Most developing countries especially the sub-Saharan African countries have not realized the full benefits from International Trade. Required: Discuss the main reasons why such countries have not realized these benefits Some of the reasons why most developing countries (especially the Read More …
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Factors that may cause a shift of the supply curve
Discuss some of the factors that may cause a shift of the supply curve Factors: Cost of production (factor prices) Government policy (taxation and subsidies) Natural events (e.g weather) Goals of the firm Availability and cost of credit Transport and Read More …
How Domestic economic governance and transparency may contribute to economic growth and development in developing countries
Outline how Domestic economic governance and transparency may contribute to economic growth and development in developing countries Economic governance and transparency are about being open and exposed to constructive criticism and rating on matters pertaining to sound economic management and Read More …
Why reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries
Explain why reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries Reduction of Government deficits has increasingly become an important issue in fiscal policy framework of developing countries because of some reasons Read More …
Main causes of budget deficits
What are the main causes of budget deficits? Budget deficit – the excess of government spending over revenue; the main causes of government budget deficits include: Commitment to social welfare programmes Demographic trends Fundamental macro economic shifts eg slower growth Read More …
Distinction between Gross National and Gross Domestic products
Distinguish between Gross National and Gross Domestic products and account for the lower values of the former in developing economies Gross Domestic Product (GDP) – the money value of all (final) goods and services produced within the country but excluding Read More …
Factors that a firm should consider while developing an advertising policy
A business firm should consider the following factors while developing an advertising policy Advertising elasticity of demand Cost of advertising Target group e.g. the youth, business community, professionals, etc. The appropriate time to advertise Means of advertising e.g. electronic or Read More …
Distinguish between implicit and explicit costs
Implicit Costs: These are costs of self-owned, self employed resources used a firm in the process of production (abstract costs) e.g. opportunity cost, individual managerial skills etc. Such costs are not fixed and it‟s the owner who evaluates them. Read More …
Sources of Monopoly power
State the main sources of monopoly powers Sources of Monopoly power Exclusive ownership and control of resources (factors of production) Patent rights e.g. beer brands like Tusker, soft drinks like Coca Cola etc. Natural monopoly which results from economies of Read More …
What limits the successful application of Monetary policy tools in developing countries
What limits the successful application of Monetary policy tools in developing countries In developing countries like Kenya, the open market operations (OMO) are not quite virtually effective in controlling money supply. The main reason for this is the less developed Read More …