The process by which ideas are generated, evaluated, directed and turned into products is called the “new product development process.” A new product follows certain phases or stages before it is launched. Some of these phases or stages include:
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Product life cycle is the concept that is based on the idea that any product or service undergoes certain stages before disappearance. It enables a marketing manager examine the marketing mix of a particular product or basket of product in terms of its position in the life cycle.
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Today we look at some activities that are considered illegal or an abuse to the integrity of financial markets. Such activities include insider dealing or trading, improper disclosure, misuse of information, dissemination, manipulating transactions and so on. In the United States of America, financial markets are strictly monitored by regulatory bodies such as the securities and exchange commissions (SEC), Financial Industry Regulatory Authority (FINRA), Federal Deposit Insurance Corporation (FDIC), Consumer Financial Protection Bureau (CFPB), Commodity Futures Trading Commission (CFTC), Federal Reserve System (“Fed”), Office of the Comptroller of the Currency (OCC), and National Credit Union Administration (NCUA). Activities such as those listed above are considered illegal and punishable by law based on the Jurisdiction of the various financial regulated bodies listed above.
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It should be noted that individuals engage in economic activities and keep records of their business transactions. Also, government engages in economic activities and keeps record of their transactions. Such record keeping by the government leads to the formulation of national income figures. Hence, national income is the summary of a country’s economic performance by measuring the aggregate income and output of goods and services within a specified period of time usually one year.
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As a growing child, I was always of the idea that people need not purchase insurance premiums, that they were just in the business to cart away our money. My perception of it was that purchasing insurance is for mitigating risk, and the occurrence of the said risk is not certain, therefore if the risk doesn’t occur within the stipulated period, then the insurance company has no obligation to pay you back the money spent on the insurance premium. So I thought to myself, “Why then do we need to pay for insurance”. A situation that occurred about 6 years ago changed my view of the subject matter.
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Hi people, the above topic came up in my 100 level macroeconomics course, so I said I should take time out to explain it to you. We start with absolute advantage. A country is said to have an absolute advantage in the production of a good when it is more efficient than another country in the production of the said good. i.e when it can produce more of a particular good with a given amount of resources than another country. It is a fairly common situation for one country to be more efficient than another in the production of a particular good; absolute advantage is evident when a country has the lowest cost per unit in the production of a certain good as compared with other countries producing the same good.
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Hedging is a means of reducing risk. Hedging involves coming to an agreement with another party who is prepared to take on the risk that you would otherwise bear. The other party may be willing to take on that risk because he would otherwise bear an opposing risk which may be “matched” with your risk; alternatively, the other party may be a spectator who is willing to bear the risk in return for the prospect of making profit. In the case of interest rates, a company with variable rate loans clearly faces the risk that the interest rate would increase in the future as a result of changing market conditions which cannot be predicted.
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In attempting to sell to another country, a firm may face various trade restrictions. These include”
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In a currency swap, the parties agree to swap equivalent amounts of currency for a period. This effectively involves the exchange of debt from one currency to another.
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There are basically two ways in which exposure to risk may be reduced. They are:
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