|
|
Net advantage to merging |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Net advantage to mergingThe difference in total post- and pre-merger market value minus the cost of the merger.Net advantage to merging Similar MatchesProduction Cost AdvantageProduction Cost AdvantageA source of competitive advantage that depends on producing some product or service at the lowest cost. Law of Comparative AdvantageLaw of Comparative AdvantageThe principle that, given the freedom to respond to market forces, countries will tend to export goods for which they have comparative advantage and import goods for which they have comparative disadvantage, and that they will experience gains from trade by doing so. Idea due to Ricardo (1815). Net advantage to leasingNet advantage to leasingThe net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset. Absolute advantageAbsolute advantageA person, company or country has an absolute advantage if its output per unit of input of all goods and services produced is higher than that of another person, company or country. Comparative advantageComparative advantageThe ability to produce a good at lower cost, relative to other goods, compared to another country. In a Ricardian model, comparison is of unit labor requirements; more generally it is of relative autarky prices. With perfect competition and undistorted markets, countries tend to export goods in which they have comparative advantage. See also absolute advantage. Due to Ricardo (1815). Further SuggestionsCompetitive advantageComparative advantage Net advantage of refunding Revealed comparative advantage Yield advantage Advantage Location specific advantages First mover advantage Locational advantage Absolute advantage Chain of comparative advantage Distribution Cost Advantage Kaleidoscope comparative advantage Dynamic comparative advantage Cost advantage |
|
|
|