1 Elasticity of Demand The demand of any product depends on the pricing strategy being followed by the company as well as other factors like nature of product i.e. necessity or luxury‚ availability of substitutes‚ switching cost etc. If the product is a necessity usually it has an inelastic demand. Inelastic demand refers to the situation where one unit increase or decrease in the product’s price cause less than one dollar change in the units demanded of that product (Kreps‚ D. M. 1990). If product
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Foreign capital: The capital available to any country other than the domestic capital in order to finance any domestic purpose is called foreign capital. Need for Foreign Capital 1.Capital investment requirements – Since underdeveloped countries want to industrialize themselves within a short period of time‚ it becomes necessary to increase capital investment substantially. This requires a high level of savings. However‚ because of general poverty‚ the savings are very low. This creates a
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Capital One Financial Corporation 1. How is Capital One’s use of IT different from other mass customization strategies? Capital One uses IT through its information-based strategy (IBS) to “record‚ organize‚ and analyze data on the characteristics and behaviors of their customers‚” as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both assess the creditworthiness of potential cardholders through
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Foreign Direct Investment (FDI) FDI or Foreign Direct Investment is any form of investment that earns interest in enterprises which function outside of the domestic territory of the investor. Foreign direct investment is that investment‚ which is made to serve the business interests of the investor in a company‚ which is in a different nation distinct from the investor’s country of origin Benefits of Foreign Direct Investment One of the advantages of foreign direct investment is that it helps
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Private Foreign Investment in India August 1999 Authors: Suma Athreye‚ Manchester School of Management‚ England Sandeep Kapur‚ Birkbeck College‚ University of London‚ England Address for correspondence Sandeep Kapur Department of Economics Birkbeck College Gresse Street London W1P 2LL UNITED KINGDOM Telephone: Fax email 44 171 631 6405 44 171 631 6416 skapur@econ.bbk.ac.uk Abstract Private foreign capital‚ whose presence in Indian industry was long regarded with concern and suspicion
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Impact of Foreign Direct Investment and Trade on Economic Growth Shiva S. Makki The World Bank Agapi Somwaru Economic Research Service‚ USDA Contact Author: Shiva S. Makki Room MC 2-509‚ DECRS 1818 H Street‚ N.W. Washington‚ DC 20433 Phone: 202 458-8521; Fax: 202 522-0087 Email: smakk@worldbank.org ABSTRACT Foreign direct investment (FDI) and trade are often seen as important catalysts for economic growth in the developing countries. FDI is an important vehicle of technology transfer from
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VENTURE CAPITAL INVESTMENTS: SOME DESCRIPTIVE STATISTICS 1. Introduction The development of metropolitan areas is likely to depend‚ among other things‚ on the development of their entrepreneurial communities. However‚ our understanding of entrepreneurial communities worldwide is limited. In the following chapter‚ we begin to fill this gap by providing data on the development of entrepreneurial communities around the globe. Moreover‚ we provide data on the diffusion of venture capital in the
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The death penalty is something about which many people do not have a clear opinion. It is considered to be the punishment of execution‚ administered to someone convicted of a capital crime. Many people support the death penalty‚ while others wish for the death penalty to be abolished. My personal opinion on the death penalty is that it should be administered only in cases of certain crimes such as: serial murder‚ serial rape‚ and terrorism. Groups that support the death penalty often
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firm’s circle of senior managers in recent months. A num-ber of issues had been raised about the hur-dle rate used by the company in evaluating performance‚ and in setting the annual capital budget. Since the company was ex-pected to invest nearly $2 billion in capital Wall Street Daily News‚ January 9‚ 1996 projects in 1996‚ gaining closure and consensus on these issues had
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Large-scale investment inflow in the real sector of the economy is one of the defining conditions of forced industrial-innovative development of Kazakhstan. Given that currently the supply of domestic investors is not always able to meet the growing domestic demand for investment resources. Importance of foreign direct investment (FDI) takes place in this case. Decline in FDI flows is noticed in almost all groups of countries‚ but especially notable losses are in the advanced economies. According
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