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[6] viXra:1003.0201 [pdf] submitted on 6 Mar 2010
Authors: Fu Yuhua, Florentin Smarandache, V. Christianto
Comments: 96 pages
Nowadays, plenty of factories from Europe and other developed countries have been relocated
to this country, considering its tremendous economic scale and rapid growth rate during the
past three decades.
But most of what happens inside the China nowadays is deeply hidden from the outside world
("the foreigners" as China people would call). This fact is partly because most reports on
China were written by the so-called fly-high experts who are busy completing their reports
despite a busy schedule. Very few books or reports were written by people inside, or at least
"foreigners" who spent a few years in China. Therefore in this book, we took a different approach,
by inviting local scientists and other writers to describe what happens surround them.
Category: Economics and Finance
[5] viXra:1003.0200 [pdf] submitted on 6 Mar 2010
Authors: V. Christianto, Florentin Smarandache
Comments: 63 pages
After more than a decade Michael Porter's book Competitive
Advantage of Nations stays ahead of the other books, in
particular as alternative framework from the comparative
advantage idea inspired by Adam Smith.
This small book is merely an alternative proposition, a
postscript perhaps, to Porter's book, with basic idea that one
cannot rely merely on industrial processes alone to keep
stay ahead of market changes. Hence, for cities in
developing countries the municipal shall find out their city's
best resources, and develop their city starting from there,
instead of striving blindly in the conventional industrial path.
Category: Economics and Finance
[4] viXra:1003.0184 [pdf] submitted on 6 Mar 2010
Authors: Florentin Smarandache, V. Christianto
Comments: 11 pages
Despite the economics jargon on 'rational choice', nowadays the entire world has nothing else to choose except to
succumb under the spell of magic words of modern economics, i.e. 'neoliberalism', 'financial liberalization', 'free
market' (laissez-faire), and 'globalization'. All of these can be shown to be part of a preconception, i.e. far beyond
the 'neutral' idea of natural sciences.
In Fritjof Capra's book 'Turning Point' (Bantam Books, 1982) these phenomena are summarized as follows:
economics thinking have started by assuming that in economics sciences one can achieve the same generality and
universality that physicists enjoy in doing Natural Sciences. In other words, economists try to become through their
work 'hard science' rather than recognizing that in economics the subject of their study is human/people which is
far from being predictable, either as individual or as society.
In our humble opinion, economics is a mixture of both, hard and soft sciences. In order to show this, we introduce
a new study, called Poly-Emporium Theory, where we show that phenomena from hard science and soft science
co-exist and interact in economics. Poly-Emporium Theory is the study of interactions among many (big and small)
firms in the market, and it is different from oligopoly since poly-emporium takes into consideration the small firms
too (not only the big firms that dominate the market as in oligopoly).
The above logic of thinking is the starting point to submit a new idea, under the heading of 'Cultural Advantage.'
The first book in the series has title: Cultural Advantage for Cities: An alternative for Developing Countries. This
presentation summarizes its basic ideas, with a hope that these ideas may be found interesting to develop further.
For clarity the readers are referred to the book.
Category: Economics and Finance
[3] viXra:1003.0133 [pdf] submitted on 6 Mar 2010
Authors: M. Khoshnevisan, Florentin Smarandache, Sukanto Bhattacharya
Comments: 18 pages
In this paper we have devised an alternative methodological approach for
quantifying utility in terms of expected information content of the decisionmaker's
choice set. We have proposed an extension to the concept of utility by
incorporating extrinsic utility; which we have defined as the utility derived from
the element of choice afforded to the decision-maker by the availability of an
object within his or her object set. We have subsequently applied this extended
utility concept to the case of investor utility derived from a structured, financial
product - an custom-made investment portfolio incorporating an endogenous
capital-guarantee through inclusion of cash as a risk-free asset, based on the
Black-Scholes derivative-pricing formulation. We have also provided instances
of potential application of information and coding theory in the realms of financial
decision-making with such structured portfolios, in terms of transmission of
product information.
Category: Economics and Finance
[2] viXra:1003.0131 [pdf] submitted on 6 Mar 2010
Authors: M. Khoshnevisan, Florentin Smarandache, Sukanto Bhattacharya
Comments: 24 pages
In this paper we take a look at a simple portfolio insurance strategy using a protective put
and computationally derive the investor's governing utility structures underlying such a
strategy under alternative market scenarios. Investor utility is deemed to increase with an
increase in the excess equity generated by the portfolio insurance strategy over a simple
investment strategy without any insurance. Three alternative market scenarios
(probability spaces) have been explored - "Down", "Neutral" and "Up", categorized
according to whether the price of the underlying security is most likely to go down, stay
unchanged or go up. The methodology used is computational, primarily based on
simulation and numerical extrapolation. The Arrow-Pratt measure of risk aversion has
been used to determine how the investors react towards risk under the different scenarios.
Category: Economics and Finance
[1] viXra:1003.0129 [pdf] submitted on 6 Mar 2010
Authors: Jack Allen, Sukanto Bhattacharya, Florentin Smarandache
Comments: 21 pages
Each individual investor is different, with different financial goals, different levels of
risk tolerance and different personal preferences. From the point of view of investment
management, these characteristics are often defined as objectives and constraints.
Objectives can be the type of return being sought, while constraints include factors such
as time horizon, how liquid the investor is, any personal tax situation and how risk is
handled. It's really a balancing act between risk and return with each investor having
unique requirements, as well as a unique financial outlook - essentially a constrained
utility maximization objective. To analyze how well a customer fits into a particular
investor class, one investment house has even designed a structured questionnaire with
about two-dozen questions that each has to be answered with values from 1 to 5. The
questions range from personal background (age, marital state, number of children, job
type, education type, etc.) to what the customer expects from an investment (capital
protection, tax shelter, liquid assets, etc.). A fuzzy logic system has been designed for the
evaluation of the answers to the above questions. We have investigated the notion of
fuzziness with respect to funds allocation.
Category: Economics and Finance
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