Research Topics: Methodology

Human Resource Development in Asia Research Proposal Paper

Research Proposal Human Resource Development in Asia   Introduction With growing issues and concerns with the importance of human resources, it is duly significant that the management should be able to consider approaches and strategies which will enable an business enterprise to recruit, retain and develop skillful as well as knowledgeable workforce. Accordingly, human resource development has served the needs of business enterprises to make their staffs and personnels have an up-to-date expertise.   One aspect that should be given emphasis by human resource management is to have a work environment which adheres to the current and the future needs of their human resources, specifically for technological and technical skills impacted by the rapid development in line with the emergence of information technology and globalization.             It is argued that the future for human resources needs the widening of the strategies being utilized and considered and the application a more advanced model for staffs and personnel training and development. For this reason, different industries are investing on human resource development as means of achieving cost-effective and on time results. But there is a need to understand that the human resource development policies should enhance staffs and personnel satisfaction (ES) and only then can improved performance be attained.  Training and development programmes as a part of Human resource development should be based on the needs of the staffs and personnels and aligned with goals of both the firm and the staffs and personnels (Hill & Wiens-Tuers, 2001). Like many other countries, Asian countries are also facing various challenges and problems in adhering to the context of human resource development.  Primarily, the main goal of this paper is to conduct a research in terms of the human resource development in Asia. Background of the Study The development of the staffs and personnel is among the business enterprises management’s obligation.  The attain and meetment of corporate success can only be accomplished by people (Cascio, 1995). With this, Business enterprises management realizes that enhancing the staff’s knowledge is essential as it can enhance the service standard and increase the staffs and personnels’ loyalty and commitment. By enhancing the staff knowledge, it can provide better quality of providing services or products as well as organizational growth and assist the staffs and personnel’s professional development. Such enhancement could be in the form of various learning techniques which is included in human resource development programmes. For business enterprises to maximize their assets, they should manage the staffs and personnels’ working condition with intelligence and efficiency (Ulrich, 1998). They must be permitted to be involved in making work-related decisions to further enhance and develop their personal aptitude and the organizational structure (Delaney & Huselid, 1996).). It is therefore necessary to understand the staffs and personnels for the business enterprise to be effective. The development, building, enhancement, motivation, and enrichment of the staffs and personnels of any business enterprise largely depend on the leadership, mandate, and vision of the business enterprise (Rainey & Steinbauer, 1999). In relation to learning, Human Resources Department (HRD) is a key department to implement different kind of trainings for staffs and personnel to learn. Through training, it can improve the staffs and personnel’s knowledge and skills as well as assists staffs and personnels to attain and meet higher level of performance and personal development. According to Sadler (1989), “The term “development” is utilized and considered to describe a range of processes and experiences including formal education and training courses, whether in-company or provided by external institutions; training on the job; and activities such as project work  and job rotation” (p.154). Research Objectives The main goal of this paper is to analyze and investigate the human resource development in Asia. Specifically this paper aims to attain and meet the following objectives: <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What 	are the present 	 	economic situations and future prospects of Asian countries?</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What 	are the 	 	global and regional trends that affect the human resource development in 	 	Asia?</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What 	are the skills needed by 	 	business organisation to cope with the global and regional trends 	influencing 	 	HRD in Asia?