Recent Events Have Convinced Many That Reforms Are Needed in the Financial

question 65

Essay

Recent events have convinced many that reforms are needed in the financial system to discourage speculation, in which people seek to make money by merely buying and selling pre-existing things, rather than by making new or better or, at least, more things. Describe how speculation might have macroeconomic consequences that justify government prohibition or regulation .

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Definitions:

Franchising

A business model whereby the owner (franchisor) of a product, service, or method obtains distribution through affiliated dealers (franchisees).

Market Entry Strategy

The planned method of delivering goods or services to a new target market and distributing them there.

Operational Support

Services and activities that assist in the day-to-day functioning of a company or organization.

Mission Statement

A concise representation of the intended purposes and core beliefs of an enterprise, organization, or single person.