Trade Isolation Effect of Terrorism Risks along the"Belt and Road"Route

Rising terrorism risks are a major obstacle for Belt and Road countries to integrate into the global trade network. Based on the cross-country panel data of the now 66 Belt and Road countries during 2000-2013, this paper carries out an empirical study on the trade isolation effect of terrorism risks with the following findings: Rising terrorism risks will indeed give rise to a significant "trade isolation effect" with greater negative impact on a country's export than on import. After taking into account the endogeneity of the variable of terrorism risks and heterogeneous casualties of terrorist attacks, this conclusion remains robust. In addition, the trade isolation effect of terrorism risks is also characterized by heterogeneous targets under attack, i.e. the degree of trade isolation effect is positively correlated with the randomness of targets under terrorist attacks.

Goyo cashmere company, Mongolia

In general the Goyo firm is one of best Cashmere Companies in Mongolia which is already exports their goods and services overseas in market throughout the world, which means it has international trade and finance. In this report it is discussed the Goyo Cashmere Company and the Cashmere industry in Mongolia. And it is recommended one new business idea which makes the Goyo Cashmere Company competitive in the market and gives some the new opportunities that no other Cashmere firm have. And more on it is discussed strategies entering the overseas market with its related risks and ways of reducing the risks. For conclusion the Goyo cashmere according to the new idea it can successful in the market.

Sequential Fair Stackelberg Equilibria of Linear Strategies in Risk-Seeking Insider Trading

This paper develops a sequential fair Stackelberg auction model in which each of the two risk-seeking insiders has an equal chance to be a leader or follower at each auction stage. The authors establish the existence, uniqueness of sequential fair Stackelberg equilibria （in short, FSE） when both insiders adopt linear strategies, and find that at the sequential equilibria such two insiders compete aggressively that cause the liquidity of market to drop, the information to be revealed and the profit to go down very rapidly while the trading intensity goes substantially high. Furthermore, the authors also give continuous versions of corresponding parameters in the sequential FSE in closed forms, as the time interval between auctions approaches to zero. It shows that such parameters go down or up approximately exponentially and all of the liquidity of market, information and profit become zero while the trading intensity goes to infinity. Some numerical simulations about the sequential FSE are also illustrated.

OPTIMAL INVESTMENT WITH NOISE TRADING RISK

This paper investigates the optimal dynamic investment for an investor who maximizes constant absolute risk aversion （CARA） utility in a discrete-time market with a riskfree bond and a risky stock. The risky stock is assumed to present both the dividend risk and the price risk. With our assumptions, the dividend risk is equivalent to fundamental risk, and the price risk is equivalent to the noise trading risk. The analytical expression for the optimal investment strategy is obtained by dynamic programming. The main result in this paper highlights the importance of differentiating between noise trading risk and fundamental risk for the optimal dynamic investment.