International Finance - Science topic

Interested to attend online

Yes, if they are sustained and well managed.

In my opinion, insurance of the distinct links in the supply chain of micro and small manufacturing enterprises can be a better option than a guarantee scheme. Insurance provides a more comprehensive coverage for potential risks and losses, whereas guarantee schemes may have limitations and exclusions. Additionally, insurance can help to mitigate the financial impact of unexpected events, such as natural disasters or market fluctuations. However, it ultimately depends on the specific needs and circumstances of each enterprise.

I hope to figure out any access to same data.

Syed Azher Mehdi Thank you very much i suggest also this Data base it is very useful for FDI and Multinational companies by sector , mother company and affiliates by countries and region ( bilateral and aggregate ) by International Trade Centre.

for Middle east data this portal is very useful

Dear Dr László Vértesy, I think algorithm based trading ( share, foreign exchange and commodity) has huge scope for AI. Already we are into it. Initially these will be premium services..... meaning will help rich becoming richer ànd poor becoming poorer. Warm regards Yoganandan G

Thank you dear researchers for your contribution.

Dear Sanel Halilbegovic ,

I already studied before the book you suggested me. I am looking for some other source of information aside that one. Up until now I still didn't find a solution, it you're interested I'll let you know if I do.

With regards.

Thanks

Valuation effects depend on inflation, exchange rates and liquidity (on how tightly held the asset is).Different financial markets have different levels of liquidity.

It's around 42 per cent in average currently. More Dax than M-Dax. Quote me if you need a reference.

I think IMF BPM6 is more in line with definition of asset and liability in accounting. An inflow should be a liability to the host country From the perspective of creditor/investor who is entitled to a return while outflow of investment is an asset.

This is an interesting phenomenon. I hope by now (2020), the situation has much improved.

SNL Financial (S&P Global Market Intelligence) would also be a good alternative.

One way of getting about validating the data and calculations is to go to the definition of each variable - what they include and how they add, subtract, multiply or divide. Whether it is for a bank or industrial firms, a negative number for RoA is possible when the net income is negative. Asset values are either positive or zero, where a zero asset value with a positive net income is a fairly meaningless number. Technically, it is infinite when a positive number is divided by zero. In business terms, this is probably the "holy grail" (in jest of course) for managers where they earn something out of nothing.

I tend not to rely on database calculations when there are raw data that are available. Provided the raw data are presented in a consistent manner, I would prefer to show them and show how the results of the calculations are derived from the raw data.  

Well, the right question should be, whether those two aspects are in opposition indeed. You need some solid theory justifying the supremacy of long-term oriented investments over short-term investments, but I guess you will not succeed. There is always conflict between return and risk; long-term investments shall bringer higher returns to compensate increased risk. The investment decision is influenced by risk attitude of managers (those risk-averse will probably tend to prefer short-termism view). However, the stakeholders in company (investors, creditors, etc.) may have also impact on the horizon of investmens. Some may prefer longer period with higher returns (accepting higher risk), other may require better liquidity and thus shorter investments with lower returns and lower risk. Consequently, frequent interim reporting may be a transmitter balancing agency costs and investment horizon of the entity's stakeholders. Whether there is conflict or concord between agency problem and managerial short-termism under frequent interim reporting will differ across companies and entity-specific determinants shall be examined to detect the relation.    

Most countries, especially developing countries fear free float generally because of their relatively low level of productivity, meaning that the terms of trade is steeped against them. More so, even countries with high level of productivity and sound fundamental macreoeconomy may still intervene with market forces, due largely to technical and psychological factors (animal spirit), that can significant disparity between real exchange rate and it's intrinsic value, vis a vis other currency. Countries often opt for managed or dirty float in order to maintain their exchange rate at the desired level among other things. One major disadvantage is that dirty float enables policy makers to play the Ostrich. It might also scare trading partners away, making the domestic economy to suffer. 

