MGMT 1030 Study Guide - Barings Bank, Nick Leeson, Merchant Capitalism
Document Summary
Capitalism involves investment of money in order to make a profit, the essential feature of capitalism. It is not the nature of activity that matters, but the possibility of making a profit out of it. The overall theme has to do with the ventures of different people and their successes and failures of wanting to make a profit. Like there is big risk associated with capitalism and therefore you can have an excellent turnout or you could lose everything. For example w/ the barings bank that set up barings securities, like they were very profitable with the nikei until the nikei began to plunge and they became engulfed in further debt. It basically goes to show that capitalism can also be the root of malicious acitivities and cheating because ppl become too greedy about profits that they began cheating like the people at barings. It was operated by the rich london merchants.
