Thursday, 29 March 2007

Regulation

I don't understand something. First of all, why we get cases like the fall of Enron in the United States? Secondly, with the fall of Enron, does it have any impact on UK's economy and what about global economy then?p>
First of all, in order for me to answer the first question,it is always very subjective.. In my personal opinion, the fall of Enron was a direct result of poor Regulation and pure greed. Those people who committed the act has no idea what they would have cost the nation domestically and also globally. They have no idea.


The fall of Enron was a direct result of poor regulation of corporate governance. Nobody had check and balance on the company. What happened in the end? Boom!!!There goes shareholder's money who has invested in the company when the company seek protection from bankcrupcy. That is no good at all.


After the fall of Enron, many people have taken their busineeses out of New York and into the UK especially London. Now London is the central hub for financial services. Why? That is because with the fall of Enron, it is getting stricter for companies to set up in the United States and also numerous check and balance on the company each year. It is a hassle which makes people think that London is a far better choice.


Well, in answering the second question, I do personally think that the impact on UK's economy is significant as I have mentioned earlier. Now, London is well known as the main financial hub of the world. As to global economy, I think it is important to know that we have regulations and we are quite flexible too. This makes us special and appealing to the global economy. They like to trade with us because we are honest and trustworthy. That is good for our economy, don't you think so?

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