One controversial statement comes from Warren Mosler: "An interbank market serves no public purpose" (p. 103) from the attached publication. Mosler is one of the founders of Modern Monetary Theory, but not an academic - don't be fooled by the plain language, he knows quite a lot about actual monetary operations (reserve accounting).

Dear Prof. Manzaranes and others,

                                                               Few data points should not matter whether economically or statistically even if markets are incomplete. You can refer to Mallick (2015), Mallick, Hamburger, Mallick (2016) on www.researchgate.net/Soumitra K Mallick site.

Soumitra K Mallick

for

Soumitra K Mallick, Nick Hamburger, Sandipan Mallick

You use lags of export variable

You control inflation because inflation is related to cash-flow

Because of the normalization you get rid off the size: effect Larger countries (in terms of GDP or population) receive higher capital inflows. By looking at relative variables, you can focus on other determinants (long run growth potential, availability of an educated labor force or whatever).

The other issue is that capital flows might be nonstationary. By dividing through GDP, you will probably produce a more stationary variable.

include net amount,or apply interpolation and find an approx missing amount

Also possibly consider a flipped classroom approach.

Thanks Karen.

The paper attached discusses the effects of dollarization on Ecuador`s banking system, and the role these effects played in forcing Ecuador`s January-2000 decision fully to dollarize its economy.

as to method to reduce it there are essentially two sets of instruments: those reducing spending (quite unpopular with voters and civil service workers) and those increasing revenues.

Increasing revenues might be reached by taxing residents (individual and businesses and taxing income, value added or assets....) or non residents (import taxes). Also a more efficient way to collect taxes reducing tax elusion and evasion is a classic deficit-reducing instrument.

Reducing spending might be done by reducing cost of public procurement, selling assets (businesses, real estate,... natural resouces concession,...) reducing welfare service to population (free health care, free education, subsidied pensions...)

Unfortunately I am not aware of such indicators. But would be interested to know and compare those with the South Asian countries' indicators.

For starters, by using the simple-minded phrase "a table," you seem not to grasp the breadth, depth, complexity, and scope of the question you're asking. There are more than 200 countries in the world. Even within a single country, "excise duties" and "customs duties tax rates" are likely to vary according to the good in question and, in some cases, by the quantity of that good. So, OF COURSE, any authoritative listing is going to be HUGE. What else would you expect?

You've asked a hugely complex question. Answering it is going to take a LOT of time and effort. There are no shortcuts. No one who takes the time to compile such a database is going to make it available for download for free. Would you?

Good grief, man.

Be cautious - the link above states that Governments that already apply full accrual accounting standards and apply accounting standards that are broadly consistent with IPSAS requirements includes Canada. We do not apply full accrual accounting in Canada, although we do follow our own standard similar to that.

We have a body called the Financial Reporting and Assurance Standards of Canada, and within that a body called The Public Sector Accounting Board (PSAB). It  was created to serve the public interest by establishing accounting standards for the public sector. PSAB also provides guidance for financial and other performance information reported by the public sector.

The Accounting Standards Oversight Council (AcSOC) oversees the activities of PSAB and ensures they follow their rigorous due process. AcSOC appoints PSAB members and provides input on strategy and priorities. AcSOC also assesses and reports to the public on the performance of PSAB.

Moving Canada to a full accrual accounting basis (much as the Auditor General of Canada would love it) is fraught with many difficulties. Perhaps one of our Australian collagues can talk to the difficulties they experienced in experiementing with full accrual accounting. Canada operates on a modified cash management basis in its public sector to ensure that the cherished principle of "every dollar spent on the public's behalf is duly examined and voted on in the house of commons by elected representatives"

First, adopt IFRS, and after, develop and learn about international practices. IFRS is a new language. To talk using this language, you have to practice.

