What are the disadvantages of backward integration for a mid-sized business seeking to expand?

July 7, 2024 No Comments

A: Backward integration allows businesses to obtain control over suppliers and improve supply chain efficiency. Businesses merge with and acquire their suppliers to gain strategic advantages over competitors and lower costs. In some markets, this may create monopolies and violate antitrust laws. This strategy has

What are some of the ways economic growth can be achieved?

July 7, 2024 No Comments

A: Economic growth is measured by an increase in gross domestic product (GDP), which is defined as the combined value of all goods and services produced within a country in a year. Many forces contribute to economic growth; unfortunately, no one is 100% clear about what

What are some real life examples of absolute advantage?

July 7, 2024 No Comments

A: Absolute advantage is fairly simple to identify in theory, but it can be difficult to tease out in practice. Even with the existence of absolute advantage, the influence of comparative advantage and other factors affecting trade make absolute comparisons between countries difficult. Absolute advantage

What are some real-life examples of the 80-20 rule (Pareto Principle) in practice?

July 7, 2024 No Comments

A: There are a number of practical applications for the 80-20 rule in diverse areas such as the distribution of wealth in economics, quality production control, business sales and growth. The 80-20 rule was invented by Vilfredo Pareto in Italy in 1906. According to legend, Pareto,

What are some roles of an investment bank?

July 7, 2024 No Comments

A: Investment banks serve a number of purposes in the financial and investment world, including underwriting of new stock issues, handling mergers and acquisitions, and acting as a financial advisor. Other roles of investment banks include asset management for large investment funds and personal wealth

What are the advantages and disadvantages of a command economy?

July 7, 2024 No Comments

A: A command economy is one in which a centralized government controls the means of production. The government determines what is produced, how it is produced and how it is distributed. Private enterprise does not exist in a command economy. The government employs all workers

What are the advantages and disadvantages of the International Monetary Fund?

July 7, 2024 No Comments

A: Established following World War II to help with post-war recovery, the International Monetary Fund (IMF) serves as a lender to modern governments and an overseer of international financial markets. In its infancy, the IMF was only responsible for supervising pegged exchange rates, part of

What are the advantages of using a simple random sample to study a larger population?

July 7, 2024 No Comments

A: Simple random sampling is a method used to cull a smaller sample size from a larger population and use it to research and make generalizations about the larger group. It is one of several methods statisticians and researchers use to extract a sample from

What Are the Best Measurements of Economic Growth?

July 7, 2024 No Comments

A: Economists and statisticians use several different methods to track economic growth. The most well-known and frequently tracked metric is gross domestic product (GDP). Over time, however, some economists have highlighted limitations and biases in GDP calculation. Organizations such as the Bureau of Labor Statistics (BLS) and the

What are some examples of inelastic goods and services that are not affected by the law of supply and demand?

July 7, 2024 No Comments

A: The laws of supply and demand affect all goods in the market. The degree to which prices respond to changes in supply and demand is known as price elasticity. Goods that are highly inelastic react less dramatically, but that does not mean the laws

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