let’s say an e-commerce business experiences a delay from a supplier. It can transition to a "Plan B" with anagile supply chain, purchasing products from a different supplier to restock its inventory. This guarantees that the end consumer is unaffected, and that the brand...
Statutory tax penalties and incentives around sustainability and the environment are forcing a radical rethink of global supply chains.
Trade-offs abound in government. A common debate is whether the value of regulatory protections offsets the accompanying burdens on businesses and citizens. But what if emerging technologies and new techniques could help break these trade-offs?
(Cao et al.2022). When the government lacks the ability to observe the R&D productivity of enterprises, a flat tax or subsidy rate would not lead to a Pareto improvement (Akcigit et al.2022; Yang and Zhang,2021). Lowering corporate tax rates not only benefits firms by reducing their tax...
It sounds like a slightly upgraded, shareable spreadsheet with tracked changes, right? Blockchain’s functionalities may seem plain and straightforward. But given its tweaks to the old ledger tech, it now sports a few features that would be considered impossible in the soon-to-be old world of...
That said, one way that a supply-side program like SBLF would make sense, even if low demand is the force driving lower lending rates, is if there are high-quality borrowers that are not applying for credit merely because they anticipate that they will be denied. We could term these firms...
If the levying of new taxes on an elastic good, such as fine jewelry, occurs, most of the burden would likely shift to the producer as an increase in price may have a significant impact on the demand for the associated goods. Elastic goods are goods that have close substitutes or that ...
That is, when risky business prospects made commercial banks hesitant to extend new loans, the Fed would lend money to the banks, thus inducing them to lend more. The function of the Fed has grown and today it primarily manages the growth of bank reserves and money supply in order to ...
Changes in currency exchange rates can affect the prices of goods and services, the value of currency, and the balance of trade, which can significantly impact a country's GDP. The Bottom Line The balance of trade can affect foreign exchange supply and demand, which then affects currency excha...
While this article has mainly been discussing consumer goods, the law of supply and demand affects more abstract things as well, including a nation'smonetary policy. This happens through the adjustment of interest rates. Interest rates are the cost of money: They are the preferred tool for cent...