BOYAN JOVANOVIC New YorkUniversity The Diversification of Production produce more than one product. In this sense their production is diversified‚ or horizontally integrated. This paper addresses two questions. First‚ why have firms become more diversified over the past century? And second‚ why are diversified firms more oriented toward research and development (R&D) than nondiversified firms? I tackle these two questions under the assumption that a firm diversifies to maximize its efficiency
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America‚ lasting until it was finally extinguished on the brink of the 19th century. Unlike other revolutions‚ which primarily focused on political changes‚ the Industrial Revolution created technology‚ developed social changes and expanded the global economy. However‚ the effects of the Industrial Revolution varied from country to country. For instance‚ according to the article‚ “The Industrial Revolution outside the West”‚ written by Peter N. Stearns‚ Russia began importing manufacturing goods from Britain
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The New Deal was one factor which assisted in bringing the United States through the Great Depression. However‚ a plan like the New Deal costs money and changes the economy going forward. Banking Act In 1933‚ one of the first steps the New Deal took was making sure the banks in America were solid and safe. Click and drag to move Banks are where all money originates with Americans. Loans (home‚ car‚ business‚ school) all go through banks. To gain the confidence of American investors‚ the
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INTRODUCTION Globalisation implies integration of all the economies of the world. The global economy also comprises of global financial system. Global financial crisis however‚ is turmoil in the world financial system caused due to some illogical reasons and mismanagement by the financial institutions. The global financial crisis basically reflects a combination of three-factors which marks the worsened situation weakening balance sheets of financial institutions‚ continuous fall in asset prices
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increase in global business activities by transnational corporations (TNCs) because of the changing international political and economic environment. Foreign direct investment and market selection decisions made by the multinational enterprises directly affect the organization performance which plays an important role in economic development patterns and international flow of technology‚ knowledge‚ good and capital (Luo and Park‚ 2001). The TNCs need to be cautious before they make a selection from the
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Discuss how the provinces affected the general Roman economy. An empire with the extent of Rome could have not been successful if it had not been for the great discipline in organizing her provinces. The power of roman economy based on farming and trade. Both two factors were interconnected with business of the provinces. Roman empire enjoyed a great free internal market around the meditation sea‚ where most of her provinces located. This hub of business had a center which was the great city of
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interconnectivity. And it came close to triggering several other literal explosions. Global economy changed abundantly because of the cold war. Fighting broke out in many developing countries‚ stunting the growth of their economy‚ and widening the gap between the poor and rich. Other developed countries spent exorbitant amounts of money stockpiling weapons. Although the cold war did not have all good effects on the economy‚ it did lead to more international trade. Some corporations started to become established
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Government spending fails to stimulate economic growth because every dollar Congress "injects" into the economy must first be taxed or borrowed out of the economy. Thus‚ government spending "stimulus" merely redistributes existing income‚ doing nothing to increase productivity or employment‚ and therefore nothing to create additional income. Even worse‚ many federal expenditures weaken the private sector by directing resources toward less productive uses and thus impede income growth. Spending-stimulus
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The stock market crash of October 29‚ 1929 provided a dramatic end to the economy. During the 1930’s‚ Henry Ford amazed the industry by offering a daily wage of $5. This put a job at The Ford Motor Company in high demand. This wage was far above what anyone else offered. By paying high wages‚ it attracted the highest level of labor productivity
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The Black Death was and still is a very deadly disease. There were many effects it had on the trading economy. Also‚ “The Black Death” is still being carried around today‚ but it is very rare. The Black Death spread as quickly as it did because Europe was becoming richer‚ and trade was widespread. The Black Death had many names like “The Black Plague‚” but one of the less common names was Zoonosis. Zoonosis is a word people used for all sorts of life threatening diseases. They used zoonosis so people
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