Input costs, typically proxied by the manufacturing wage are important for export supply functions. Have a look at Abbott & De Vita (2002) in Applied Economics, 34, 1025-1032. This paper unpacks the theory behind your question based on Riedel (1988)  modelling approach (see Economic Journal, 98, 138-48). I hope you find this useful.

Greetings.

I am attaching a link to understand the challenges in FAO.

In my opinion Indian Accounting and Finance education is another major challenge that we need to address to make India a perfect destination. We need professional approach to FAO.

Regards

US Dollar

For short term causal relationships , the best method is the Granger Causality Test. 

For Long term equilibrium relationship, the  best method is VAR . But first you need to run  unit root tests in order to check on the performing conditions. 

Dear Shairazi, before we look at the popularity of the product, we have to look at the components of the community in those two countries. Are they the same. About 1 million of of the population in Malaysia work as gorvernment servants. And they are provided with home and vehicle and computer financing. So this could lead to the low demand of profit and loss sharing financing.

Dear Ekow Yamoah. One way of evaluating financial reporting quality is by adapting value relevance methodology. For example Ohlson (1995) looks at the association between market value of firm and book value of assets plus earnings.

Dear Angus,

                      I cannot tell you specifically about housing but I can tell you that if you are looking for an understanding of Ricardian Rent Theory which affects the housing market so much you can take a look at my paper on Econometric Society Conferences on my Rg page and also on www.citations.springer.com/item?doi=10.1007/PL00004119 where I have provided the factorisation necessary for valuing networks using the opportunity cost of rent. I guess you can reverse the process and the calculation. I hope it helps. Just as a theoretical argument David Ricardo also did not value rent in terms of Real Estate perse but in terms of Commerce or Corn. SKM QC

You can take a look at the first chapter essentially of our joint research at

planningcommission.nic.in./reports/sereport/ser/scoiwel.pdf especially Chapter 1 which had been mainly put together by Prof. Anjan Chakraborty of Calcutta University for a good discussion on Financial Deepening measures. SKM

No good can be seen for Greece over  the short run and in the midterm...

Hi!

Interest rate swaps are commonly used to try to lower the interest charges payed by the relevant state. But if the anticipation of the managing team is wrong (for example the general level of interest rates rise instead of dropping) the results may be worse. You have just in this case to undertake a new swap to invert your position, but you may loose some basis points.Swaptions may be also at stake, and many others specific derivative instruments that you will find on the OTC market with a counterparty risk.

Research has little to do with population growth, however, it is definitely positively related with economic growth. High income countries of West Europe, Japan, and the USA are some of the examples of this phenomenon. Economic growth encourages research, fostering technological development  that in turn increases labor productivity, which eventually triggers further economic growth. Yes, economic growth and technological development complement each other. 

who knows  whether there is updated data for elasticities? 

Doomsday explanation:

In simple terms it's a bubble. And it will burst at some point, that will be a black day. There are no assets around the world or money mass that can accommodate the capital flow when it will happen. Until that day, many people make nice money by investing in them, however, they need to reinvest there, as there are no other assets able to replace them. So they have nice "derivatives" as financial assets in their balance sheet, and, as leverage is highly common, they have real debt on the other side.

God help us all.

Moderate explanation:

Capitals are pushed always towards high returns. As consumption growth is minimal, regular investments provide little returns. So capitals are now "stored" in "financial assets" that can be inflated because of high demand. As financial assets can be created without limit, as long as there is a demand, they will have a value.

At the same time, the QE and LTRO are pushing towards cheap capitals, and there are little if any high return/high liquidity/ low risk tangible assets investments available. So QE is feeding the "financial assets" growth.

As consumption is expected to grow, and tangible assets will begin to generate higher returns, the capitals will start flowing towards them and the "refuge" will slowly be emptied.

Optimistic explanation

"Derivatives" are the real economy, they feed the people, they generate the wealth and bright future we all expect and deserve. They are a new invention that only a select few can possibly understand, so anyone criticizing them has no idea what they are talking about.

Pick your favorite...

