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How can economies of scale be achieved through vertical integration?
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What is globalization in economics?
It is the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.
Which of these is created through division of labor and job specialization?
integration
The control of the money supply is achieved through?
The control of money supply can be achieved with two main concepts. One is to lower interest rates and the other is to control spending.
What are external economies?
Internal economies of scale arise when firms increase their scale of production. Hence, they incur lower average costs of production, either through specialization or other factors. When average costs fall, giving the price of the good to be constant, profit margins of these firms will be increased. Thus, the individual firm benefits from internal economies of scale. External economies of scale arise when all firms in an industry experience decreasing average costs of production, which can be due to economies of concentration, information and disintegration. Unlike internal economies of scale, external economies of scales independent on the size of the individual firms in the industry as both small and large firms benefit from it. Secondly, internal and external economies of scale depend on several factors. Internal economies of scale arise due to technical economies, which states that as a firm increases its scale of production, it is able to delegate specific jobs to its workers. Hence, through specialization in a single job, the workers are able to improve their productivity through attaining higher levels of dexterity and skill through repeated practices. Thus when productivity per worker rises, the firm is actually producing a greater amount of goods and hence, the average cost of the good falls. Of course, internal economies of scale also depend on other factors, such as marketing economies, which basically states that a firm making bulk purchases on raw materials would be able to enjoy cheaper prices, such as financial economies, which states that as a firm increases its scale of production and need funds to buy more factors of production, it can get it from a bank at lower interest rates. This is because its larger assets and greater selling potential provides banks with greater security. And there are also less important factors such as risk bearing and managerial economies. External economies on the other hand, depend on mainly three different economies. As mentioned above, economies of concentration states that when firms in an industry are located close together, they can enjoy the pool of skilled workers and infrastructure provided by local colleges and the government respectively. Hence, through the provision of such valuable manpower and infrastructure, firms are able to attain lower average costs of production by employing these skilled workers with high productivity, or using the efficient road and communications networks to reduce transport and managerial costs.
How output and employment equilibrium is achieved through production in the classical theory?
equlibrium output and employment
What is a grand strategy growth?
Growth strategy is a corporate-level strategy that seeks to increase the level of the organisation's operations. This includes increasing sales revenues,number of employees and market share. Growth can be achieved through direct expansion,vertical integration,horizontal integration or diversification .
Vertical integration in the film industry?
Vertical integration in the film industry is a process through which the various steps of film production are controlled by a single company. This is aimed at empowering the company in the industry.
Who was the steel company ownership who built his company through vertical integration?
Andrew Carnegie
Who was the steel company owner built his company through vertical integration?
andrew carnegie
Does a holding company allow vertical integration?
The holding company allows a corporation, through its subsidiaries, to integrate both horizontally and vertically
What is globalization in economics?
It is the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, the spread of technology, and military presence.
What is an acrostic poem for globalization?
Generating Omnipresent Local and global integration Interconnected Zealous internationalism Aims to unite nations Tied through economies Interdependent Optimizing resources Networking across borders
What is expansion through integration?
== ==
What is the difference between globalization and integration?
Globalization refers to the interconnectedness and interdependence of economies, cultures, and societies globally. Integration refers to the process of linking individual components or entities to form a unified whole. In the context of globalization, integration often refers to the process of countries or regions coming together through agreements, alliances, or common policies to facilitate global trade and cooperation.
What are the benefits in regional integration to the Caribbean?
Regional integration in the Caribbean can lead to increased economic growth through improved trade opportunities and economies of scale. It can also enhance political cooperation and stability among member countries, as well as facilitate the sharing of resources and knowledge to address common challenges such as climate change and natural disasters. Additionally, regional integration can strengthen the region's voice in global affairs and negotiations.
What is The process by which social institutions are adopted on a global scales called?
The process by which social institutions are adopted on a global scale is called globalization. It involves the integration of economies, cultures, and societies across the world through the exchange of ideas, goods, and services.
What is a vertical line that passes through 7 and 2?
A vertical line that passes through 7 and 2 is your face.
