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 is another name of macroeconomics? Answer: Income theory
What do you mean by the term Equilibrium? Also state its proper definition.
Methadone programs for addicts are intended at reducing illegal heroin traffic through: (i) decreasing the heroin supply. (ii) increasing the price of heroin. (iii) decreasing the demand for heroin. (iv) executing drug dealers. Hel
If households become more willing to hold less cash and more stocks or bonds, the
Most economists believe such that people increase an activity when they perceive the expected additional benefits as exceeding the expected extra cost, but decrease their level of an activity whenever they believe the benefits from the last few units of the activity a
Between 1961 and 2007, the rising share of the Canadian population in paid employment contributed to rising GDP per person. But suppose that the share of the Canadian population in paid employment had remained constant between 1961 and 2007. What would Canadian GDP pe
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?
Illustrations of macroeconomic aggregates would NOT consist of the: (1) tax responsibilities of a family. (2) unemployment rate. (3) level of national income. (4) supply of money. (5) rate of inflation. Can someone
What is Demand schedule and how it is associated to demand curve?
10 US dollars are exchanged for 500 Indian rupees. Calculate the exchange rate for Indian currency? Answer: $1 = 500/10 = Rs.50, that is, $1 = Rs. 50
18,76,764
1948220 Asked
3,689
Active Tutors
1439017
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!