What are the differences between global depositary receipts (GDRs) and American depositary receipts (ADRs)?

July 7, 2024 No Comments

A: A global depositary receipt (GDR) is a bank certificate issued in multiple countries for shares in a foreign company. The shares of a GDR trade as domestic shares. They are offered for sale globally through various banks. A GDR a financial tool that is

What are the differences between internal and external economies of scale?

July 7, 2024 No Comments

A: Internal economies of scale are firm-specific, or caused internally, while external economies of scale occur based on larger changes outside of the firm. Both types result in declining marginal costs of production, yet the net effect is the same. External economies of scale are generally described

What are the differences between the Federal Funds Rate and LIBOR?

July 7, 2024 No Comments

A: In macroeconomics, the interest rate plays a crucial role in delivering an equilibrium on the assets market by equating the demand and supply of funds. The two most prominent interest rates widely featured are the federal funds rate and the London Interbank Offered Rate

What are the different types of letters of credit?

July 7, 2024 No Comments

A: Letters of credit are important assurances or guarantees to sellers that they will be paid for a large transaction, particularly with international exchanges. Think of them as a form of payment insurance from a financial institution or another accredited party to the transaction. The very

What are some common features of a mixed economic system?

July 7, 2024 No Comments

A: A mixed economy is defined by the co-existence of a public and private sector. The specific mix between public and private can vary significantly from one mixed economy to another, however. Based on their respective natures, the private sector is subservient to the public

What are some of the drawbacks of industrialization?

July 7, 2024 No Comments

A: In economic history, industrialization is the social and economic transformation of the human group from an agrarian society to an industrial society. Environmental drawbacks include high pollution of air, water and soil that can result in significant deterioration of quality of life and life

What are some current examples of oligopolies?

July 7, 2024 No Comments

A: Oligopolies are prevalent throughout the world and appear to be increasing ever so rapidly. Unlike a monopoly, where one corporation dominates a certain market, an oligopoly consists of a select few companies having significant influence over an industry. Oligopolies are noticeable in a multitude

What are some of the limitations and drawbacks of economics as a field?

July 7, 2024 No Comments

A: Economics is a social science that examines how people produce, distribute, and consume goods and services. This means that much of the field is based on human behavior, which can be somewhat irrational and unpredictable. For this reason, it has certain inherent limitations that

What are some examples of “pork barrel politics” in the United States?

July 7, 2024 No Comments

A: So-called “pork barrel politics” has been present in the United States’ legislative and, to a lesser degree, executive branches since the 1800s. Generally used in a derogatory manner, the term refers to the practice of politicians trading favors granted to constituents or special interest

What are some examples of companies that are Value-Added Resellers?

July 7, 2024 No Comments

A: Among the most common value-added resellers are computer retailers and service companies, automobile dealerships and furniture stores. Value-added resellers are businesses that sell products manufactured by other companies in addition to selling their own supplemental products and services, thereby increasing the value of the

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