Disbursement: Money paid out.
Economies of scalesavings achieved because an initial investment is spread out over increasing numbers of produced units: Economies of scalesavings achieved because an initial investment is spread out over increasing numbers of produced units is an economic term that means that a company may produce goods or services at a cheaper cost per unit when these goods or services are produced in large quantities. In such a case, a company would want to maximize production so as to minimize cost.
Market economy: An economy that relies chiefly on market forces to allocate goods and resources and to determine prices; a capitalistic economy.
Market failures: Most economists agree that a market economy in which all parties engage in voluntary transactions usually benefits society as a whole. In some cases, however, the market may lead to an inefficient distribution of resources; this is what we call a market failure. Market failures are often used as a reason to allow for government intervention in the economy.
Mergers and acquisitions: Mergers and acquisitions occur when two companies become one. When the largest company buys the smallest, an acquisition occurs; when the two companies are of equivalent size, a merger takes place. Many reasons can prompt a company to undertake a merger or acquisition. In the global economy, mergers and acquisitions are a good way for a company to expand its market and its operations in foreign countries.
Mores: Moral attitudes or habits.
Multinational corporation: A corporation that operates in more than one country.
Split-run edition: An edition of a magazine is one in which a foreign publisher puts some domestic advertising and domestic content in a magazine originally targeted at a foreign readership. Time Magazine and Sports Illustrated, two American magazines, both have popular split-run editions in Canada. In their Canadian editions, Time and Sports Illustrated keep almost all of the content of the original edition but add advertisement, and occasionally articles, aimed at Canadian readers.
The Interbrand valuation method: Under the Interbrand model, brand value is a function of its earnings and its strength. The brand earnings are a measure of potential, expected profits, and the brand’s strength is a measure of the reliability of its future earnings. The greater the brand’s strength, the more future earnings are reliable and the lesser the risk.
Brand earnings are measured so that they do not to include unbranded profits, or profits that would have been incurred on a basic unbranded version of the products. A brand’s strength comprises seven variables:
- Leadership: This is the ability of the brand to influence the market.
- Stability: This is the characteristic that has made the brand the inherent “fabric” of the market.
- Market: This is the structural attractiveness of the market, its projected growth, et al.
- Geographic: This is the brand’s attractiveness and appeal in a multiplicity of markets with a view to distinguish between regional, national, and international brands.
- Trend: This is the brand’s ability to remain contemporary and relevant to consumers.
- Support: This is the quantity and quality of investments made to support the brand.
- Protection: This is the protection received from the legal system, patents, trademarks, etc.
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