Finance General Faqs

What kind of market structure is the automotive industry?
There are many ways to describe the market structure of the automotive industry. Here are two: One of heterogeneous buyers makes up the population and nearly homogeneous sellers. This means that everyone (the population) needs a car (bec...... More »
What are the advantages of free market economy?
There are many advantages to a free market economy. They range from the moral issues to the practical issues. We will deal mainly with the practical ones. Unprecedented innovation - Free markets are wrought with inventions and the capit...... More »
What are the disadvantages of mixed economy system?
The disadvantages of a mixed economy really depend on how "mixed" it is. For instance, if it is mixed more towards a free-market, there is little regulation (some may see this as a good, though), but if it is mixed more towards a command economy, ...... More »
What was the theory of mercantilism?
Mercantilism was the economic philosophy underlying English colonial policy. The object of mercantilism was to increase the wealth of the Mother County (Great Britain) in gold and silver. To accomplish that goal, a favorable balance of trade was d...... More »
Why was Vietnam divided into two countries?
The north was communist, the south was capitalist, which was determined by their supporter states, the USSR and the US after independence in 1954, and however, this division was only meant to be temporary, with elections to re-unify the country. ...... More »
What can you do about tourists use of natural resources?
Countries have to legislate so that new tourist developments satisfy environmental safeguards. All development must be sustainable. 1) There must be no pollution into waterways and oceans. 2) Garbage and sewage must be collecte...... More »
What are the various uses for break-even analysis?
Such analysis allows the firm to determine at what level of operations it will break even (earn zero profit) and to explore the relationship between volume, costs, and profits. It helps the management that at current costs of products how many num...... More »
What still matters in strategic management lies in the value of planning?
There is an old saying that if you fail to plan, you are planning to fail. By acting on this, strategic management actually gives the organization direction, a sense of identity and unity towards what the business goal. Therein lays the continued ...... More »
What is the importance of strategic management towards the success of a business?
Strategic management used to play a different after the Second Word War. Strategic plans of the past usually range 3 to 5 years. Some companies could even have plans for 10 good years. That is not possible today given rapid evolution of our societ...... More »
What are the effects of globalization on Indian industry?
Indian industry has progressed a lot due to globalization. A lot of improvement has been seen in Indian industry. ...... More »