Check the following:

- http://www.pwc.com/gx/en/audit-services/publications/capital-markets-2025.jhtml

- http://www.indiatechonline.com/special-feature.php?id=132

- http://greaterpacificcapital.com/india-and-chinas-growing-equity/

Dear Mark,

I entirely agree with you. The problem will become acute as soon as hot money evaporates. That's best described in the Minkovsky space how suddenly "strong" trends break and crashes follow when liquidity disappears. We have seen a harbinger already. On January 15 EURCHF crashed in the matter of a few minutes leaving a lot to think what were HFT funds doing then, actually why they disappeared from the market like the Chinese Wall in a Copperfield's trick? Prepare for the worst, the best will take care of itself. Quite recent developments on DJIA show that when the market is purposefully left by big hands to the public for a sentiment test, the index goes down quite fast. People do not give trust to the present uptrend which began from the lows of 2009. Is it supported by some crutches? I am of the opinion that we may have some new legislative initiative disallowing large leveraging when things start looking very nasty and provided there is someone who can imagine even the worst possible meltdowns underway. After all, what do you think about reducing the financial risk by onetime forced change of leveraging rules applicable to all uncovered open positions? The public would cheer to the idea and hail the saviors. I think that financial engineering tools will be considered sooner than later. Catastrophies deferred like deferred payment.

Regards

Paul     

Hello!

Do you have in mind the Working Paper No. 04-06,

The Chaotic Attractor of Foreign Direct Investment - Why China? A Panel Data Analysis, Frank S.T. Hsiao and Mei-chu W. Hsiao, May 2004,

am I right?

There is also a study entitled:

The CEEC as FDI Attractors - A Menace to the EU Periphery? Galego, Aurora; Vieira, Carlos; Vieira, Isabel, 2004.

and

A Manual for Policy Analysis, by Ganeshan Wignaraja, 2002 – 320 pages, Series: Routledge Studies in Development Economics.

In The Chaotic Attractor of Foreign Direct Investment - Why China? A Panel Data Analysis, China is considered a "strange attractor". In fact, there are two categories of "attractors": (1) major FDI destinations such as China, USA, the "big four" in the EU etc. as well as (2) FDI determinants as "attractors".

International organizations such as UNCTAD, World Bank and IMF consider

FDI attractors=variables as follows: natural resource intensity, size and growth potential of the host market, labour cost, human capital, economic stability, trade openness, income level, corporate tax rates, the quality of institutions, rate of return on FDI, "round tripping" etc.

Dynamical systems are moving from an equilibrium point to another, along with the evolution of own "attractors", new technologies, new competitors, that is why both categories of "attractors" (destinations and determinants) are changing.

Please consult also the UNCTAD statistics:

I think it is important to map out FDI flows to different major FDI hosts from a double perspective: that of competitors for FDI and that of FDI determinants and their evolution in time.

Best,

Monica

I completely agree Technology innovation has changed the ways of our life

For the US check http://lopucki.law.ucla.edu/.

This is complementary to what Prof. Piero has discussed above.

(1) The estimated coefficients of the squared independent variables should be interpreted as marginal effects. Another version of Threshold regression.

(2) I would prefer the xtabond2 version of the system GMM approach because it has some advantages like the control of cross-sectional dependence (Roodman, 2009ab).

References

Roodman, D., (2009a). “A Note on the Theme of Too Many Instruments”,

Oxford Bulletin of Economics and Statistics, 71(1), pp. 135-158.

Roodman, D., (2009b). “How to do xtabond2: An introduction to

difference and system GMM in Stata”, Stata Journal, 9(1), pp. 86-136.

Well, there is a lot of techniqual issues that could be solved. The main problem might be that those bonds are not tradeable at the secondary market, since they are similar to equity and not debt, and in case of default, they are second ranked.

