ECONOMIES OF SCALE When a firm moves from small scale to large scale production‚ the average cost of production of each unit falls. The reasons for which this happens are known as economies of scale – they are the benefits which result in the cost savings of large scale operations which come about when a firm expands. In other words‚ economies of scale are advantages reaped by firms engaging in large scale production. There are two types of economies of scale. They are: * Internal economies
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Government-bond markets in peripheral countries are soaring Jan 19th 2013 |From the print edition THE squiggles on traders’ screens showing changes in the prices of government bonds are the closest thing that financial markets have to ECG machines for economies. By this diagnostic measure the invalids in Europe’s medical ward are making a remarkable recovery. On January 10th the interest rate on Spanish ten-year government bonds fell below 5% for the first time in almost a year. Even though rates then
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Economics Assignment 2 The Indian Economy Executive Summary The Indian Economy is currently experiencing strong growth adverse to difficulties witnessed after the global financial crisis. Current GDP levels at approximately $1.5 US Dollars as the fifth largest economy in the world. The aim of this paper is to address macroeconomic conditions that may affect India’s ability to maintain high levels of growth. Monetary and Fiscal policy have been analysed and recommendations made to manage
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CONTENT 1) INTRODUCTION 2) TYPE OF ECONOMY 3) GOVERNMENT 4) QUICK FACTS 5) WHY GERMANY? 6) SOURCE INTRODUCTION Germany has always been a driver‚ innovator‚ and beneficiary of an globalised economy. The country consists of 16 states‚ and its capital city is Berlin. Germany has the fifth-largest GDP in 2012. Germany is the worlds third largest exporter with $1.4 trillion exported in 2011. Germany is a key member of the continent’s economic‚ political‚ and
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to mixed economy. What Is Mixed Economy? According to Amadoe (2015)‚ mixed economy can be defined as “An economic system that features characteristics of both capitalism and socialism. A mixed economic system allows a level of private economic freedom in the use of capital‚ but also allows for governments to interfere in economic activities in order to achieve social aims. This type of economic system is less efficient than capitalism‚ but more efficient than socialism.” In mixed economy private sector
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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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Economy Overview In the Australian economy there has been a continuous growth and features a low unemployment‚ contained inflation‚ very low public debt‚ and a strong and stable financial system. Australia had experienced more than 20 years of continued economic growth‚ averaging 3.5% a year. Australia was comparatively unaffected by the global financial crisis‚ Australia has benefited from a dramatic surge in its terms of trading in recent years. Australia has the best exporter of natural resources
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Economy is supposed to mean the stabilization of resources in a country. As of now‚ the term economy means being unstable or anarchy. The economy is struggling daily causing everyday living difficult for civilization. The deprivation of oil‚ the decrease of care towards the environment‚ and the possible recession of the United States of America economy is what keeps the economy very unstable. Currently‚ this is the worst that it has ever been and it does not look like change is in the horizon. The
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What type of Economy does China have? Explain some of the benefits of this system to the country and some of the drawbacks. 1. Since the People’s Republic of China was formed in 1949 until 1978‚ China had a planned socialist economy like the former Soviet Union. The government owned all factories and farms. Planning committees controlled all production. Market forces were often ignored when they conflicted with plans of the state. In 1978 China introduced farm reforms. Farmers could grow
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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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