Comparative Advantage
Comparative advantage is an economic term that refers to an economy’s ability to produce goods and services at a lower cost than trade partners. The law of comparative advantage describes how, under free trade, an…
Topics: Introduction to Business
Trade agreement
Trade agreements are the product of negotiations between two or more sovereign countries that determine acceptable exchange terms for goods and services between the two parties. As a sovereign country, each of the nearly 200…
Junk Bond
Junk bonds are fixed-income securities that are rated below the investment-grade by one or more major bond rating agencies. In contrast to low-risk, investment-grade bonds, junk bonds are generally not ideal for long-term investments, and…
Commerce Clause
The Commerce Clause is a grant of power to Congress, not a restriction on the power of the states to control the economy. Commerce Clause provision of the United States Constitution (Article 1, Article 8)…
Ethical Consumerism
Ethical consumerism is the idea that consumers should be able to pursue a range of ethical values and policies and pursue a variety of ethical purposes through how they spend their money in the market.…
Devaluation
A devaluation is a tool used by the monetary authorities to improve the country’s trade balance by increasing exports at a time when trade deficits can be a problem for the economy. Countries that have…
Conglomerate
Consolidation is a very large corporation or organization, consisting of several joint ventures, it is formed by a takeover or merger. It is a multi-industry organization, a combination of multiple business entities operating in completely…
What is Factoring?
Factoring is a financial service where a business entity sells its bill receivables to a third party in exchange for a discount to raise funds. A business sometimes uses the assets it owes to meet…
What is Manufacturing?
Manufacturing is a product made by hand or by a machine which is a business sale to a customer upon completion. These include all food, chemicals, textiles, machines, and equipment. It includes all the refined…
Service and Construction Industry
Service industry and Construction industry Service industries are involved with proving service of professionals. It is a type of business that provides services to customers rather than producing a product. It is an industry in…
Load More