Question

The major areas of finance are: Corporate finance, Investments, Financial institutions, and International finance. Using the learning materials, identify and explain some of the skills needed in order to be effective in each of the areas. Additionally, you will also evaluate and incorporate the impact of technology, the economy, and the new economic stimulus package on careers in the respective areas of finance.

Answer 1

Corporate FInance:

Major skills needed:

• Accounting base( How to read and evaluate financial statements)
• Financial aptitude
• Analytical and quantitative interpretation
• Diligence and attention
• Interpersonal skills

Investments:

Major skills needed:

• Knowledge about different type of assets and asset classes
• Analytical thinking
• Negotiation skills & Communication
• Negotiation skills
• Resilience

Financial institutions:

Major skills needed:

• Market awareness and knowledge about Banking terms
• Interpersonal skills
• Teamwork
• ability to identify early warnings
• Customer service and team work

International Finance:

Major skills needed:

• Knowledge about world economy and emerging markets
• Understanding and managing the economic and currency risk
• Entire flow of International transactions
• Ability to identify early warnings
• communications

The impact of technology, the economy, and the new economic stimulus package on careers:

It is to be noted that FInancial careers are always affected by changes in economy or technology either negative or positive way. After the IT boom Financial careers has seen a considerable transformation in recruitment and jobrole offered. This is attributed to the fact that many jobs were automated through the use of IT, many jobs were became redundant and many new job roles came. The careers offered in Finance changed drastically from the implementing type of roles to managing roles. Currently most of the reputed roles are managing roles or decision making roles. Previously hig valued roles like Market trader has lost its value.

Similarly the careers in finance are also affected by the economy and economic policies. A positive signal by the governement by reducing the tax rates, encouraging for investments etc have always created new oppurtunities and job roles in finance. But as the policies changes these developments can be highly volatile and will sustain only based on the stability of economy and the policies.