Month: October 2020

Income approach Expenditure approach Output/Value Added approach   The Income Approach: Each time something is produced and sold someone obtains income from those activities/transactions. More precisely, each unit of expenditure will find its way partly into wages/salaries, profits, interest and Read More …

Increased cost of public debt servicing – redemption of treasury bills and bonds by the government involves paying back the principle sum plus interest. Non-performing loans/bad debts arising from existing loan agreements. This tends to cripple the liquidity status of Read More …

Credit Management performance standards – eg by banks and other financial institutions. Credit management efficiency levels determine the size of non-performing loans and bad debts, which tend to force banks and other lending institutions to readjust and try to cushion Read More …

Combination of features from both perfect competition and monopoly; this compromise between monopoly and perfect competition takes the form of many firms producing differentiated and highly substitutable products – product differentiation could be in terms of packaging designs, colour, brand Read More …

Increasing the budget provisions to the security/defence machinery of peace keeping missions; the sale of arms to war torn countries should be brought into focus in International Law in form of crime against humanity. Widening the scope of bilateral and Read More …

Impact of economic integration – Loss of tax revenue to governments initially in form of import duties. The infant industry argument – dumping of foreign goods tends to reduce the industrial development potential in the country of destination. Similarity of Read More …