In what ways have changes in the international economy since the 1960s Essay

In what ways have changes in the international economy since the 1960s effected the development of London as a world city - Essay Example One of the major backdrops to London’s economy is urbanization. In the 1960s, planning proliferated sociologists and architects were determined to change the world, town halls and campuses supported by modernization, morphology, networks and central places. It was therefore confidently believed that London provided a good key to creating a future city and an environment that was wholly planned (Sassen, 106). Since 1960s, changes in the international economy have greatly affected the development of London as a world city. The success of London in business and service industry is founded on its native language, English. The city also had a good track of openness and space for the other dominant international business languages used in Europe and major business destinations across the globe. Coincidentally, it was the choice of the British Empire for the headquarters as it is situated strategically in relation to other countries of the European Community central time zone thus acting as a bridge between Asian and US markets. Perhaps the international image and symbol held by the city regarding the country’s diplomatic ideology contributed to its popularity among the international community as well. The strong relationship between US and United Kingdom, and the UK’s good historical relationship with Middle East, African and Asian countries have boosted its success. It is therefore in line to refer to London as victor regarding business positioning in both local and international domains. As such, its status in this context must be considered as an occupant of rare niche held only by a few elite cities whose fortunes can be observed from different angles illustrating how class and might can surpass limitation. Despite the earlier fame and grandeur that London boasted of within a promising prospect of brilliance into the future,

Business financing and the capital structure Assignment

Business financing and the capital structure - Assignment Example Companies can either decided to use equity or debt or a combination of the both. Whichever source is chosen; the following should be noted: Debt finance is a source that earns a fixed return (interest) to the lender. The interest is fixed at the par value of the debt (face value). This source of finance is ideal to be sought by a company that has a strong base of equity. Debt funding is only available to qualified companies based on credit ratings, and its availability is limited to the value of the security provided (Chandra, 2011). Advantages of Using debt finance – first, the interest charged on the debt is tax allowable. Second, the cost of debt is fixed regardless of the profits made by a company and due to that, under high profits, the cost of debt becomes lower. Third, it does not involve many formalities and due to that, it is suitable when a source of finance is required urgently. Fourth, if the debt is long-term, the amount owing declines with time, thus reduces the repayment burden to the borrower. Fifth, this type of finance does not influence a company’s decision since creditors do not participate in the annual general meeting (Chandra, 2011). Disadvantages of debt finance – first, it can only be invested with the lender’s approval. Second, when used in excess, the creditors might demand a representation on the Board of Directors. The representation might affect a company’s decision-making. Third, it is risky to use it during an economic decline because its usage might send a company into receivership. Lastly, it is only available for specific ventures, thus might affect the flexibility of the company’s investment strategy (Chandra, 2011). Equity capital - it is raised from the public through the sale of ordinary shares. This source of finance is available exclusively to Limited Companies. It is a changeless finance source, as the shareholders cannot review this cash except under liquidation. It is, along these lines,