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Q: Which U.S. corporation held a large stake in the economies of several Latin American nations during the 1920s and 1930s?
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Continue Learning about Economics

What is a mixed economy based on?

A mixed economy is based on several different types of economies. For example the mixed American economy is a combination of socialism and capitalism.


Why did Western European economies grow faster than Eastern European economies after World War 2?

There were several reasons. Central planning under communism, especially as dictated by Moscow, was less efficient than capitalism at overcoming the damage left by the war and restoring growth. The USSR did not provide sufficient funding to their satellite nations. Under pressure from Stalin, Eastern European countries refused aid from the United States under the Marshall Plan.


What is a result of worldwide economic interdependence?

Because national economies around the world are interdependent, a recession in one can cause a chain reaction of recessions or contractions in the rest of the world's national economies. This is why the Great Recession in the United States (2008-2010) led to the Euro Crisis (2010-2012, probably further). The converse is also true - a recovery in one economy can bolster and support national economies around the world; this is also happening as the United States and China got their feet back underneath them, the economies of Australia and several European countries also stabilized.


What does capitalism economy mean?

A capitalist economy would be an economy that is based solely on private ownership of capital and of the means of production. This is just a vague statement because there are several different kinds of capitalist economies. E.g. Free Market, Social Market and several others.


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.

Related questions

What US corporation held a large stake in the economies of several Latin American nations during the 1920s and 1930s?

The United Fruit Company held a large stake in the economies of several Latin American nations during the 1920s and 1930s.


In what ways was 1492 a turing point in global history?

The war started the dissemblance of the European Colonial Empires, wrecked the economies of several nations, jump started the Economies of others, revolutionized warfare (this was the first war where tanks were used and also aircraft in a combat role)


Does British Isles have economy?

As it consists of several countries, it has several economies.


What is a mixed economy based on?

A mixed economy is based on several different types of economies. For example the mixed American economy is a combination of socialism and capitalism.


Which countries belonged to the British empire in 1750?

In 1750, the British Empire held lands in what is now Canada, the US, several Caribbean island and Central American nations, several African nations, Bangladesh/India, and Ireland.


What are the advantages of one corporation owning several hotels?

you can pay less in having one corporation in owning several hotel


5 native American tribes?

There were several native American tribes that lived in America. Five of the tribes were the Cherokee, Creek, Seminole, Chickasaw, and Choctaw.


Two countries with market based economies?

There are several countries that have a market based economies. France and England are two countries that have this type of economy.


In what ways did foreign events affect the financial downturn?

Foreign events affected the financial downturn of the United States in several ways. The foreign events affected the United States and world economies is through war and the trade embargo with foreign nations.


Why did Wilson send several thousand U.S. soldiers across the Mexican border in 1916?

South American nations had refused to arrange peace talks.


When was Travels into Several Remote Nations of the World - album - created?

Travels into Several Remote Nations of the World - album - was created in 2009-01.


Examples of multinational corporation?

A Multi National Corporation (MNC) or Trans National Corporation (TNC), also called multinational enterprise (MNE), is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. The International Labour Organization (ILO) has defined "an MNC as a corporation that has its management headquarters in one country, known as the home country, and operates in several other countries, known as host countries".The first modern multinational corporation is generally thought to be the East India Company. Many corporations have offices, branches or manufacturing plants in different countries from where their original and main headquarters is located.Some multinational corporations are very big, with budgets that exceed some nations' GDPs. Multinational corporations can have a powerful influence in local economies, and even the world economy, and play an important role in Internaion Corporations are:Pepsi Co.Procter & GambleLever Brothers etc.