</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	What 	are the 	 	issues/challenges for 	 	organizational management in Asia ?</li> Methodology To be able to attain and meet the objective of the HRD in Asia investigation and research, the research will be using descriptive approach to gather pertinent data for analysis and to decide for the conclusion of this paper. Based on the objectives, this research can be considered as descriptive since it seeks to find the different information and aspect regard human resource development in Asia.  The research method that will be utilized and considered in this study is based on qualitative and quantitative approach. The qualitative approach enables an iterative and flexible technique, while the quantitative research enables the specification of the depended and independent variables to be utilized and considered in this study. In addition, it also allows longitudinal measures of subsequent performance of the HRD in Asia investigation and research (Creswell, 2003). In this HRD in Asia investigation and research, the choice and design of the research approach are constantly modified based on the ongoing data analysis (Jancowics, 2000).         The main purpose of this study is to analyze the human resource development in Asia.   Research Approach This study will be using primary and secondary data source. The primary data will come from a survey-questionnaire to be distributed to the staffs and personnels of Asian companies and the secondary data will be from different documents published and unpublished from libraries, internet source and universities, books, magazines and articles and journals regarding human resource development. This research paper will use support secondary research to provide relative conclusion.  Furthermore, this study will try to be supported by theoretical aspects as the research will use management theories to support the findings.   The author will try to formulate concepts that adhere to the topic of the study of knowing the relationships of the data gathered. In this research proposal, the researcher will use purposive sampling for the selection of the respondents.  Purposive sampling is relevant to this study since the approach is very simple and easy to comprehend. The respondents of the study compose of 50 staffs and personnels from a chosen Asian company and the researcher will provide the questionnaire to gather pertinent data.  Surveys are conducted to gather data from the staffs and personnels so as to generalize the results (Commonwealth of Learning, 2000). In this research, the survey form is consisted of questions and statements in which the respondents will assess through the use of Likert Scale.   The following diagram shows the step by step procedure of this HRD in Asia investigation and research. Figure 1 Input – Process – Output Model                      The figure below shows the general structure of the dissertation. Substituting the important details of this HRD in Asia investigation and research diagram, the researcher came up with the following: Figure 1.2 Significance of the Study This HRD in Asia investigation and research will be significant and essential to the Asian countries and organisation who want to have knowledgeable and efficient human resources.  In addition, this HRD in Asia investigation and research will also contribute to further understand and comprehend the importance of different factors that affect human resource development in Asian countries.   As noted, this paper will specifically deal with Asian organizations and how they handle human resource development. The result of this research will also contribute to the understanding of business enterprise in Asia.. This research dissertation will also be essential and valuable to Asian industry, specifically those industries that are planning to consider human resource development approach. The survey of the research dissertation will help identify what Asian industry’s consider in developing human resources. Reference Commonwealth of Learning. (2000). Manual for Educational Media             Researchers: Knowing your Audience. Vancouver, Canada:    Commonwealth Educational Media Centre for Asia (CEMCA). Online available at http://www.cemca.org/newsletter/sep2001/sep2001.htm, Accessed September 19 2008 Creswell. J.W. (2003) Research design. Qualitative, quantitative and mixed methods approaches. Thousand Oaks, CA: Sage. Online available at www.msvu.ca/ARCFamilyWork/pdf_files/MixedMethodologyHandout.pdf Accessed September 19 2008 Hill, E. and Wiens-Tuers, B. (2002) Do they bother? Employer training of temporary workers. Review of Social Economy, Vol. 60, p. 1. Jankowics, A.D. (2000). Business Research Projects. Third Edition, London: Business Press Thompson Learning.       Credit:ivythesis.typepad.com

