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economicpoint.com

EconomicPoint

A place for the exchange of ideas and useful information about economics.

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EconomicPoint | economicpoint.com Reviews

https://economicpoint.com

A place for the exchange of ideas and useful information about economics.

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1

Asset Acquisition

https://economicpoint.com/asset-acquisition

Skip to main content. Tue, 10/22/2013 - 09:01. And acquisition is when one company takes over another an establishes itself as the new owner. It usually takes place through the buyout of the majority shares package. This implies the control of every asset of the sold company. The asset acquisitions strategy consists in the buyout of assets instead of shares. The buyer company doesn’t want to take control over the seller, it just want to acquire some assets he considers of value. You May Also Like.

2

Nominal Exchange Rate

https://economicpoint.com/nominal-exchange-rate

Skip to main content. Tue, 02/11/2014 - 08:09. The nominal exchange rate is defined as:. The number of units of the domestic currency that are needed to purchase a unit of a given foreign currency. For example, if the value of the Euro in terms of the dollar is 1.37, this means that the nominal exchange rate between the Euro and the dollar is 1.37. We need to give 1.37 dollars to buy one Euro. Fluctuations of the nominal exchange rate. Why does the exchange rate rise and fall? All buyers represent the de...

3

Natural Elements

https://economicpoint.com/natural-elements

Skip to main content. Thu, 04/17/2014 - 09:10. Natural elements are those elements than have been produced by nature, without the intervention of man. Natural elements can be grouped in:. We have to take into account that man can produce clons of plants or water made in a laboratory. These man made elements are not natural elements. You May Also Like.

4

Linear Production Function

https://economicpoint.com/linear-production-function

Skip to main content. Thu, 04/03/2014 - 07:11. The linear production function. Is the simplest form of a production function: it describes a linear relation between the input and the output. If the function has only one input, the form can be represented using the following formula:. For example, if a worker can produce 10 chairs per day, the production function would be:. This function can be represented in the following chart:. If the function has more than one input:. All inputs are perfect substitutes.

5

National Income

https://economicpoint.com/national-income

Skip to main content. Mon, 10/21/2013 - 09:30. National income is the sum of the incomes of the owners of the production factors, belonging to a specific nationality and during a specific period of time, usually one year. Income of labour: Salaries. Income of capital: Rents, interests, utilities and dividends. Income of land: Rent of the land. National income doesn’t include those incomes that doesn’t have the provision of a good or a service as a counterpart, like:. National income and national product.

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EconomicPoint

Skip to main content. Is an administrative process that consists in analyzing different strategies and courses of action, taking into account the present and future organizational environment. The business planning process defines:. A description of the company in the future, what needs it satisfies, its position in the market and in which it wants to convert the company. It focuses on the future. What the company is doing at this moment to achieve its objectives. It focus is on the present. Technical In...

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