I am rather doubtful if VOC approach (Hall and Soskice type) has anything concrete to analyse global financialization. I will explain in the subsequent post that VOC approach has a serious theory defect that prevents it analyse and examine globalization phenomenon.

Financialization has been a big topic for Regulationists since 1980's, for they considered finacialization as successor to Fordist regime of accumulation.  They have many books and papers on this theme.

It will be helpful and informative for you to read a review paper like van der Zwan's  

STATE OF THE ART: Making sense of financialization. Socio-Economic Review (2014) 12: 99–129. (see the link below)

It contains major survey on three major approaches: accumulation approach, share value approach and everyday life approach.  

Another thought. Don't assume that Cuba will follow the experience of other countries in this regard. Don't assume that the Cuban people are naive and that the country will be so vulnerable. Cuba has a well-developed public health infrastructure with plenty of well-trained, smart people and a population that is literate and engaged. The Cuban government is also unlikely to open the gates abruptly to investment and development it sees as contrary to the national interest. Small-scale private food services (essentially, fast food, Cuban style) was one of the first economic reforms introduced a while back and is a way for families to earn in their neighborhood. Cuba could well go down a very different track, esp. compared to SE Asia.

Forward and current spot rates are linked due to the covered interest paritiy condition. Given interest rates at home and abroad, and the current spot rate, the forward rate will adjust to fulfill covered interest parity. Arbitrage is no longer profitable in this case. Since all variables are known in period t, covered interest parity should hold instantaneously. Empirical evidence suggests that the covered interest parity condition holds even if very short time data is considered.  

Also you can see this article:The Influence of Foreign Direct Investment on

Corporate-Governance Practices: a Conceptual Framework

I'm sure you know that information asymmetry is related to corporate governance. You have two choices

1. you can conduct exploratory research where you you develop questionnaire relating to the issue(s) you like to investigate. You should also understand that in the advance countries there are excellent researches on corporate governance.

Thus, you can choose to study a specific issue relating to the market you are studying. It will be very difficult for me  to suggest a precise issue for you because I have no idea about the market you are conducting you research. However, with your experience you can see peculiar issues relating to your research area.

2. You can also conduct confirmatory study in this case you replicate similar issue from the existing literature. You will need to modify the questionnaire according to your local need. 

There are many models suggested by previous literature that would serve you well. All about hedging, financial contagion are remnants of information asymmetry. Thus, kindly check the European's Basel 1,2,3 . These regulations were developed  in order to deal with recklessness and unethical dealings in the financial markets. 

Apologies for late reply ..... its too busy over here.

From a perspective of History of Economic Thought, see Robinson, Joan (1938). The Concept of Hoarding

Hi,

the Kakwani index was designed to measure tax progressivity.

It is the difference between the Gini index before and after the intervention you want to measure.

Here is the original reference:

Kakwani, Nanak C. (March 1977). "Measurement of Tax Progressivity: An International Comparison". The Economic Journal 87 (345): 71–80. doi:10.2307/2231833

   

Thanks so much for your responses and should any one come across how to deal with endogeneity, it will be appreciated too. I tend to think that the consequences we arrive at by some of these methods could also be inclusive of other factors other than Corporate governance codes.

Best

Erick

ISSUE: Claessen et al. model

The abstract of that paper tells us that "this paper the extent and effect of foreign presence in domestic banking markets." J. Banking & Finance, 25 (2001), 891. reading through the paper, it appear the second part is missing: "effect of foreign presence on domestic banking markets"---was not reported.

PERFORMANCE COMPARISON NOT EFFECT MEASUREMENT: The article talks about performance comparison on the basis of accounting ratio comparison. This is not the same as measuring the effect of foreign banks having on that of domestic banks. In order to capture the effect of foreign banks on domestic banks, two periods must be examine: (i) performance of domestic banks prior to foreign banks entry, and (ii) performance of domestic banks after the entry of foreign banks. The study appears to be large: 7,900 banks from 80 countries for a period of 7 years (1988 - 1995 "inclusive"). In these 7 years, the effect measurement could have been measured if, say, 1988 - 1995 (2 years---as an initial period where the performance of foreign banks are recorded) then year 1990 through 1990 as comparison of the effect of foreign banks on domestic banks. This is not done----there is a problem here because at 1998, there are already foreign banks present---a means to control for that part must be design.

