International Stock Investment Portfolio Management Strategies for Emerging Economies

People or companies canalize their money to consumption or retain it for the future. Their desire to use their savings to obtain extra income gave birth to the concept of investment. They do this in a frame of expectations about the future. Expectations are the foundation of all investment decisions. This chapter focuses on how an investment and portfolio management process should be and explains different portfolio management strategies. It also includes different types of stock investments. The chapter intends to teach how one can choose a stock and manage money effectively. For this aim, the chapter includes value investment style, growth investment sytle, technical investment style, momentum investment style, fundamental investment style, and beyond. It is very important to know which strategy best fits your aims and your characteristics, so you will be able to learn this through this chapter. In addition, it is important to know how these strategies can used together effectively. In this chapter, an investor will find answers to questions about stock investment.

The Rationality of Dumping

Central America is an interesting region for developing business, and its proximity to South and North America makes the isthmus a strategic region for growth. Guatemala is seen as an emerging economy with the capacity for growth and expansion. The cement industry is now one of the most competitive industries in Central America and has expanded to different countries in the region. However, this was not the case in 1999 when the Mexican Firm Cruz Azul entered via a price predation strategy into the Guatemalan market. Game theory demonstrates the advantage of price predation and the rational decision-making behind the strategy, and also demonstrates that a business smaller than its competitors can win a price predation battle by cooperating. The analysis is based on the dissertation by Garita (2008).

The Role of Religion and National Culture in Economic Growth of Emerging Markets

Religion can influence economic growth and economic growth can influence religiosity (Barro & Mitchell, 2004; Barro & McCleary, 2003; McCleary, 2007). Earlier, Weber (1904, 1930, 1958) had suggested that the protestant work ethic gave rise to capitalism and that other major world religions including Catholicism, Judaism, Islam, Hinduism, Buddhism, Confucianism, and Daoism were not conducive to capitalism. However, the data on predicted growth rates and the current majority religion for the 24 emerging economies (Yeyati & Williams, 2012; IMF WEO, 2010) suggest these emerging economies with high growth rates include a variety of geo-political regions representing many different religions, national cultures, and even “no-religion” affiliation. For the same majority religion, the economic growth rates and Hofstede’s (1980) national culture dimensions vary among nations. Thus, religion alone is not sufficient to explain the higher economic growth of the emerging economies. The economic growth is influenced by additional social, political, and macroeconomic variables including human capital, infrastructure, technological progress, political stability, capital formation, domestic credit to private sector, foreign domestic investment, inflation rate, exchange rate, and international trade. In a secular sense, the religious beliefs and cultural values related to work and social ethic are conducive to economic growth through entrepreneurship and organizational effectiveness.

Reducing Corruption and Protecting Privacy in Emerging Economies

This chapter presents a location-based affective computing system, which can assist growing emerging markets by helping them reduce crime and increase public safety when used in conjunction with CCTV. Internet systems based on location-based services have increased in availability. Social platforms such as Twitter and Facebook now employ the information on user locations to provide context to their posts, and services such as Foursquare rely on people checking into different places, often to compete with their friends and others. Location-based information, when combined with other records, such as CCTV, promotes the opportunity for a better society. People normally abused by corrupt state officials for crimes they did not commit will now have alibis, shops will be able to more effectively build trust and procure new customers through “social proof,” and other forms of corruption will be tackled such as benefit fraud and tax evasion. Trust that everyone is paying his or her fair share can develop.

Interorganizational Information Systems and Interorganizational Relationships

As the external environment and alliance partnerships become more complex, managers should consider appropriate partners to enhance the efficiency and performance of their chain, as well as to gain potential competitive advantages (Chang, et al., 2007). Additionally, due to increasing global competition many organizations are aware of the benefits of using electronic solutions to support their Business-to-Business (B2B) environment. Thus, they opt to establish an electronic infrastructure to carry out physical chain's transactions and cover potential interorganizational relations. This would explain the prevalent use of interorganizational Information Systems (IOS) over previous years. Indeed, several well-known firms such as Wal-Mart, Dell Computer, and Carrefour have attained strategic advantages by setting IOS in their chains. In regard to their incontestable success within B2B networks, the chapter first focuses on the concept of information technology and particularly “interorganizational information systems” and its theoretical approaches. Accordingly, this chapter argues as a second step the theoretical relation between information technology (or IOS) and interorganizational contexts. Some approaches are advanced to conceptualize this interaction. The socio-technical approach is largely presented due to its relevance to research propositions.

