flows have been is related to the US current
account balance. The gap between the US exports and imports decides the country’s balance of
payments with the rest of the world, while other components of current accounts such as crossborder wage payments or earnings streams on foreign assets also played role minor way. The
global financial crisis in the 2006-2008 declined the earnings on international assets and
liabilities that impacts on the US current balance of trade. The global financial crisis declined the
prices of property and assets as well as impacted on the imports and exports of all the countries
that also impacted on the US current account during this time.
In addition, the below table indicates the net value to the gross earnings flows to and
from the US. The below table indicates the improvement in the US financial account this year
(2015) in comparison to the previous year (2014). That indicates the balance of trade, exports,
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imports, GDP growth rate, external debt, FDI and capital flow all factors have influenced the US
current account.
United States Trade
This year
Previous year
Balance of Trade
-40879
-50566
Exports
189905
188001
Imports
230784
238567
Current Account
-113337
-103138
Current Account to GDP
-2.40%
-2.40%
External Debt
-6915258
-6129420
Terms of Trade
98.97
97.12
Foreign Direct
Investment
33804
42670
Capital Flows
106628
-95243
(Source: TRADING ECONOMICS, 2015)
Answer: 4
Principles of Islamic Banking
The Islamic Finance Accounting Standard (IFAS) is described the principles or standards
of the Islamic Banking or Islamic Finance. The Islamic Finance Accounting Standard (IFAS)
“Ijarah” was issued by the Institute of Chartered Accounts of Pakistan and its notification SRO
431 (i)/2007. Islamic banking rules and regulation based on his rules related to Islam or Muslim,
so that the Islamic banking system or Islamic banks are known as Musharakah and Mudarabah.
Umar bin Abdul Aziz rules related to Islam such as the principles of sharia and Islamic forbids
simply lending out money at interest are considered in Islamic banking. On the basis of the Islam
rules, Islamic banking had introduced concepts of banking such as profit sharing, safekeeping,
joint venture, cost plus, and leasing (Venardos, 2010). On the basis of these concepts, it will be
possible of Islamic banks to allocate the financial resources appropriately.
In recent times, the Islamic banking is spreading rapidly through many Arab and Muslim
countries Tunisia, Libya, Saudi Arabia, Kuwait, the United Arab Emirates, Oman and Morocco.
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In addition, the Islamic banks have around 300 institutions in about 51 countries in the
worldwide that indicates the Islamic Banking is succeeding in non-Arabic countries also. Several
non-Arabic countries such as Malaysian, Turkey, and British markets also have active markets in
terms of bonds issuance and the embracing of Islamic banks that indicates the possibilities of
Islamic banking succeeding in non-Arabic countries (Kettell, 2010). In the Britain market,
Islamic banking is already succeeding, but in the US and China it is possibilities of Islamic
banking succeeding due to less Arabic or Muslim population in these countries.
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References
Eckard Marchiori, B., E. Carraher, C., & Stiles, K. (2014). Understanding and overcoming
business etiquette differences in Japan, Turkey, and the United States of America.
Journal of Technology Management in China, 9(3), 274-288.
Kettell, B. (2010). Case Studies in Islamic Banking and Finance. USA: John Wiley & Sons.
Lee, S., Brett, J., & Park, J. H. (2012). East Asians’ social heterogeneity: differences in norms
among Chinese, Japanese, and Korean negotiators. Negotiation Journal, 28(4), 429-452.
Liu, W., Friedman, R., & Hong, Y. Y. (2012). Culture and accountability in negotiation:
Recognizing the importance of in-group relations. Organizational Behavior and Human
Decision Processes, 117(1), 221-234.
TRADING ECONOMICS. (2015). United States Current Account 1960-2015. Retrieved from:
http://www.tradingeconomics.com/united-states/current-account
Venardos, A.M. (2010). Current Issues in Islamic Banking and Finance: Resilience and Stability
