Search results for "Market economy"
showing 10 items of 138 documents
International Exchanges in a Globalized World
2018
A reality today is that the economy, characterized by the expansion and development of financial mechanisms, cannot be conceived without the stock exchange: the real economy is reflected in the trend of stock, and, in turn, the stock can influence – good or bad – the economic life. Thus, by the rise of globalization, as instruments of capital accumulation, stock exchange has become the most effective way of targeting the capital available in the economy to the most profitable use. The market will determine which companies will be funded and what is the cost of their capital. The decisive factor is the efficiency with which companies use this capital. In this way, international stock markets…
Entry in a psychically distant market:
2008
Summary This paper investigates the market entry and entry mode choice of eight small and medium-sized Finnish software firms in the Japanese market. The findings in this study reveal that, despite of the psychic distance between Finland and Japan, most of the firms entered Japan at a very early stage of their internationalization process by using direct entry modes. This was mainly due to the market size, sophisticated industry structure, and requirements for intensive cooperation with the customers during the sales process. The firms were able to overcome psychic distance by hiring local employees and western managers who already had working experience in the Japanese market. This finding…
FinTech in Latvia: Status Quo, Current Developments, and Challenges Ahead
2021
FinTech has been in the focus of discussion for quite some time. However, the market share of FinTech companies is still relatively small compared to that of more traditional financial services. The purpose of this paper is to analyse the status quo, current developments, and challenges ahead for the Latvian FinTech sector. We combine three analyses: a political and legal, economic, social, and technological environment (PEST) analysis
Sectoral Transformations in Neo-Patrimonial Rentier States: Tourism Development and State Policy in Egypt
2007
This article challenges claims that liberalising state regulated markets in developing countries may induce lasting economic development. The analysis of the rise of tourism in Egypt during the last three decades suggests that the effects of liberalisation and structural adjustment are constrained by the neo-patrimonial character of the Egyptian political system. Since the decline of oil rent revenues during the 1980s tourism development was the optimal strategy to compensate for the resulting fiscal losses. Increasing tourism revenues have helped in coping with macroeconomic imbalances and in avoiding more costly adjustment of traditional economic sectors. Additionally, they provided the p…
Drastic innovation reduces firms’ incentives to create divisions
2020
I study a game in which two firms create independent divisions, then they choose whether to do R&D so as to reduce their divisions’ marginal costs, and then the divisions compete in the market. I provide necessary and sufficient conditions under which the game has an equilibrium in pure strategies, and I show that the game has an equilibrium only if each firm threatens that if the rival creates more divisions it will use R&D to foreclose the market. The case we find in the literature, in which firms flood the market with their divisions, should happen only in industries with low returns to R&D.
Growth and sustainability of agricultural systems: the case of Sicilian wine-growing farms
2016
International audience; The Sicilian wine-growing sector is characterised by the presence on the one hand of many small enterprises that limit their activity to the first stage of the supply chain (field production) and on the other of few enterprises that adopt a strategy of total vertical integration, from the production to the sale of wine. The first group of enterprises operates in a competitive market and in many cases with marginal revenues that are lower than marginal costs, leading entrepreneurs to abandon the activity of grape production. The second group operates in an oligopolistic market and it is able to compete in an international market. Findings reveal that competitive advan…
The application of the Market Economy Investor Principle to assess the existence of economic advantage in case of differentiated airport charges of t…
2019
The commercial aviation market is one of the fastest growing and most liberalised sectors of the economy in the EU. Development of low cost carriers changed the aviation world as regional airports experienced a boost of traffic and prospects of their financial sustainability. On the other hand, the expansion of low cost carriers in the EU airports resulted in many complaints from full service airlines. This resulted in the development of case law, both at the Commission and The Court of Justice of the European Union (CJEU) level. According to the case law, price differentiation of airport charges is not considered as granting of economic advantage to the particular undertaking if a market e…
Expanding possibilities for commodification
2016
The Effects of COVID-19 on the Rent-a-Car Industry
2021
Doubtless, COVID-19 has accelerated an economic financial crisis since 2008, affecting seriously not only the tourism industry but the global commerce. Governments have adopted different positions and programs to mitigate the economic aftermath of COVID-19. As never before in its history, tourism has been placed between the wall and the deep blue sea. Although the interests and studies evaluating the impact of COVID-19 have captivated the attention of countless scholars, less attention was given to the rent-a-car industry, which occupies a central position in the tourist system. As substitute competitors of train, bus, and airplanes, the rent-a-car organizations seem to be a quintessential …
The Rise and Fall of Business Firms: A Stochastic Framework on Innovation, Creative
2021
© 2020, Cambridge University PressThe book ‘The Rise and Fall of Business Firms: A Stochastic Framework on Innovation, Creative Destruction and Growth’ by S.V. Buldyrev, F. Pammolli, M. Riccaboni a...