Global Era Essay Example | Topics and Well Written Essays - 750 words

Global Era - Essay Example For example, the United States has improved its ties with Canada, United Kingdom and France. This has been an approach of ensuring both countries have a better hand in running their economy and other external affairs. The close ties with these countries have improved education, economy, wealth creation and an improvement concerning pollution. To begin with, the United States and United Kingdom are two countries that have been working together for a long time. Apparently, they are some of the greatest economies of the world. Therefore, working together would be a prudent approach in improving the economy of each other. As a fact, the relations between the U.S and UK are complex relations that range from shared history to corporation in the present day (Reitan 8). First, the two countries have various similarities in their religious affiliations, language and identical system. Therefore, they are prepared to work together since they have similarities. This is a better avenue of making close ties with each other as they are bound to benefit. Secondly, both UK and U.S have expatriates in each other country. Expatriates are professionals that assist in solving contentious issues that affect the two countries. Similarly, the expatriates help in strategizing on the best approaches in the two countries. For example, in this global era, both UK and U.S are adept in fighting terrorism (Reitan 9). Since the September 11 attacks, the UK and U.S have been categorical in annihilating terrorism. This has embedded trust in each other as they are fighting on the same side. Thirdly, the United States and United Kingdom have developed â€Å"special relationships† with each other concerning the â€Å"trans Atlantic alliance.† This is an approach where the UK and U.S make ties to assist the global economy. This will instil stability in the world as many countries will realize the positivity of this approach. Lastly, the relationship between the UK and U.S is considere d the most fundamental bilateral joint venture in the world. On one hand, the U.S has the American foreign policy. This policy deems to enhance the ties between the U.S and the UK. On the other hand, UK has initiated the British foreign policy. With these two policies in place, the two counties will have enhanced approaches to development (Reitan 9). Apparently, many countries have benefited from such policies as the two countries offer unparalleled help. As a fact, these two policies have helped the two countries in political alignment, commerce, finance, mutual trade corporations, technology and academics. For example, UK is the leading investor in the U.S, while the U.S is the principal investor in the UK. Mutual relationships between Canada and the United States have been in existence for over two centuries. Apparently, this led to development of the international relationships, which were considered mutually beneficial. As such, the United States has been influential in making close ties with Canada, as a country. To begin with, the two countries are economic partners. The United States is a chief economic partner to Canada. Similarly, Canada has improved its economic investments in the United States to level the trade. This has been a major step in ensuring the two countries are mutually benefiting in the global era. When Canada invests in the United States, there is a mutual benefit where there is job and wealth creation. These developments are also extended to Canada as the two countr

Equity and Debt slp Assignment Example | Topics and Well Written Essays - 750 words

Equity and Debt slp - Assignment Example How this is important can be understood from the following example. While considering a small project needing investment of $10 million, the company ABC has several alternatives beforehand. It has been forecast that the project is likely to generate operating profit of $3 million in a year excluding interest charge against debt portion of the capital. The company has two alternatives to fund the required investment. The company may choose 100% equity means all money will be provided by the shareholders. The company may issue 10 million shares to its shareholders each having a par value of $1. In another alternative, the company may choose 50% equity and 50% debt to fund the investment. Debt is available to the company at 10% interest rates to be paid annually. It will be interesting to see how the earnings per share of the company are affected in both situations. It is amply clear from the above chart that by incorporating debt to funding the project the firm has been able to enhance its earnings per share resulting into higher valuation in market place. By applying the same P/E multiple, the company’s equity valuation is higher by 66% when the project is funded with the debt equity ratio of 1:1 instead of 100% equity. But this does not mean that debt can be raised to any level to enhance the company valuation. The higher the debt means the higher interest burden on the company. This also means that if the project is not able to pay its interest costs as usually happens in severe recession then the project will be in jeopardy due to higher interest burden. This also means that project must choose an appropriate mix of debt and equity depending upon its profitability and industry norms. Considering an investment project of $150m that is capable of generating 5m and 10m of operating profits before interest payments in its first two years of operations is likely to suffer from liquidity issues when it adopts its funding