Human Resource Development in Asia Research Proposal Paper

Research Proposal Human Resource Development in Asia Introduction With growing issues and concerns with the importance of human r...

Investment Appraisal as a Tool for Management Decision Making: A Research Proposal

INVESTMENT APPRAISAL AS A TOOL FOR MANAGEMENT DECISION MAKING: RESEARCH PROPOSAL             Investment appraisal is the most important decision of any business organization. It refers to the planning process that an organization conducts to determine whether their long term-investments such as research and development, new machinery, new products, new buildings and innovations are beneficial to the company or not in terms of yields and returns over a period of time. (Wikipedia, n.d., Investment Accountants, n.d.) It is a critical aspect of any financial management decision-making process because it involves a lot of money. Investment proposal is conducted to attract money into the organization and is basically a function of the financial manager.             Management commits a large amount of financial resources in investment appraisals because it is linked to tactical and strategic business decisions. Although project cost and benefits are hard to predict, and the uncertainty and risk in undertaking medium to long-term investment is high, investment decisions are aimed to achieve long term objectives which is the maximization of shareholders’ wealth. Careful and critical consideration is important in conducting investment appraisals because not only it is expensive it is also very costly, it also very difficult to reverse investment decisions that have gone awry. There are key considerations in investment decisions. These are cost, availability of funds, return on investment, the length of payback time, projected profits and if whether the financial resources used for the particular investment decision can be used somewhere else that yields better returns. (The Times 100, n.d.)             Investment appraisal is a continuous process. Many businesses approaching investment appraisal as a one stop shop have failed. As a continuous agenda, it follows some stages: search for investment opportunities, enquiry into the possible outcomes, identification of the best possible outcomes, capital budgeting (appraisal tools used to decide to continue investment or not), selection of the most viable project, implementation of the selected project, monitoring feedback and correction. (Investment Accountants, n.d.)             Capital budgeting is an important stage in investment appraisal. In this stage, financial managers use capital budgeting appraisal tools to determine if the project is worthwhile and to decide whether to continue the investment or not. The techniques most commonly used are Payback Period, Discounted Payback Period, Accounting Rate of Return (ARR), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), and Adjusted Present Value (APV). (Ansar, 2009) Review of Related Literature and Studies             Grigalunas, Chang and Yu, 2002 conducted an illustrative case study on investment appraisal of container port. Container port development is a risky development project as it involves greater financial, economic, and environmental risks. To review the risks involved the researcher used the following methods: net present value, extensive sensitivity analyses, Monte Carlo analysis and a dynamic discrete-event model. The latter is used to determine feasibility of the port plan and its projected operations. There are four specific risked that are identified and considered in this study. These are start-up volume of moves, growth rate of moves, costs, and efficiency of yard operations. The study found out that the most critical factor that determines financial success of a proposed container port is start-up volume and growth rate.             Akalu and Turner (2001) conducted a case study of capital budgeting strategies of four companies representing different industries. The results showed that the four companies used a decentralized strategy for project decision-making. The firms also utilized a combination of tools such as discounted cash flow (DCF) with their own “value management tool”. They also modified the DCF tool to adopt to their needs. Although the firms do not follow the same technique from the start of the project up to completion, this new trend signify that there is a change or shift in the methods of capital budgeting. Statement of the Problem             This study will describe a firm’s investment appraisal technique over a period of time. This study will also identify and describe specific investment appraisal techniques used by the firm. Finally this study will also determine whether a specific investment appraisal technique is effective for that particular firm of not. Methodology             A case study method is the most appropriate methodology for the review of investment appraisal techniques. The data gathering tools that will be employed in this study are interviews, secondary data gathering and direct observation and others as deemed necessary.     REFERENCES Akalu, MM and Turner JR, 2001. The Practice of Investment Appraisal. Abstract only. Available at:< http://papers.ssrn.com/sol3/papers.cfm?abstract_id=370935> [Accessed 26 May 2011]. Ansar, 2009. What are Investment Appraisal Techniques. [online] Available at:< http://www.helium.com/items/1507869-investment-appraisal-techniques-npv-apv-payback-arr-irr> [Accessed 26 May 2011] Cook, Mark. Approaches to Investment Appraisal. [online] Available at< http://findarticles.com/p/articles/mi_qa3889/is_200204/ai_n9076100/> [Accessed 26 May 2011]. Grigalunas, TA., Chang Y-T., Luo, M., 2002. Containerport Investment Appraisal And Risk Analysis: Illustrative Case Study. [online] Available at:< http://trid.trb.org/view.aspx?id=723687> [Accessed 26 May 2011]. Investment Accountants, n.d. Investment Appraisal for Everyone Especially Non Financial Managers. http://www.accountantnextdoor.com/investment-appraisal-for-everyone-especially-non-financial-managers-part-one/> [Accessed 26 May 2011]. Plant, P., 2000. Capital Investment Appraisal Process. [online] Available at:< http://www2.accaglobal.com/students/student_accountant/archive/2000/8/15148> [Accessed 26 May 2011]. The Times 100, n.d. Investment Appraisal. [online] Available at:< http://www.thetimes100.co.uk/theory/theory–investment-appraisal–380.php> [Accessed 26 May 2011]. Wikipedia, n.d. Capital Budgeting. [online] Available at:<http://en.wikipedia.org/wiki/Capital_budgeting> [Accessed 26 May 2011]. Credit:ivythesis.typepad.com