EFFECT MEASUREMENT: This is not the same as performance comparison. This part is missing from the article. In order to measure the effect of foreign banks on the performance of domestic banks in the banking industry, a separate effect measurement (not performance comparison) must be done separately. As a possible test candidate, suppose we measure the differences in performance from year to year, this allows us at least try to use Poisson two-counts.

Z = (R₁ - R₂) / sqrt [(R₁ / t₁) + (R₂ / t₂)]

R₁ = N₁ / t₁

R₂ = N₂ / t₂

... where N1 and N2 equals to the observed counts at t1 and t2. One can define effect as +1 and non-effect = 0.

For comparison of the performance, we now have two groups of data: (i) domestic banks before and after entry of foreign banks; (ii) domestic and foreign banks performance after foreign bank entry.

Hi Andreas,

In my understanding the dependent variables in model 5-8 have been already the average of industry-adjusted measures of operating performance over the 5-year post-issue period (p. 473).  Jain & Kini's approach followed the papers of Healy et al (1992) etc (p.472), but I do not know if there are other papers using their (5-8) models. Hope this helps. 

GDP in US dollars (for a country that is not the USA) is simply GDP in local currency divided by the exchange rate of the local currency to the US dollar.

GDP in interntional dollars is GDP in local currency divided by the Purchsing Power Parity (PPP) exchnage rate instead of by the market exchange rate.

Thus for example if the contry's GDP is 100 billions Local Currency and the market exchnage rates is: 

1 USD = 5 Local Currency

While the PPP exchnage rate is:

1 International Dollar = 4 Local Currency

The GDP is US dollars will be 20 billions and the GDP in International Dollars will be 25 billions.    

Also the price level of the country in the example relative to the USA will 80% (4/5).

Thus it is obvious that in order to calculate the GDP in local currency from GDP in Interntional Dollars you must know the PPP exchange rate (which cannot be calculated by the inflation rate).

The data on PPP exchange rates and realtive price levels are published by the International Comparison Program (ICP) of the World Bank (see the link below).

More on the PPP calculations you can find in section 3 of my attached artilce.

The liquidity and the real sector performance are definitely endogenous as they are in essence jointly determined. There are several ways to solve this problem. The answer to your question would depend on the nature of the data (what is the unit of observation, frequency, is it panel or time series, one country or cross country?).

I suggest you look into Finance and Growth literature for the appropriate choice of instruments for liquidity variables in calculating the impact on the real sector. If you are using cross country data, there are plenty of instruments that the literature uses.

Good place to start would be looking into HANDBOOK OF ECONOMIC GROWTH (http://web.stanford.edu/~chadj/Handbook.html) chapters 8 and 12. That should give you good idea about appropriate choice of instruments.

In general, if you are using data from only one country, instruments are much harder to come by. In the panel data setting in the research on finance and the real sector, the most popular is Roodman's implementation (http://www.stata-journal.com/article.html?article=st0159) of Arellano-Bond (1991), Arellano-Bover (1995) and Blundell-Bond (1998) technique which does not require the use of outside instruments.

However, one needs to be careful in adopting all the different techniques as they are mostly "imported" from microeconometrics and several conditions need to hold before one applies them to the macro data.

If you provide a more detailed description of your dataset and variables included in the model, perhaps I can be of more help.

Hi Joshua,

The first two objections you list can be easily dealt with by discounting future profits (what in the finance literature is known as free cash flows) by using a suitable discount factor, which could include a risk premium. Nevertheless, these objections are equally valid for shareholders' wealth maximization any way.

