What are the legal barriers to vertical integration?

June 30, 2024 No Comments

A: Vertical integration through internal expansion is not vulnerable to legal challenges. However, if the vertical integration is achieved through a merger, it may, from the outset, be vulnerable to a challenge under the confines of antitrust laws. Vertical integration through a merger is subject

What are the listing requirements for the Nasdaq?

June 30, 2024 No Comments

A: Major stock exchanges, like the Nasdaq, are exclusive clubs—their reputations rest on the companies they trade. As such, the Nasdaq won’t allow just any company to be traded on its exchange. Only companies with a solid history and top-notch management behind them are considered.

What are the main arguments in favor of the privatization of public goods?

June 30, 2024 No Comments

A: Public goods are defined by two characteristics. One is non-excludability, which means that even those who don’t pay for the goods are able to use them. The other is non-rivalry, which means that one person’s use of a good doesn’t reduce its availability to

What are the main differences between a mixed economic system and pure capitalism?

June 30, 2024 No Comments

A: A mixed economy is one in which the government does not own all of the means of production, but government interests may legally circumvent, replace, limit or otherwise regulate private economic interests. By contrast, a free private economic system allows voluntary and competing private

What are the main problems with a JIT (just in time) production strategy?

June 30, 2024 No Comments

A: The benefits of the just-in-time (JIT) production strategy are well-documented, but it can also have some serious disadvantages. The chief issue with this production process is evidenced in its name. “Just in time” means that the success of this business strategy depends largely on

What Are the Major Differences Between a Monopoly and an Oligopoly?

June 30, 2024 No Comments

A: A monopoly and an oligopoly are economic market structures where there is imperfect competition in the market. A monopoly market contains a single firm that produces goods with no close substitute, with significant barriers to entry of other firms. An oligopoly market has a

What are the most common market indicators to follow the Chinese stock market and economy?

June 30, 2024 No Comments

A: Due to China’s size, analysts follow indexes of several different stock markets, including the Hang Seng Index, or HSI; the Shanghai SE Composite Index, or SHCOMP; the Shanghai Shenzhen CSI 300 Index; Shenzhen SE Composite Index; and the Taiwan Stock Exchange Corporation weighted index,

What are the different types of letters of credit?

June 30, 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 the different types of price discrimination and how are they used?

June 30, 2024 No Comments

A: Price discrimination is a strategy that consists of a business or seller charging a different price to various customers for the same product or service.It is one of the competitive practices used by larger, established businesses in an attempt to profit from differences in

What are the different ways that utility is measured in economics?

June 30, 2024 No Comments

A: It’s difficult to measure a qualitative concept such as utility, but economists try to quantify it in two different ways: cardinal utility and ordinal utility. Both of these values are imperfect, but they provide an important foundation for studying consumer choice. In economics, utility

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