- Industry: Economy; Printing & publishing
- Number of terms: 15233
- Number of blossaries: 1
- Company Profile:
A market in which the seller seems to have the upper hand and so can charge a higher price than in a.
Industry:Economy
Policies to pump up demand and thus boost the level of economic activity. Monetarists fear that such policies may simply result in higher inflation.
Industry:Economy
The order in which creditors are entitled to be repaid. In the event of a bankruptcy, senior debt must be paid off before junior debt. Because junior debt has a lower chance of being repaid than senior debt, it carries more risk, and thus typically pays a higher yield.
Industry:Economy
A policy intended to boost economic activity in a specific geographical area that is not an entire country and, typically, is in worse economic shape than nearby areas. It can include offering firms incentives to provide jobs in the region, such as soft loans, grants, lower taxes, cheap land and buildings, subsidized labor and worker training. Is it necessary? A region's problems should be somewhat self-correcting. After all, simple theories of supply and demand would suggest that firms will move to areas of low wages and high unemployment to take advantage of cheaper labor and surplus workers, or that workers will move away from such areas to where more and better-paid jobs exist. But some economic theories suggest that rather than moving to areas where wages are lowest, firms often cluster together with other successful businesses. Regional policy may need to be extremely generous to tempt firms to give up the advantages of being in a cluster.
Industry:Economy
Shorthand for implementing economic reforms in the right order. In recent years, this has become a hot topic in development economics. Some economists argue that introducing the right policies alone is not enough to revive a malfunctioning economy; reforms must be implemented in the right sequence. Thus they debate when in the reform process there should be, say, privatization of state enterprises, and in which order, or the lifting of capital controls or other trade barriers. Other economists dispute whether there is a right sequence.
Industry:Economy
Number-crunching to discover the relationship between different economic variables. The findings of this statistical technique should always be taken with a pinch of salt. How big a pinch can vary considerably and is indicated by the degree of statistical significance and r squared. The relationship between a dependent variable (GDP, say) and a set of explanatory variables (demand, interest rates, capital, unemployment, and so on) is expressed as a regression equation.
Industry:Economy
Products of economic activity that you can’t drop on your foot, ranging from hairdressing to websites. In most countries, the share of economic activity accounted for by services rose steadily during the 20th century at the expense of agriculture and manufacturing. More than two-thirds of output in OECD countries, and up to four-fifths of employment, is now in the services sector.
Industry:Economy
The true economic price of an activity: the opportunity cost. Shadow prices can be calculated for those goods and services that do not have a market price, perhaps because they are set by government. Shadow pricing is often used in cost-benefit analysis, where the whole purpose of the analysis is to capture all the variables involved in a decision, not merely those for which market prices exist.
Industry:Economy
Putting shareholders first; the notion that all business activity should aim to maximize the total value of a company’s shares. Some critics argue that concentrating on shareholder value will be harmful to a company’s other stakeholders, such as employees, suppliers and customers.
Industry:Economy
Financial securities, each granting part ownership of a company. In return for risking their capital by giving it to the company’s management to develop the business, shareholders get the right to a slice of whatever is left of the firm’s revenue after it has met all its other obligations. This money is paid as a dividend, although most companies retain some of their residual revenue for investment purposes. Shareholders have voting rights, including the right to vote in the election of the company’s board of directors. Shares are also known as equities. They can be traded in the public financial markets or held as private equity.
Industry:Economy