A Survey of Game Theory Applications in Turkey

This chapter gives a brief review of game theory applications in Turkey. The intention is twofold: first, to provide the reader with an overview of game theory and its applications in Turkey; second, to explore the tractability of economic problems when formulating them as game theory models. The discussion starts with a general description of game theory models and follows with an investigation of game theory applications performed in Turkey.

Intelligent Business Decision-Making in Global Organizations via Fuzzy Reasoning Systems

Companies, organizations, governmental departments, and universities need to adopt globalization patterns for their generative survival in dynamic productive outputs. Such outputs are possible only after effective, rational, logical, and systematic treatment of all available input knowledge and information. These inputs mostly have imprecision, uncertainty, vagueness, incompleteness, and missing parts, which together provide a fuzzy arena where an expert is confronted with decision making under a set of conflicting and mutually inclusive vague alternatives. Any uncertain ingredient may be considered as a set of linguistic adjectives attached to the input and output variables so as to refine them into meaningful and less uncertain sub-sets. Logical propositions that combine each sub-set of any input variable to suitable sub-sets of other variables through logical ANDing connectives as precedents are related to a specific sub-set of output as consequent, which constitute fundamental logical rule. These are expert reflections towards management problem solving. The combination of such rules with logical ORing connectives presents linguistically the holistic decision structure of any management system. This chapter presents the essential steps required to achieve decision making under uncertainty for effective management via a fuzzy logic inference system. The basis of fuzzy logic modeling is presented which may be used by different business management experts.

Sustainable Development and Turkey’s Biomass Energy Potential

Although energy is indispensable for the provision of basic human needs and economic growth, it simultaneously threatens the basic elements of life when its production and usage is based on fossil fuels. Scientific evidence proves that high carbon emission is the main reason behind climate change. Therefore, producing energy from more sustainable type of energies has great importance not only to ensure preservation of a clean and livable environment for future generations, but also to reduce high dependence on fossil fuels for the production of energy. The latter issue is particularly important for emerging nations such as Turkey, which do not possess large fossil fuel reserves. Currently, Turkey is in a position to meet less than one third of its energy need domestically. Increasing the share of energy produced from biomass would help to create a low-carbon economy and cleaner environment, and increase the security of the energy supply and reduce dependence on imported oil and gas. The present study focuses on the level of Turkey’s biomass energy potential and the way in which to make efficient use of this potential. The chapter forwards two main questions: (1) To what extent can the quality of environment be improved via biomass energy? (2) What changes occur in economic variables such as foreign trade, employment, and balance of payments when fossil fuel is substituted with biomass energy?

The Evolution of Business Ethics to Business Law

Ethics in business ethics and law in business law are not as ambiguous, rhetorical, and esoteric as practitioners portray. Excuses as such have subconsciously become a habitus platinum safeguard against all wrongdoing. The usage of the habitus platinum safeguard is to defuse the unethical and malpractice of practitioners due to the ambiguous, rhetorical, and esoteric factors of and related to ethics in business ethics and law in business law. The ethical decision-making process, from ethics to law, involves five basic steps: moral awareness, moral judgment, ethical behavior, ethical behavior theorizing, and (business) law.

Social Capital, the Culture of Trust, and Economic Development

The benefits accruing from social networks and structures have been shown to correlate with economic performance at both the macro- and micro-levels. Indeed, social capital can be seen as a catalyst through which human and physical capital are utilized and political and economic freedom realized. In this chapter, the authors briefly review the broad extant literature on social capital before embarking in more detail on how game theory can be used to analyze and model social capital. Particular attention is given to the population game approach. This approach is well suited to model social capital as it allows us to capture individual behaviour, societal influence, and network structure. The growth of social capital is seen to depend on the incentives for cooperation, the way in which people learn from past experience, and the inter-connectedness of the social network. A particularly important question for many emerging economies is how social capital can be encouraged to grow from a low base. In a concluding section, which includes a discussion of the complementarities between strong institutions and social capital, the authors use the population game approach to study this issue.