Internal Devaluation – where a country seeks to regain competitiveness through lowering wage costs and increasing productivity and not reducing the value of the exchange rate. A devaluation of the currency is a decision to allow a currency, in a fixed or semi-fixed exchange rate, to decrease in value. Devaluing the currency means that the …
Definition of Oligopsony occurs when a few firms dominate the purchase of factors of production. This means that the few firms have considerable market power in paying low prices for inputs.
SWOT analysis is a method to analyse the existing position of a firm and how it is likely to perform in the future S- Strengths of firm W- Weakness of firms O – Opportunities T – Threats Example, Waterstones booksellers Strengths Established as premier book retailer in UK Good distribution network Prime retail location in …
We face multiple housing crises all at the same time. Mortgage rates are soaring, yet renters face a broken market for years with rising rents and a shortage of properties. Buying is out of reach for many, but renting is just as bad. There is a growing division between an elder generation who have paid …
The budget deficit is the annual amount the government has to borrow to meet the shortfall between current receipts (tax) and government spending. Net borrowing for the UK 2021/11 is £151.8bn or 14.8% of GDP [OBR – J511] National debt or public sector net debt – is the total amount the government owes – accumulated …
Definition: The product life-cycle (PLC) refers to the different stages a product goes through from introduction to withdrawal. The product life-cycle refers to a likely pathway a product may take. It has implications for the marketing strategy of a firm as it seeks to introduce, grow and maintain market share. In this case, the product …
Readers Question: what are the pros and cons of price control? Summary Price controls can take the form of maximum and minimum prices. Price controls can also be used to limit price increases as a way to try and reduce the rate of inflation. Maximum prices can reduce the price of food to make it …
The fundamental economic problem is the issue of scarcity but unlimited wants. Scarcity implies there is only a limited quantity of resources, e.g. finite fossil fuels. Because of scarcity, there is a constant opportunity cost – if you use resources to consume one good, you cannot consume another. Therefore, an underlying feature of economics is …