In a market economy, like the one described in the question, there is the potential to achieve efficiency in production. This is because producers can choose what they produce and can focus on the products they are good at. This can help with economies of scale and efficiency.
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Many companies avoid unrelated diversification as a general business rule because of the lack of synergy that exists. When you have related diversity, you can more easily integrate your company brand, philosophies, resources, and partnerships to take full advantage.
<h3>Why would a company use unrelated diversification?</h3>
The benefits of unrelated diversification are rooted in two conditions:
(1) increased efficiency in cash management and in the allocation of investment capital and
(2) the capability to call on profitable, low-growth businesses to provide the cash flow for high-growth businesses that require significant infusions of cash.
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Answer:
We pay taxes to the government as a way to pay for our daily life. Taxes can let you get credits on your health insurance, having safe roads, free public education and etc.
Explanation:
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Answer:
an increase in prices.
Explanation:
When there is too much money in the economy due to high oil prices, prices tend to go up because surplus cash is pursuing few goods.
It is easy in this scenario to have prices double for some goods.
This is why where in areas where there is economic boom all prices go up from real estate to petty goods. This trend becomes the norm as residents take new price regime as normal.