The third criticism, which in my opinion is a valid one, is also applicable to wealth maximization because both profit and wealth maximization are zero sum games: There exist inherent contradiction in private and public interests, contrary to what Adam Smith suggested.

I hope you find this helpful.

This may be true in case of developing economies. At-least  this will eliminate the possibilities of crowding out effect.

Annual probability of default 5Y CDS spreads

Naive diversification rest on the assumption that simply investing in enough unrelated assets will reduce risk sufficiently to make a profit. Alternatively, one may diversify naively by applying the capital asset pricing model incorrectly and finding the wrong efficient portfolio frontier. Such diversification does not necessary decrease risk at a given expected return and may in fact increase risk.

Markowitz diversification occurs when one uses mathematical models to find the stock to place in portfolio such that the portfolio has the highest possible return for its level of risk. One may engage in MArkowitz diversification when one wishes to increases or decreases one's portfolio's risk, or when the portfolio was previously not diversified.

This is perfect to start with: thank you very much

Absolutely. Take the case of a portfolio. The measurement of alpha with CAPM assumes that a portfolio is (1) passive and (2) similar in style and value as the "market." In this case, a significant negative or positive alpha can be a distortion. For example, if (1) your portfolio is more value-oriented than the "market" and (2) value stocks have overperformed growth stocks during the period of evaluation, your portfolio alpha is overestimated. Now, if you orthogonalize alpha for value and size biases, then your measurement of "excess return" is more refined. Momentum (Carhart) and market timing are also factors can be added. In fact, professional (commercial) factor models like MSCI BARRA use up to 8 or 10 risk factor groups comprised of 100s of risk macro components (liquidity, confidence, volatility, trading activity, etc.).

The assumptions remain unchanged. No theory is perfect. All subject s to criticism. Most important thing is what we can learn from the theory.

A friend was looking for information. Working with Bloomberg today, so instead of taking historical values​​, then collect a variable score of historical bloomberg governance. It is a way out.

The score bloomberg is a continuous variable, then it is best to apply econometric models.

I am an attorney specializing in advising clients on infrastructure development and finance matters. I also teach law students, as well as foreign officials (many of whom are in emerging markets) on raising private capital. Perception of risk is a key issue when my clients are making an investment decision. Part of the evaluation includes a sovereign risk analysis as the success of a transaction is very much influenced by the willingness and ability of the country to support the project both at its inception and through the life of the deal,. Many infrastructure projects require a considerable amount of debt and equity capital, and it may take 15-20 years for the investor to repay the debt and obtain the expected return on the equity investment.

This analysis includes a number of issues, including the stability of the government, the economic conditions in the country, the history of the country and its citizens in supporting private investment in the country for infrastructure projects, and whether there is a favorable legal and regulatory climate. Additionally, it may take a number of years to develop projects, and if the perception is that it would take too much time or money to invest in a particular country, the investor may look at similar investments in other jurisdictions where the perception is that the development will be easier to manage. Finally, many of these projects use project financing as a means of raising debt, so even if the client is willing to invest in the project, the client considers whether lenders are willing to lend to the project and the conditions to providing the loans. The investors also evaluate the availability and cost of political risk insurance and the types of risks that the insurance covers as a way of mitigating these risks, again comparing this with availability and costs in other jurisdictions.

Modern liberalized markets makes countries (especially economically weaker) become even more financially dependent on developed countries. The development of the global financial market reduces the effectiveness of national economic policy. Therefore, as stated above "blessing" only for some countries.

You can find that for Peru and many countries in the world from http://unctadstat.unctad.org/ReportFolders/reportFolders.aspx. The specific data fro Peru is attached.

They are a consequence of growing international shareholding and trade and are particularly important for companies that have dealings in several countries. They are progressively replacing the many different national accounting standards. The rules to be followed by accountants to maintain books of accounts which is comparable, understandable, reliable and relevant as per the users internal or external.