November 15, 2012

Business School and BATNA

Negotiation theories are really not about local contexts and manipulating the bell curve. There are best alternative to negotatiated agremeents, and the first thing that comes to mind when we talk of terms, and conditions, agreements and lawyers is really the way americans have used legal entities in their daily lives.

American Insurance companies work in close (hand-in glove) arrangement with legal entities to restore insurance claims, and create better wellness practices for any one moving there.

It is a great place for medical tourism- think of the million lives that are created by them with the way they create broad understanding of roles, and protocols within Obama government, and with their aides.

i feel the new word in the lexicon, or if you choose to say ''buzzword'' is the Fiscal Cliff. Fiscal is usually the national deficit that Indian government tracks for the cross-border trade between different states. The state governments have their accounting sheets, and they have assets, liabilities, and stockholder's equity for their portfolio. There is not much value for human capital by the indian government.

Move over to America the fiscal cliff will propel by the estimate to risk-adjusted discount rates. There is a measure and price for financial risk  There can be 4 types of risk that can influence returns

1. Risk and return of a single asset
2. Risk and return of a portfolio
3. Market RIsk
4. Correlation between risk and return

If the rate of return of an American Asset (Property) is Annual Income+ Ending Price- Beginning price then the factor of beginning price will improve the rate of return. The rate of return would yield current yield and capital market yield. While current yield could be the monetary policies between the US Dollar, and the rest of currencies the capital market yield will be influenced by the fiscal side of situations (Import-Export Ratios)

If we look at the Indian Trade arrangements they stand at 50 billion with China, and if we look at trade arrangements of US and India probably they would be holding on to a 5 billion estimate.

However for the tax cuts, and defence cuts to hold off there needs to be a very careful best alternative chosen for the political organizations and their management houses. A they need to look at government exchequer as a portfolio, and correlate(cause) their market risk (recession) with the returns that is more human capital employment, and better medical services for the community. Since republicans have had a lot of work to be done on managing their real estate property bubble it's time for Obama to look at market risks outside his economy.