Investment Appraisal as a Tool for Management Decision Making: A Research Proposal

INVESTMENT APPRAISAL AS A TOOL FOR MANAGEMENT DECISION MAKING: RESEARCH PROPOSAL Investment appraisal is the most important...

USE OF INSTRUCTIONAL MATERIALS FOR EFFECTIVE TEACHING AND LEARNING: RESEARCH PROPOSAL

USE OF INSTRUCTIONAL MATERIALS FOR EFFECTIVE TEACHING AND LEARNING: RESEARCH PROPOSAL             Instructional materials are used by teachers to facilitate effective teaching and better quality of learning by students. Instructional materials are created to suit the different ways that students learn. While some students learn and retain information that are fed to them through a lecture, others learn better by reading. Other students however absorb information with the aid of visual cues in addition to the lecture and reading.  The use of different instructional materials assures and provides the student with different learning aids to maximize learning and retain the information given to them. (Bone. n.d.) Review of Related Literature and Studies             The guideline in the use of instructional materials emphasizes that they should be based on the fundamental concepts and principles involved in the specific subject or course that is taught. The purpose of this is to align the students understanding of the topic with current knowledge. It also teaches them to control and monitor their thought processes to facilitate learning. (Van Hooser, 2010) The method of instruction also determines the choices of instructional materials. The teaching methods can be divided into mass instruction techniques, individualized learning techniques, and group learning techniques. For mass instruction, audiovisual and instructional materials are used, worksheets, hand-outs and visual aids. They are illustrative and supplementary material to increase motivation or to integrate the lesson. In individualized learning, the material is the vehicle where instruction takes place. This material should be designed and created with utmost care as it facilitates exercises or used for diagnostic purposes. Group learning on the other hand, requires no specialized instructional learning because the emphasis on this avenue of learning is on the approach and technique. Nevertheless, booklets, worksheets and briefing materials are used. Like individualized learning they should be designed carefully to make sure that the learning exercise runs smoothly. (Ellington, 1987)             There are seven types of instructional materials: printed and duplicated materials, non-projected display materials, still-projected display materials, audio-materials, link-audio and still video materials, cine and video materials and computer-mediated materials. Printed and duplicated materials consist of hand-outs, assignment sheets, individualized learning materials, and resource materials for group exercises. Non-projected display materials are chalkboard displays, marker board displays, feltboard displays, flipcharts, hook and loop, magnetic board, wallcharts, charts, posters, photographic prints, mobiles (3D objects hung on the roof), 3D models, dioramas, and realia. Still-projected display materials are overhead projectors, slide shows, film strips, microforms. Audio materials are radio, gramophones, and audiotapes. Link audio and still video materials include tape slide programs, tape-photograph programs, film strips with sounds, radio-vision programs, tape-text, tape-model and tape realia. Cine and video materials are cine films, loop-films, tape-films, television broadcasts, videotape recordings, video-disk recordings. Computer-mediated materials are number crunching and data processing package, substitute tutor packages, data base systems, computer-managed learning systems, and interactive video systems.  (Ellington, 1987)             The method of teaching and student learning styles determine the type of instructional materials used. Further the use of different instructional materials designed within the 5E model is most effective in enhancing student learning. The 5E instructional model is based on the constructivist approach to learning. This model approaches learning by constructing new knowledge and skills by building on prior knowledge and experience. The 5E model follows five stages:  engage, explore, explain, elaborate, evaluate. Studies have shown that there is a high statistical link between the use of the 5E model and high achievement of students. (Van Hooser, 2010) The use of the 5E model is associated with high test scores and positive attitudes and feelings among first graders towards science. (Edey and Gomez, n.d.) Statement of the Problem             This study will find out the effectiveness of the use of instructional materials within the framework of the 5E constructivist model of learning. This study measures effectiveness through test scores and satisfaction level of the students on the instructional materials and method used. Methodology             An experimental group and control group will be utilized in the conduct of the study. The experimental group is the group that is given instructional materials that are adapted using the 5E model. The control group is the group that are given instructional materials but do not use the 5E instructional model. Both groups take a pre and post test. Their level of satisfaction of the technique used is also measured at the end of the experiment. The results of the tests are then compared using statistical tools to measure correlation or cause and effect relationship. REFERENCES Bone, J., n.d. What are the Importance of Instructional Materials in Teaching? [online] Available at:< http://www.blurtit.com/q7779922.html> [Accessed 26 May 2011]. Dictionary.com., n.d. Types of Instructional Materials. [online] Available at:< http://answers.reference.com/Learning/Misc/types_of_instructional_materials> [Accessed 26 May 2011]. Edey, J. and Gomez, S., n.d. Action Research Summary: Copernicus Project SSI Year 4: K-6 Literacy through Science. [online] Available at:< http://www.copernicusproject.ucr.edu/ActionResearchSummary/K-6/Use%20of%20the%205E%20Model.pdf> [Accessed 26 May 2011]. Ellington, H., 1987. A Review of the Different Types of Instructional Materials Available to Teachers and Lecturers. Teaching and Learning in Higher Education, 10. Abstract only. 1 – Available on microfiche Scottish Central Institutions Committee for Educational Development. [online] Available at:< http://www.eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=true&_&ERICExtSearch_SearchValue_0=ED289493&ERICExtSearch_SearchType_0=no&accno=ED289493> [Accessed 26 May 2011]. Ellington, H., 1987. A Review of the Different Types of Instructional Materials Available to Teachers and Lecturers. Teaching and Learning in Higher Education, 10. Pdf. [online] Available at:<http://www.eric.ed.gov/PDFS/ED289493.pdf> [Accessed 26 May 2011]. Van Hooser, T., 2010. Importance of Instructional Materials in Teaching and Learning Integrated Science. [online] Available at:< http://www.ehow.com/facts_7191804_importance-teaching-learning-integrated-science.html> [Accessed 26 May 2011]. Credit:ivythesis.typepad.com

