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

July 8, 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 8, 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 8, 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 8, 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?

July 8, 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?

July 8, 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

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

July 8, 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 the disadvantages of using a simple random sample to approximate a larger population?

July 8, 2024 No Comments

A: Simple random sampling statistically measures a subset of individuals selected from a larger group or population to approximate a response from the entire group. Unlike other forms of surveying techniques, simple random sampling is an unbiased approach to garner the responses from a large

What are the economic impacts of specialization?

July 8, 2024 No Comments

A: Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output are intensified along different skills. An individual becomes economically specialized when he focuses his productive efforts on an increasingly narrow range of tasks. The

What are the Four Types of Economic Utility?

July 8, 2024 No Comments

A: The four types of economic utility are form, time, place and possession. “Utility” in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company’s goods or services. Companies seek to provide maximum customer

All Rights Reserved