--%>
Assignment Help - homework help

Analyzing regions leading transaction costs

Analyze at least 3 possible regions for the industry which could lead to transaction costs, explaining each in detail.

E

Expert

Verified

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.

   Related Questions in Macroeconomics

  • Q : Economics I help with part 2 and the 4

    I help with part 2 and the 4 part question.

    		•
  • Q : Speculators actions when they are right

    When speculators are right, their actions: (1) Cause already depressed prices to drop/fall further. (2) Raise the risks to another firm of doing business. (3) Prevent price refuses from their peaks. (4) Reduce both the phase of prices and their volatility across time.

    		•
  • Q : Employment Effect Fiscal policy

    Fiscal policy measures used for achieving full-employment level of output and price include increase in the government expenditure and cut in tax rates. A cut in tax rates eliminates only the adverse effect of high tax rates, whereas an increase in government expendit

    		•
  • Q : Invesstment multiplier what can be the

    what can be the minimum value of investment multiplier?

    		•
  • Q : How Bank rates control the credit How

    How Bank rates control the credit? Answer: Bank rate is the rate of interest at which the Central bank lends to Commercial banks. By increasing the bank rate centra

    		•
  • Q : Control of Inflation Economists agree

    Economists agree that inflation beyond a moderate rate is undesirable as it can often prove disastrous and therefore, it must be kept under control. Economists agree also that an appropriate mix of fiscal and monetary policies can be helpful in controlling inflation.

    		•
  • Q : Supply law and it's factors State the

    State the Law of supply and explain the factors that affecting supply of commodity

    		•
  • Q : How central bank reduce the

    Describe any two measures by which a Central Bank can attempt to decrease the gap. Answer: Central bank can decrease this gap by adopting two measures illustrated b

    		•
  • Q : Supply use two market diagrams to

    use two market diagrams to explain how an increase in state subsidies to public colleges might affect tuition and enrollments in both public and private colleges?

    		•
  • Q : Stock option price-Strike price-Put and

    What do you mean by the following terms: a stock option price, strike price and what are a put and a call?What is the merits or demerits of purchasing stock options over stocks? What function do Mutual Funds execute with Stock Market

    		•