USE OF INSTRUCTIONAL MATERIALS FOR EFFECTIVE TEACHING AND LEARNING: RESEARCH PROPOSAL

USE OF INSTRUCTIONAL MATERIALS FOR EFFECTIVE TEACHING AND LEARNING: RESEARCH PROPOSAL Instructional materials are used by te...

A RESEARCH PROPOSAL ON EUROPEAN BULK DISTRIBUTION IN THE POLYMER INDUSTRY

EUROPEAN 	BULK DISTRIBUTION IN THE POLYMER INDUSTRY   Aims and Objectives 	Research aim The study intends to look 	into the European bulk distribution in the polymer industry. Furthermore, 	this study also plans to research the supply chain and the differences 	between traditional market approaches compared to a partnership/networking 	approach. The study might as well probe into the development of third party 	logistic providers, the emergence of fourth party logistics providers and 	even more recently the use of Internet auctions in bulk logistics.   	Research objective 	The study seeks to shed light into the European bulk 	distribution in the polymer industry. Specifically the study intends to 	accomplish the following: 	1.                            	To determine the stages of polymer distribution in 	the European setting. 	2.                            	To uncover the role of parties in the bulk 	distribution. 	3.                            	To identify the relationship between the number of 	parties involved and the stages of polymer distribution in the European 	setting. 	4.                            	To determine the importance of networking theories 	in streamlining the supply chain. 	Possible research questions 	1.            	What are the traditional approaches in supply 	chain management? 	2.            	What are the networking approaches applicable in 	the bulk distribution industry? 	3.            	Why should suppliers be involved in the supply 	chain process? 	4.            	What are the possible courses of action that 	companies undertake to streamline their supply process? 	5.            	What is the setting of the bulk distribution 	industry in Europe?   	Methodology 	Research methodology and techniques for data 	collection 	The descriptive 	research method uses observation and surveys. In this method, it is possible 	that the study would be cheap and quick. It could also suggest unanticipated 	hypotheses. Nonetheless, it would be very hard to rule out alternative 	explanations and especially infer causations. Thus, this study will use the 	descriptive approach.  This descriptive type of research will utilize 	observations in the study.  To illustrate the descriptive type of research, 	Creswell (1994) will guide the researcher when he stated: Descriptive method 	of research is to gather information about the present existing condition.  	The purpose of employing this method is to describe the nature of a 	situation, as it exists at the time of the study and to explore the cause/s 	of particular phenomena. The researcher opted to use this kind of research 	considering the desire of the researcher to obtain first hand data from the 	respondents so as to formulate rational and sound conclusions and 	recommendations for the study. 	The research described in this 	document is based solely both 	qualitative and quantitative 	research methods. This permits a flexible and iterative approach. During 	data gathering the choice and design of methods are constantly modified, 	based on ongoing analysis. This allows investigation of important new issues 	and questions as they arise, and allows the investigators to drop 	unproductive areas of research from the original research plan. The 	primary source of data will come from interviews conducted by the 	researcher. While the secondary sources would be gathered from published 	articles from social science journals, theses and related studies supply 	management and networking.   	Proposed subject population and sample 	The respondents of this study would be selected company 	owners whose business is directly involved in bulk distribution.   	Data analysis techniques The 	researcher will tally, score and tabulate all the responses in the provided 	interview questions. Moreover, the interview shall be using a structured 	interview. It shall consist of a list of specific questions and the 	interviewer does not deviate from the list or inject any extra remarks into 	the interview process. The interviewer may encourage the interviewee to 	clarify vague statements or to further elaborate on brief comments. 	Otherwise, the interviewer attempts to be objective and tries not to 	influence the interviewer’s statements. The interviewer does not share 	his/her own beliefs and opinions. The structured interview is mostly a 	“question and answer” session.   	Project time plan 	The time line for this study is as follows: 	Month 1 to Month 3: selected respondents will be noted 	regarding their involvement in the study. 	Month 4 to Month 6: In-depth interviews with company 	owners will be conducted in order to understand their views on the topic. 	Month 7 to Month 9: Survey of related literature and 	treatment of the interviews of the respondents. 	Month 12 to Month 14: Write-up period. References Creswell, J.W. (1994) Research design: Qualitative and quantitative approaches. Thousand Oaks, California: Sage. Credit:ivythesis.typepad.com

A RESEARCH PROPOSAL ON EUROPEAN BULK DISTRIBUTION IN THE POLYMER INDUSTRY

EUROPEAN BULK DISTRIBUTION IN THE POLYMER INDUSTRY Aims and Objectives Research aim The study intends to look into the European bulk...

