Economies of Scale * This is the cost advantage that a business obtains due to expansion. * That is the factor that cause the average cost of producing a product to fall‚ as output of the product rises as explained in the ‘Dictionary of Economics’. * By achieving economies of scale‚ a company would have the cost advantage over its existing and new rivals. * Further‚ the company could achieve lower long run average cost (i.e. productive efficiency). But if technology changes‚ this
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ECONOMY OF NIGERIA Nigeria is a middle income‚ mixed economy and emerging market‚ with expanding financial‚ service‚ communications‚ and entertainment sectors. It is ranked 30th in the world in terms of GDP (PPP) as of 2011‚ and its emergent‚ though currently underperforming manufacturing sector is the third-largest on the continent‚ producing a large proportion of goods and services for the West African region. Previously hindered by years of mismanagement‚ economic reforms of the past decade
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Essay – Our Economy The economy is consists of many factors which related to everyday life. It is the financial condition of the different sectors of the country and the world. These factors include the economic links‚ business cycle‚ interest rates‚ inflation and exchange rates. Money flows circularly through the modern economy. The macroeconomics model tells us that the level of economic activity is all depended on normal regular incomes and consumption which makes up the two sectors‚ firms and
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backdrop of the global economic slowdown‚ the Bangladesh economy has performed strongly over the past few years. Despite the fallout from the Euro debt crisis still contributing to an uncertain environment‚ the Bangladesh economy has pursued accommodative monetary and fiscal policies. However‚ if the global economic slowdown is much more prolonged than the current forecasts indicate‚ the impact on Bangladesh is expected to be adverse. The economy has persevered so far in the face of global recession
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Business Development in Emerging Economies Business Development in Emerging Economies Coursework Coursework Contents A. In your opinion‚ what is the future of emerging economies? Support your answer with relevant evidence. (2000 words) 3 Introduction 4 What are emerging economies 4 Future of emerging economies 5 Microeconomic approach 6 Long-term economic perspectives 7 The “Euro” perspective 8 Facts about the future 9 Forecast 11 Opinion 12 Risks for emerging markets
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Barter economy The non-cash exchange of goods and services is known as barter. Bartering was common in earlier societies‚ but is rare in an advanced economy with a stable currency. Barter usually replaces money as the method of exchange in times of monetary crisis. This can occur when the currency may be either unstable or simply unavailable for conducting commerce. A barter exchange operates as a broker and bank. In this type of exchange each participating member has an account that is debited
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| * New Economy vs. Old Economy | 2 | * Microsoft Corporation | 3 | Ford motor | 3 | Revenue and profit | 4 | Code of ethics statement | 5 | How effective is the firms? | 14 | Conclusion | 17 | Introduction * New Economy vs. Old Economy The world economy has recently changed. A new world economy has emerged over the last decade as two long-run broad trends‚ globalization and advances in information and communication technology (ICT) have converged. This ‘new economy’ is significantly
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Economies of scale Definition Reduction in long-run average and marginal costs‚ due to increase in size of an operating unit (a factory or plant‚ for example). Economics of scale can be internal to a firm (cost reduction due to technological and management factors) or external (cost reduction due to the effect of technology in an industry). Diseconomies of scale Definition Increase in long-term average cost of production as the scale of operations increases beyond a certain level
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Philippines Economics Table of contents 1. General Information 2. Agrarian Economy 3. Industrial Economy 4. Services Industries 5. Conclusion 1. General information The Philippines are located in Southeast Asia in the Western Pacific Ocean. 7‚107 Islands are part of the republic. The islands are divided into three major groups: Luzon‚ Visayas‚ and Mindanao. The South China Sea defines its western borders and the Pacific Ocean its eastern limits. The country-
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Economies of scale The long run – increases in scale A firm’s efficiency is affected by its size. Large firms are often more efficient than small ones because they can gain from economies of scale‚ but firms can become too large and suffer from diseconomies of scale. As a firm expands its scale of operations‚ it is said to move into its long run. The benefits arising from expansion depend upon the effect of expansion on productive efficiency‚ which can be assessed by looking at changes in average
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