Analyzing regions leading transaction costs
Analyze at least 3 possible regions for the industry which could lead to transaction costs, explaining each in detail.
Expert
There are many areas to determine and influence on the transaction costs. Some of the areas are uncertainty in many levels, organizational capabilities noise regulation and inter organizational exchanges In the inter organizational exchange, the transaction cost plays a vital role. It is used in the firms who horizontally link to cooperate. Always the decisions depend on various aspects of the situation where the position of the transaction cost is getting influenced. If the transaction costs become very high, for the inter organizational exchange another third party would make the resolution. The variations in the transaction costs are done by the empirical analysis. Actually the transaction cost is reduced by the perpendicular integration. Many big firms have capabilities to handle the transaction costs. This way helps them to use the financial assets. Thus the horizontal and vertical integrations influence on the levels of the transaction costs. The investment capacity, facilities given in the airplanes, passenger payments are also possible for the influence. They may follow the rules and regulations of the foreign government. There is also the possibility of higher risks. If any problem arises in the voluntary cooperation or any merging, there is possibility of increase in the transaction costs. This ultimately results in the increasing transaction costs. The transaction costs have influence on the free market mechanisms. There are many aspects to be considered in the transaction costs and the market mechanisms. The regulatory, judicial, and political mechanisms are possible to failure due to the high transaction costs. Noise is also considered for regulation in determining the transaction costs. But in case of the larger firms they never consider the costs increase as they are particular about the services and quality given to the customers. Thus the transaction costs have influence on the inter organizational change, higher levels of uncertainty and organizational capabilities.
What points out zero primary deficits? Answer: Zero primary deficits signify that the government has to resort to borrowings simply to make interest payments.
If one party to a transaction deceives another party prior to a deal be reached, this is termed as: (i) Bad luck. (ii) Adverse selection. (iii) Moral hazard. (iv) Polyandry. (v) Rational ignorance. Please someone suggest me the rig
How prices allocate resources?
What are the strength and weakness of using per capital national income? give explained answer for query
Illustrate whether output generated for self consumption is comprised or not comprised in the value of output? Answer: The output generated for self consumption is
For the firm, the major goal of profit sharing plans is to:
Assume that you receive $18 worth of “jollies” (that is, satisfaction, utility or pleasure) from the very first hole of golf played on a particular day, and that your extra jollies from succeeding holes drops $1 for each and every hole played. You should p
What are the “powers of the Federal Reserve
Write a 3 page paper using microeconomics concepts as a primary mode of analysis. Your paper should use 1.5 line spacing, a 12 point font, and 1inch margins. Proof read your paper. You will lose 5 percentage points per day for each day past the
18,76,764
1943698 Asked
3,689
Active Tutors
1439243
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!