Methodology on the Impact of Global Financial Crisis in Nigerian Economy

THE IMPACT OF GLOBAL FINANCIAL CRISIS ON NIGERIAN ECONOMY   Nowadays, the whole world is experiencing most severe financial crisis that caused many international companies for closure, and made tremendous numbers of employees jobless.  In addition, the price hike of all commodities   even made the global condition worst.  In this connection, most of the developing countries like Nigeria are in the situation that continuous to worsen. This study will focus on the influence of the global financial crisis on Nigerian economy.  It has been found out that financial crisis made the gradual fall down of commodity prices, decline in export, lower FDI input, and fall in many business investments, turning down of remittance from abroad among many others.  As a result, the Nigerian federal government is recommended to take intervention policies that will lessen the unfavorable effects in the Nigerian economy.  Many policy makers in Nigeria were not prepared for the strong impact of global financial crisis to their economy.  The nation’s capital market is having trial and error process in their market capitalization.  (http://www.rrojasdatabank.info/crisisdb/onnigeria09.pdf) Furthermore, the Nigerians finally realized that global financial crisis is seriously damaging their economic condition; is when various market investments had all dropped down from N12 trillion to less tN9 trillion.  The Nigerian people finally accepted the global crisis, and they set an attainable goal of taking extra measure and implementation of improving Nigerian financial system in the export sector.  It is a fact that Nigeria largely depends on their economy on the export industry. Based on the research made, 99 percent of FX and 85 of local income are directly come from country’s oil export industry.  And, it is estimated that 58.4 percent of country’s exports are US bound.  While 67 percent of Nigeria’s non-oil exports go to Western Europe, as well as 20 percent goes to Asia.  ECOWAS, as accounted for only 11 percent in 2007.  The global financial crisis even affects the local economy of people in the country.  Many Nigerian banks were being closed, recessions, stock market crashed, currency crisis and sovereign defaults.  Moreover, the effects of the global crisis include the inability of many homeowners to continuously pay their monthly amortization.  The impact of global crisis on the central bank policies and regulation greatly affect thousands of money borrowers in the country.  Plus the fact, that the poor track record of many borrowers in most financial institutions which led to the severe impact of the global financial crisis to the lives of many Nigerian people.  (http://www.rrojasdatabank.info/crisisdb/onnigeria09.pdf) Furthermore, assumptions of different people about what happens to Nigerian economy also contribute to the impact of global financial crisis in the country.  Conventionally, homes and residences were not considered like stocks in the market in the ancient time in Nigeria, however, this old notion of the Nigerian people has been changed already over years now.  And, now, real state   has become one of the money makers in Nigerian economy.  During 2006, 22 percent of homes, a total amount of 1.65 million Units were just allotted for investment purposes.  Closely 40 percent of home purchases were not major residences.  This kind of speculative buying makes housing prices to go down extremely.  In this connection, the New Financial Architecture (NFA), a globally incorporated system of large groups of banks  which other known as “shadow banking system” of investment banks in Nigeria; offer hedge funds and bank-created special investment vehicles for the borrowers.  These financial programs make excessive risk to build up giant banks during the prospering period of Nigerian economy.  And, the NFA earned high leverage and systemic risk, with its channels of corruptions and red tape among higher officials down to their people that magnified the   global financial crisis on the Nigerian economy.  Aside from those issues, poor credit rating of the money borrowers due to securitization practices, credit rating agencies were added to the economic problem in the country.  What is securitization? Securitization is a structured financial system that assets, receivables or financial tools are acquired, classified into pools; and, being offered as collateral for third-party venture. Subsequently, high risk loans that are very rampant in the country have been rapidly growing in number. This is tending to be associated with the loosening lending standards. And, what worsens the Nigerian economical situation was the larger number of bad loans by high risk borrowers.  The lenders tend to allow these borrowers to avail “Ninja Loans” to those borrowers with no job or income, as well as no asset or collateral; besides, many banks give housing loans to immigrants without proper documentation.  In view thereof, the direct impact of the global financial crisis on the Nigerian economy   is more in the financial and banking industry.  Most of the commercial banks in the  country  stopped from investing   and partnering with US and other business partners in other  parts of the globe. (http://twnafrica.org/index.php?option=com_content&view=article&id=83:nigerian-economy-may-reel-under-financial-crisis&catid=58:investment&Itemid=86a) References: (http://www.rrojasdatabank.info/crisisdb/onnigeria09.pdf) (http://twnafrica.org/index.php?option=com_content&view=article&id=83:nigerian-economy-may-reel-under-financial-crisis&catid=58:investment&Itemid=86a)   Credit:ivythesis.typepad.com

Methodology on the Impact of Global Financial Crisis in Nigerian Economy

THE IMPACT OF GLOBAL FINANCIAL CRISIS ON NIGERIAN ECONOMY Nowadays, the whole world is experiencing most severe financial crisis that...

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