When a few FIRMS dominate a market. Often they can
together behave as if they were a single MONOPOLY, perhaps by forming a CARTEL.
Or they may collude informally, by preferring gentle NON-PRICE COMPETITION to a
bloody PRICE war. Because what one firm can do depends on what the other firms
do, the behaviour of oligopolists is hard to predict. When they do compete on
price, they may produce as much and charge as little as if they were in a
market with PERFECT COMPETITION.
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Saturday, September 15, 2012
Thursday, September 13, 2012
Financiaal Terms-4
What is foreclosure?
Foreclosure is a legal procedure whereby property pledged as security for a debt is sold by the lender to pay the debt in the event of default in repayment.
Foreclosure is a legal procedure whereby property pledged as security for a debt is sold by the lender to pay the debt in the event of default in repayment.
What is VAR?
VAR, Value Added Risk is a single number (currency amount) which estimates the maximum expected loss of a portfolio over a given time horizon (the holding period) and at a given confidence level.
VAR, Value Added Risk is a single number (currency amount) which estimates the maximum expected loss of a portfolio over a given time horizon (the holding period) and at a given confidence level.
What is Securitization?
A process by which a single assets are transferred from the balance sheet of the originator (bank) to a bankruptcy remote SVP (trust) in return for an immediate cash payment.
A process by which a single assets are transferred from the balance sheet of the originator (bank) to a bankruptcy remote SVP (trust) in return for an immediate cash payment.
Tuesday, September 11, 2012
Financial Terms-3
Absolute advantage
This is the simplest yardstick of economic performance. If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers. Being the best at something does not mean that doing that thing is the best way to use your scarce economic resources. The question of what to specialise in--and how to maximise the benefits from international trade--is best decided according to comparative advantage. Both absolute and comparative advantage may change significantly over time.
This is the simplest yardstick of economic performance. If one person, firm or country can produce more of something with the same amount of effort and resources, they have an absolute advantage over other producers. Being the best at something does not mean that doing that thing is the best way to use your scarce economic resources. The question of what to specialise in--and how to maximise the benefits from international trade--is best decided according to comparative advantage. Both absolute and comparative advantage may change significantly over time.
Saturday, September 8, 2012
Finacial Terms-2
Arbitrage pricing theory
This is one of two influential economic theories of how assets are priced in the financial markets. The other is the capital asset pricing model. The arbitrage pricing theory says that the price of a financial asset reflects a few key risk factors, such as the expected rate of interest, and how the price of the asset changes relative to the price of a portfolio of assets. If the price of an asset happens to diverge from what the theory says it should be, arbitrage by investors should bring it back into line.
This is one of two influential economic theories of how assets are priced in the financial markets. The other is the capital asset pricing model. The arbitrage pricing theory says that the price of a financial asset reflects a few key risk factors, such as the expected rate of interest, and how the price of the asset changes relative to the price of a portfolio of assets. If the price of an asset happens to diverge from what the theory says it should be, arbitrage by investors should bring it back into line.
Wednesday, September 5, 2012
Financial Def--
Autarky
The idea that a country should be self-sufficient and not take part in international trade. The experience of countries that have pursued this Utopian ideal by substituting domestic production for imports is an unhappy one. No country has been able to produce the full range of goods demanded by its population at competitive prices. Indeed, those that have tried to do so have condemned themselves to inefficiency and comparative poverty, compared with countries that engage in international trade.
The idea that a country should be self-sufficient and not take part in international trade. The experience of countries that have pursued this Utopian ideal by substituting domestic production for imports is an unhappy one. No country has been able to produce the full range of goods demanded by its population at competitive prices. Indeed, those that have tried to do so have condemned themselves to inefficiency and comparative poverty, compared with countries that engage in international trade.
Friday, August 24, 2012
Forbes World's Most Powerful Women 2012
The annual Forbes ranking showcases
women making a difference in the realms of politics, business, finance,
entertainment and philanthropy.
1. Angela Merkel, Chancellor, Germany
2. Hillary Clinton, Secretary of State, United States
3. Dilma Rousseff, President, Brazil
4. Melinda Gates, Co-Chair, Bill & Melinda Gates Foundation
5. Jill Abramson, Executive Editor, New York Times Co.
6. Sonia Gandhi, President, Indian National Congress, India
7. Michelle Obama, First Lady, United States
8. Christine Lagarde, Managing Director, International Monetary Fund
9. Janet Napolitano, Secretary, Department of Homeland Security, United States
10. Sheryl Sandberg, COO, Facebook
11. Oprah Winfrey, Entrepreneur, Personality
12. Indra Nooyi, Chairman and CEO, PepsiCo
13. Irene Rosenfeld, Chairman and CEO, Kraft Foods
14. Lady Gaga, Musician, Philanthropist
15. Virginia Rometty, President and CEO, IBM
16. Cristina Fernandez de Kirchner, President, Argentina
17. Ursula Burns, Chairman and CEO, Xerox
18. Meg Whitman, CEO, Hewlett-Packard
19. Aung San Suu Kyi, Chair and Parliamentarian, National League for Democracy, Burma
20. Maria das Graças Silva Foster, CEO, Petrobras-Petróleo Brasil
21. Marissa Mayer, CEO, Yahoo
22. Anne Sweeney, Co-Chair, Disney Media Networks, and President, Disney/ABC Television Group, Walt Disney
23. Diane Sawyer, Anchor of World News, ABC, Walt Disney
24. Angela Braly, CEO, WellPoint
25. Susan Wojcicki, Senior Vice President, Google
1. Angela Merkel, Chancellor, Germany
2. Hillary Clinton, Secretary of State, United States
3. Dilma Rousseff, President, Brazil
4. Melinda Gates, Co-Chair, Bill & Melinda Gates Foundation
5. Jill Abramson, Executive Editor, New York Times Co.
6. Sonia Gandhi, President, Indian National Congress, India
7. Michelle Obama, First Lady, United States
8. Christine Lagarde, Managing Director, International Monetary Fund
9. Janet Napolitano, Secretary, Department of Homeland Security, United States
10. Sheryl Sandberg, COO, Facebook
11. Oprah Winfrey, Entrepreneur, Personality
12. Indra Nooyi, Chairman and CEO, PepsiCo
13. Irene Rosenfeld, Chairman and CEO, Kraft Foods
14. Lady Gaga, Musician, Philanthropist
15. Virginia Rometty, President and CEO, IBM
16. Cristina Fernandez de Kirchner, President, Argentina
17. Ursula Burns, Chairman and CEO, Xerox
18. Meg Whitman, CEO, Hewlett-Packard
19. Aung San Suu Kyi, Chair and Parliamentarian, National League for Democracy, Burma
20. Maria das Graças Silva Foster, CEO, Petrobras-Petróleo Brasil
21. Marissa Mayer, CEO, Yahoo
22. Anne Sweeney, Co-Chair, Disney Media Networks, and President, Disney/ABC Television Group, Walt Disney
23. Diane Sawyer, Anchor of World News, ABC, Walt Disney
24. Angela Braly, CEO, WellPoint
25. Susan Wojcicki, Senior Vice President, Google
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